Government moves to double tax rate for multi-million dollar super balances

28 February 2023
| By Charbel Kadib |
expand image

The Albanese government has moved to double the concessional tax rate for superannuation balances exceeding $3 million.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers have announced a proposal to double the concessional tax rate for super balances exceeding $3 million, from 15% to 30%.

The revised rate, which would apply from July 2025, would not be retrospective, applying only to future earnings.

According to Prime Minister Albanese, the changes would impact 0.5% of superannuation accounts, or roughly 80,000 Australians.

The higher concessional tax rate, to be proposed in the October budget, is tipped to contribute $900 million to the bottom line over the forward estimates and approximately $2 billion in the first full year of revenue after the election.

The proposed reform comes as the newly released 2022‑23 Tax Expenditures and Insights Statement revealed superannuation tax concessions amount to about $50 billion a year — projected to exceed the cost of the Age Pension by 2050.

“This modest adjustment is consistent with the Government’s proposed objective of superannuation, to deliver income for a dignified retirement in an equitable and sustainable way,” Prime Minister Albanese said.

“Labor built the superannuation system. We will always protect it and make it stronger, because we want working people to have dignity and security in retirement.

The government said it would introduce enabling legislation to implement the adjustment “as soon as practicable”, with further consultation to be undertaken with the superannuation industry and other relevant stakeholders.

Read more about:


Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

2 months 1 week ago
Kevin Gorman

Super director remuneration ...

2 months 2 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

2 months 2 weeks ago

The $125 billion fund has welcomed a senior Morningstar executive for a new policy and advice role....

19 hours hence

Ausbil’s Global SmallCap team looks at this generational change in power markets and discovers opportunities for unrecognised growth in global small-cap markets.The world...

4 years 1 month ago

A global investment executive has told Super Review why, much like the common adage, Australia’s super sector runs the risk of being a jack of all trades but master of no...

3 days 18 hours hence