Proposed new 30% tax on earnings where a member's total superfund balance exceeds $3m

From the 2025-26 income year onwards, the headline concessional tax rates applying to superannuation earnings are:

• Up to 15 per cent on earnings on superannuation balances below $3 million and

• Up to 30 percent overall on a percentage of earnings equal to the percentage of superannuation balances above $3 million.

The main concerns are:

• Taxing unrealised capital gains inside the super fund

• Management of reversionary pension death benefits to a spouse

• No indexation of the proposed $3M total super member balance cap

• Application of the tax to defined benefit superfunds

The Senate Inquiry report is due for release on 10/5/2024. We will update you when the final legislation is passed and discuss strategies to manage the new tax.

If you have any questions, please contact us.