A series of recent superannuation reforms are set to improve retirement outcomes for Australians, with modelling suggesting workers could be thousands of dollars better off by retirement under changes including Payday Super, expanded Low Income Superannuation Tax Offset (LISTO) eligibility, and super payments on government-funded paid parental leave.
According to new data from AustralianSuper, many Australians still do not understand how the reforms could affect their retirement savings, despite the changes being introduced over the past year.
The fund said 8 in 10 members, or 81 per cent, had either never heard of Payday Super or only vaguely recognised it, while around one-third of working members did not know how to check whether their employer had paid their super contributions.
The reforms are aimed at improving retirement outcomes for lower-income earners, casual workers, parents taking time out of the workforce, and employees who may have previously missed super entitlements.
Under Payday Super, which begins on 1 July 2026, employers will move from paying super quarterly to paying contributions alongside each pay cycle. The change is intended to help balances grow more consistently through earlier compounding returns.
AustralianSuper modelling indicated workers receiving super contributions more frequently could be around $6,000 better off at retirement due to the long-term effects of compounding returns.
Changes to LISTO are also expected to increase retirement balances for lower-income Australians.
From 1 July 2027, the maximum payment will increase from $500 to $810, while the income threshold will rise from $37,000 to $45,000.
AustralianSuper said modelling showed the increased LISTO payments and expanded eligibility could add around $15,000 to a low-income worker’s retirement savings over their working life.
The fund also pointed to the introduction of super guarantee payments on government-funded paid parental leave from 1 July 2025, describing the reform as an important measure to help parents maintain retirement savings while taking time away from work.
Modelling suggested Australians who take parental leave once could be around $7,000 better off at retirement under the new arrangements.
AustralianSuper chief strategy officer, Paula Benson, said the reforms would help strengthen retirement outcomes over time.
“Recent reforms including LISTO, paying super on government paid parental leave and the upcoming shift to Payday Super contribute to more equitable outcomes in retirement. They are designed to ensure contributions are made earlier, more consistently and in a way that better supports long-term financial outcomes.
“It’s important Australians understand these changes so they can make the most out of their super. With the right information, guidance and advice.”
