Government Super Announcements – October 2025

On 13 October 2025, the Government announced a number of reforms to the super system, which were as follows: 

Boost to low-income superannuation tax offset (LISTO) 

Increase the LISTO from $500 to $810 and raise the eligibility threshold from $37,000 to $45,000 from 1 July 2027. 

The LISTO is essentially a tax refund of super contributions (15%) up to the limit of $810.   The tax is refunded to the super fund that received the contributions.   For example, an employee earning $30,000 per annum plus super guarantee, would receive super contributions totalling $3,600, tax on these contributions is typically 15% so in this case $540, this entire amount would be refunded to the individual’s super account. 

This is part of the plan to help low-income workers earn more and retain funds for retirement. 

Division 296 Tax – Summary of Changes  

The Government has updated its proposed Division 296 tax, which targets superannuation balances over $3 million. Key changes include: 

• Tax applies only to realised earnings (not unrealised gains) on balances above $3 million 

• A second threshold of $10 million introduced, with earnings above this taxed at 40% 

• Start date deferred to 30 June 2027 to allow for further consultation and system preparation 

• Both thresholds ($3 million and $10 million) will be indexed to maintain alignment with the Transfer Balance Cap 

Refer to the dedicated Division 296 article for further detail. 

The Government will introduce legislation to implement these changes as soon as possible in 2026. 

If you would like to discuss the above in further detail or would like to meet with one of our dedicated financial advisers, please don’t hesitate to contact our office on (03) 9584 2277 or email info@vatcpa.com.au