Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today, we are really proud to be introducing the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 to the House.

This is all about making Australia's super system stronger and more sustainable.

We are making superannuation fairer from top to bottom to help disability and aged-care workers, retail and hospitality staff, and early childhood educators and nurses get the secure retirement that they need and deserve.

This bill does two key things.

Firstly, it boosts the low-income superannuation tax offset, or LISTO.

This will make sure low-income workers receive a fairer tax concession on their super contributions.

It's another important part of our government's plan to help low-income workers earn more, keep more of what they earn and retire with more as well.

Secondly, the legislation will reform super tax concessions, so that they are better targeted for large balances.

From July next year, we will increase the maximum LISTO payment by $310 to $810, and raise the eligibility threshold from $37,000 to $45,000.

These reforms will help deliver a more secure retirement for 1.3 million Australians, the majority of them women.

It will mean the total number of Australians eligible for the LISTO will increase to 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.

These workers could receive a benefit at retirement of around $15,000, depending on an individual's income over their career.

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 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.

The other part of this bill reduces tax concessions available to individuals with total superannuation balances above $3 million.

This measure will affect less than half a per cent of all Australians and will take effect from July this year.

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 earnings will remain tax free in the retirement phase.

The concessional rate applying to future earnings on balances above $10 million will be 40 per cent.

Both the $3 million and the $10 million thresholds will be indexed.

These reforms maintain the concessional treatment of superannuation, but ensure it is provided in a more equitable and a more sustainable way.

Here, I want to thank the superannuation industry and the broader community for their engagement and feedback on this legislation. And I want to thank my colleagues in the Treasury ministers here and behind me in our team for all of the work that has gone into these important changes.

Together, these changes will maintain concessional tax treatment for super across the board.

They make the system more sustainable by better targeting concessions for the biggest balances to help fund more super for people with the smallest balances.

Voting against this bill would be a vote against a fairer super system.

It would be a vote against more super for Australians on the lowest incomes.

And it would be a vote for bigger tax breaks for those who already have millions in their super.

The Australian Labor Party built our superannuation system.

And this bill is another important part of our agenda to make it stronger and fairer and more sustainable.

It's why we've legislated the objective of super—to provide income for a secure retirement.

We've increased the superannuation guarantee so it's finally reached 12 per cent.

We're paying super on government paid parental leave to help close the gender gap in retirement savings.

We've legislated payday superannuation starting from July this year.

We've expanded the coverage of the superannuation performance test from around 80 products to more than 800.

We've legislated to align financial reporting requirements by funds with those of public companies.

We've also announced mandatory service standards and we're reforming the retirement phase of superannuation as well.

And today we're introducing this legislation to better target superannuation tax concessions and increase the LISTO.

Our superannuation system is the envy of the world.

And these changes will make it even stronger and even fairer so it continues to deliver a more secure retirement for millions of working Australians today and into the future.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.