Boost super income threshold for apprentices and women in construction
20 February 2025
MEDIA RELEASE
An income threshold is leaving young tradies, apprentices, and women in construction without the support that would give their retirement savings a boost.
New analysis from Cbus Super reveals that fewer members are receiving the Low-Income Super Offset (LISTO) than five years ago because the current income threshold hasn’t moved since LISTO was introduced in 2017.
Cbus Super Deputy CEO and Chief Member Officer Marianne Walker said the freeze is affecting many members, “Many young tradies, apprentices, and women in construction start their careers on low pay while learning their trade, yet the system isn’t keeping up.
“Raising the LISTO threshold to $45,000 makes sense. It’s a direct investment in their financial security, setting them up for the long term by boosting their super savings.”
The current settings mean an apprentice earning just $27,778 per annum will max out their entitlement — long before they get the full benefit.
“Boosting the cap to $810 would ensure workers aren’t penalised simply because super contributions are rising as intended,” Ms Walker said.
The figures in the Cbus Super Pre-Budget Submission 2025-26 show that lifting the LISTO threshold, permanently aligning it with the lowest tax bracket, and increasing the cap would help around 57,000 Cbus members* — ensuring the system works as it should by supporting more low-income workers.
The Pre-Budget Submission 2025-26 focuses on: better targeted support for young and low-income workers; addressing unpaid superannuation; better support for workers who involuntarily retire early; more flexibility for retiring workers; and simplifying super.
Background
Construction is the largest employer of full-time workers aged 15-19, with over 56,000 young people in the sector**. Cbus figures show that 45% of members under 18 received a LISTO payment last year, and women make up 18% of recipients—higher than their overall share of Fund membership*.
Declining % of Cbus members receive a LISTO payment*
Young Cbus members overwhelmingly on LISTO payment*
The Cbus Super Pre-Budget submission is available here.
Media enquiries: media@cbussuper.com.au or +61 3 9100 4930
* Source: internal data
About LISTO - The low-income super tax offset (or LISTO) is paid to workers with an adjusted taxable income of $37,000 or less. The offset equals 15% of the individual’s concessional contributions. This removes the tax on contributions, subject to a maximum of $500.
This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au
Cbus is the leading Industry Super Fund representing those that help build and maintain Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 920,000 (as at 30 June 2024) and we manage more than $94 billion (as at 30 June 2024). Our members include workers and retirees, their families and employers. As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, welcoming 17,000 new members and establishing itself as the leading fund for energy and electrical workers in Australia.
Issued 20 February 2025, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for the Construction and Building Unions Superannuation Fund ABN 75 493 363 262 (Cbus and/or Cbus Super).