Balanced super system key in Budget 2023

Yasmine Raso

Senior Journalist, Financial Newswire

10 February 2023

After signalling the 2023 Federal Budget’s potential to deliver a more gender-equitable super system, more modelling from health and community services super fund, HESTA, has found benefits for regional members and low- and middle-income earners.

With over 400,000 members living in Australian regional areas, the modelling estimated the average salary for a member living in metropolitan areas is 11.65 per cent higher than regional members.

HESTA’S 2023-2024 Pre-Budget submission showed how expanding the eligibility criteria for the Low Income Super Tax Offset (LISTO) to those earning up to $45,000 or the top of the second tax bracket and aligning the offset with the current Superannuation Guarantee of 10.5 per cent would improve the retirement balances of lower income earners.

“Superannuation is driven by a fundamental belief that dignity in retirement is for everyone, not just the lucky few. It’s time to acknowledge the gaps in our super system,” HESTA CEO, Debby Blakey, said.

“Low- and middle-income earners, many of whom live in regional Australia, as well as many women need solutions sooner than later to address the gaps that currently sees them retiring with far less security than they should.”

The measures deduced from the modelling would allow 250,000 HESTA members to see their super savings climb.

Blakey also said “persisting gender, income and structural inequities” have continued to plague Australia’s income and taxation system, as almost 80 per cent of HESTA’s 970,000 members are typically low- and middle-income earning females and endure a 152 per cent decrease in super tax concessions compared to men.