Hundreds of thousands of Australians on low wages are about to get a retirement boost, while a smaller group of super-rich savers face bigger tax bills, thanks to the Greens giving the green light to Labor’s long‑debated superannuation overhaul in the Senate.
What’s Changing From 1 July
From 1st July 2026, the Low Income Superannuation Tax Offset (LISTO) will be expanded so that workers earning under 45,000 a year get more of their compulsory super contributions refunded back into their fund.
That lifts the threshold from the current 37,000, bringing roughly 1.3 million extra low‑paid workers into the scheme, many of them in casual and part‑time jobs across hospitality, retail and care work.
Industry experts say that’s no small potatoes— The Association of Superannuation Funds of Australia (ASFA) says someone earning 44,000 a year could finish work with close to an extra 50,000 in their super over a lifetime as a result.
The government expects the package to raise about 1.6 billion dollars a year in extra revenue overall, partly offset by the larger LISTO refund for low‑income earners.
Higher Taxes For The Very Rich
At the other end of the wealth curve, the deal locks in steeper taxes on super earnings for very large balances, a move that will hit about 90,000 of the country’s richest account‑holders.
The changes will apply to balances above 3 million dollars, affecting roughly the top 0.3 per cent of super funds, many of which are self‑managed funds used as long‑term tax shelters.
Instead of paying a flat 15% on all earnings, those with balances between 3 and 10 million dollars will face a 30% rate on earnings above the 3 million thresholds, while balances above 10 million will cop 40% on earnings over that higher limit.
The higher rates apply only to the slice of earnings above each threshold, not the entire account, a structure designed to blunt arguments that the changes are retrospective or punitive.
Greens Push For Tax Shake-Up
The legislation was always going to clear the Labor‑dominated lower house, but the Coalition’s opposition meant it could only pass the Senate with Greens support.
After years of wrangling over how hard to go on wealthy retirees, the minor party confirmed this morning it will back the bill, effectively sealing its passage within days.
Greens senator Nick McKim noted disappointment over watered-down plans but praised the boost, especially since two-thirds helps women’s retirement savings. “We’re going to support the bill as a downpayment on genuine, progressive tax reform,” he said.
What It Means For Ordinary Workers
Treasurer Jim Chalmers has repeatedly cast the budget as a chance to tackle “intergenerational inequality”—code for rethinking the way tax concessions skew towards older, wealthier Australians.
For millions of Australians on modest wages, the July 1 changes will be almost invisible in the short term: no new forms to fill out, no decisions to make, just slightly more money trickling into their super as the tax office quietly refunds contributions.
Over decades, though, the difference compounds, particularly for younger workers in their 20s and 30s juggling casual shifts in cities like Sydney and Melbourne where living costs already bite hard.
With the Greens banking this deal as just the first step and housing affordability still a dominant issue in Australia’s biggest cities, the real showdown over who pays what tax looks likely to land on 12th May 2026.
Keep an eye on this space for more updates as we go.