The concessional tax rate on superannuation earnings for balances over $3 million will double from 15 per cent to 30 per cent, coming into effect from 1 July 2025 – just after the next federal election.

The average Australian superannuation balance sits at $150,000, and approximately two-thirds of Australians have less than $100,000 in their accounts. The change will impact approximately 80,000 individuals (0.5% of the population) who have over $3 million in their superannuation funds, with Prime Minister Anthony Albanese stating “It’s hard to argue that those levels [are] about actual retirement incomes, which is what superannuation is for.”

Over a four year period, the increase seeks to bring approximately $2 billion in additional tax and is not set to be retrospective on earnings prior to July 1 2025.