On 28 February, the Albanese Government announced it will introduce a 30% tax rate to super earnings on balances above $3m.
The measure is limited to those individuals who have more than $3m in super at the end of 30 June 2026. The $3m (per person, not per fund) threshold won’t be indexed – so it won’t increase with inflation each year.
This means those affected would retain the current 15% tax rate on earnings below the $3m threshold but will pay 30% tax on earnings for balances over $3m. It is also proposed that the measure will not impose a limit on super account balances in the accumulation phase only, but the pension and accumulation accounts combined.
The measure is expected to impact around 80,000 people (or 0.5% of people with super accounts) but will generate $2 billion in revenue in its first full year and $3.2 billion over five years. The Government has confirmed the changes will not be applied retrospectively and will apply to future earnings, coming into effect after the 2025 federal election with a start date of 1 July 2025, but plans on legislating the change as soon as practicable.