From 1 July 2025, the Government will reduce the tax concessions available to individuals whose total superannuation balances exceed $3 million at the end of the financial year.
Individuals with balances over this threshold would be subject to an additional tax of 15 per cent on the earnings on any balance that exceeds the $3 million threshold. This change broadly brings the headline tax rate on earnings corresponding to that proportion of the balance greater than $3 million to 30 per cent.
This change is expected to affect less than 0.5 per cent (or around 80,000 people) with a superannuation account.
At the time of writing this article, this policy is still a proposal and has not been legislated.
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