Former British Prime Minister Harold Wilson is believed to have been the origin of the phrase “a week is a long time in politics”, and Canberra this week was a case in point.
Leadership changes, global tensions and political drama crowded the headlines. But amid all that noise, Parliament quietly passed one of the most important super reforms in years, with the Senate approving the Government’s Building a Stronger and Fairer Super System Bill 2026 on Tuesday.
And for those industry colleagues who’ve been advocating for years for the low income super tax offset (LISTO) to be unfrozen, it must have been quite remarkable to watch the defrosting process complete in just in five months.
Unfreezing the LISTO is a long‑overdue fairness fix — and a big win for 1.3 million low‑paid Australians, most of them women.
LISTO exists for a simple reason: low‑income workers shouldn’t be penalised for saving for retirement. But for 13 years it was frozen in time, steadily eroded by rising wages, higher super contributions and shifting tax brackets. The result? Hundreds of thousands of cleaners, carers, retail workers and hospitality staff missed out on money that should have been theirs.
The reforms passed finally bring LISTO back into line with reality. They lift the income threshold from $37,000 to $45,000 and increase the maximum rebate from $500 to $810.
Crucially, the payment will now move automatically with changes to tax brackets and the Super Guarantee, locking in fairness for the future rather than letting it quietly erode again.
Over a working life, the impact is significant. For a woman who earns the minimum wage across her whole working life, our modelling shows it could deliver up to $60,000 more in her super by retirement – dramatically lifting her income.
This reform also matters because it tackles the gender super gap at its roots. Women are over‑represented in low‑paid and part‑time work, and they’ve borne the brunt of LISTO’s long freeze. Fixing this inequity is one of the most direct ways to strengthen women’s retirement.
Super works best when it’s fair, automatic and built to last. By updating LISTO and future‑proofing it, Parliament has taken a meaningful step toward a system that rewards work and delivers a stronger retirement for those who need it most.
