Libby Coker (Corangamite, Australian Labor Party) Share this | Hansard source

I rise today in support of the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026. This bill is about something absolutely fundamental: making Australia's superannuation system stronger, fairer and more sustainable in the longer term. Superannuation represents the best of what it means to be Australian. It represents dignity, it represents security and it represents confidence that, after a lifetime of work—often physically demanding or sometimes underrecognised—Australians can retire with stability and independence.

In my electorate of Corangamite in Victoria, I often see what superannuation means in very practical terms. I speak regularly with people who came to Australia after the Second World War, moving to the Geelong region to build new lives. They worked in factories, on building sites and in small family businesses. They weren't wealthy people, but, over decades of steady work, they built up superannuation balances that now sit alongside the age pension and provide them with something incredibly important: choice, certainty and dignity in retirement.

For younger generations, this superannuation reform will deliver even more over the course of their careers. But, while this is so, we also know this: the benefits of super could be better distributed. That's why we're introducing this bill—to make superannuation fairer for all, to help disability and aged-care workers, to help retail and hospitality staff and to help early years educators and nurses get the secure retirement they need and deserve.

To achieve this, this bill makes two important changes. Firstly, it boosts the low-income superannuation tax offset and, secondly, it better targets superannuation tax concessions for very large balances. Together, these reforms strengthen the system. They provide more support for those on low incomes, while ensuring that the concessions for larger balances are fair and sustainable.

On the first change, the low-income superannuation tax offset exists for a simple reason. Without it, low-income earners could pay more tax on their super contributions than they would on their ordinary income. This is not fair, so under this legislation we will increase the maximum payment by $310, lifting it to over $800 from July next year. We'll also raise the eligibility threshold from $37,000 to $45,000. These are not minor adjustments. They are meaningful reforms that deliver on the Albanese government's core commitment to help more Australians get ahead and lead fulfilling lives. Changes in this bill will help deliver on that commitment.

The changes will deliver a more secure retirement for 1.3 million Australians, the majority of whom are women. It will mean the total number of Australians eligible for LISTO will increase to around 3.1 million people. Our changes will benefit all workers with incomes between $28,000 and $45,000, with an average increase in LISTO payments of $410 annually. These workers are our disability support workers, our aged-care workers, our retail hospitality staff, Australians who work weekends, nights and public holidays, our early childhood educators and our nurses. These are the workers who care for us, who care for our communities and who bring people together, and yet, too often, they retire with far less than they deserve.

By strengthening LISTO, we are making sure that low-income workers receive a fairer tax concession on their super contributions. Over the course of a working life, these changes could deliver around $15,000 extra at retirement, depending on an individual's income path. This is not insignificant. For someone on a modest income, $15,000 can mean the difference between replacing a broken-down car or going without. It can mean more Australians have the ability to pay for the support they need at home, whether it's improving the energy efficiency of their home or simply ensuring they have what they need to live comfortably.

The LISTO eligibility threshold and maximum payment amount will also automatically adjust in line with any future changes to income tax thresholds and the superannuation guarantee rate. This will ensure that low-income workers receive a fairer tax concession on their super contributions to align with the government's third round of tax cuts taking effect in 2027. Those tax cuts and these changes will make a real difference to the lives of millions of Australians who work hard and who do deserve better, such as Australians who volunteer at sporting clubs and food relief centres. They should have support, and that's what this bill delivers.

The second key part of this bill reduces tax concessions for individuals with a total super balance above $3 million. This will affect less than half a per cent of all Australians and will commence from July this year. Let me repeat that. It will only affect less than half a per cent. It will mean the concessional tax rate applying to future earnings on balances between $3 million and $10 million will be a combined headline rate of 30 per cent. Earnings corresponding to balances below $3 million will continue to be taxed at 15 per cent in the accumulation phase and—

Debate interrupted.

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