Federal government proposes tax rate increase for super balances above $3 million
The federal government has proposed that individuals with superannuation balances above $3 million will be subject to an additional tax of 15%. This tax will apply to the earnings on any balance that exceeds the threshold from 1st July 2025 under the proposed reform.
Prime Minister, Anthony Albanese, said that the changes will impact around 80,000 people, which is less than 0.5% of all Australians with a superannuation account. The change applies to future earnings and will not impose a limit on the size of the account balance.
This is only a proposed change as the government is yet to introduce legislation for its implementation. Further consultation will be undertaken with the superannuation industry and other relevant stakeholders.
If you have any questions regarding this matter, please contact our office to chat to one of our superannuation experts.
Source: Treasurer, Jim Chalmers, “Superannuation tax breaks”, [media release], 28 February 2023.
