1.3 MILLION Low-Income Workers Set for Windfall Under Superannuation Tax Reforms – with Teenagers, Casuals and Single Parents Among the Big Winners
- Treasurer Jim Chalmers reveals a staggering 1.3 million Australians, including retail workers, carers, and cashiers, will benefit from proposed superannuation tax reforms
- The changes will see low-income workers receive an automatic bonus of up to $810, with women and young people among the biggest beneficiaries
- The reforms are part of a suite of changes aimed at making superannuation fairer for workers, with millionaires also set to pay more tax on huge nest eggs worth over $3 million
In a major breakthrough for low-income workers, Treasurer Jim Chalmers has announced a sweeping reform to superannuation taxes that will see 1.3 million Australians, including teenagers, casuals, and single parents, receive a bonus of up to $810. The changes, aimed at making superannuation fairer for workers, will lift the income threshold for the low-income superannuation tax offset from $37,000 to $45,000, benefiting clerks, carers, and cashiers among others.
“We are helping lower income workers earn more, keep more of what they earn and retire with more too,” Treasurer Chalmers told news.com.au. “This is all about a fairer super system from top to bottom.”
The overhaul is part of a broader package of reforms announced this week, which will also see millionaires pay more tax on huge super nest eggs worth over $3 million. Under the changes, low-income workers will receive a bigger tax offset, with women and young people among the biggest beneficiaries.
Finance Minister Katy Gallagher said the changes would have a significant impact on women, who are often left behind when it comes to retirement savings. “Every dollar we help women save for retirement matters, it’s how we make the economy fairer and ensure women aren’t left behind,” she said.
The reforms will bring the total number of Australians eligible for the low-income superannuation tax offset to 3.1 million, with around 60 per cent of them being women. The average annual payment is set to increase by almost $100, from $280 to $375.
The changes are a significant step forward for low-income workers, who often struggle to make ends meet. By lifting the income threshold and increasing the tax offset, the government hopes to encourage more workers to save for their retirement and create a fairer superannuation system.
“Our reforms to the low-income superannuation tax offset will help deliver a more secure retirement for more than a million Australians,” Treasurer Chalmers said. “Clerks, carers and cashiers are some of the biggest beneficiaries of this change, and we’re helping them get the super contributions they deserve.”