Treasurer’s super changes are welcome — but we need more than tweaks to tax concessions

Super Consumers Australia has welcomed changes to superannuation tax concessions and expanded support for low-income earners, calling them a modest improvement in a system that lacks equity.

“For decades, the super system has delivered enormous tax breaks to those who already have more than enough, while leaving millions behind. These reforms begin to claw back some fairness, but we need to go further if we’re going to create a more equitable system and address the needs of people retiring in poverty.”

The changes announced by the Treasurer yesterday include:

• Increasing and expanding the Low-Income Superannuation Tax Offset (LISTO) to $810 and raising the income threshold to $45,000 from 1 July 2027.
  
• Adjusting the $3 million tax to only apply to realised gains and to index the threshold over time.
  
• Introducing a new 40% tax rate on balances over $10 million.
  

“These changes nudge the system in a fairer direction. But they don’t address the root problem. The system still gives too big a ‘leg up’ in the form of tax concessions to people who don’t need it to live a comfortable retirement,” Mr O’Halloran said.

Super Consumers is calling for a broader shift in policy priorities, including:

• A meaningful increase to Commonwealth Rent Assistance, which would deliver real relief to older Australians in rental stress.
  
• Investment in independent retirement guidance, like MoneySmart, so people can confidently plan and make the most of what they have.
  
• Mandatory customer service standards and consumer protections, so people aren’t left fighting their super fund in moments of vulnerability.
  

“Super can play a role, but it’s not a silver bullet. If we want a fair retirement for all Australians, we need policy that’s designed for the people who need help most.”