‘Better targeted’: Labor tinkers on big super accounts
Plans to increase taxes on large retirement balances are to be retooled after the federal government’s initial proposal was criticized, particularly by individuals with high net worth.
Long-talked-about reforms to double the tax rate to 30 per cent on super accounts over $3 million will remain in place, but a second threshold will be created for balances over $10 million to be taxed at 40 per cent.
Thresholds will also be indexed due to concerns that taxes will be applied to more people over time.
Unrealized capital gains will also no longer be covered by the changes, which come into force from July 2026.
About 80,000 Australians have super accounts worth $3 million or more and currently pay the standard 15 per cent concession rate.
Dr Chalmers said the changes would make the super system fairer.
“As the treasurer and the government we always try to take feedback seriously,” he told reporters in Canberra on Monday.
“We always try to find the best way.
“We found another way to meet the same goals.
“This means a fairer retirement system from top to bottom.”
The government will also increase the super tax offset payment for low-income earners from $500 to $810.
Although Labor introduced changes to super taxes two years ago, the proposed legislation was never introduced to the federal parliament due to opposition from the coalition and the Greens.
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