NEWSLETTERS
CLIENT ALERT
TAX NEWS | VIEWS | CLUES
Government Doubles Tax On Super Balances Above $3m
As per yesterdays announcement by the Federal Treasurer, the Government will tax earnings on super balances over $3 million at 30 per cent from 2025. The move doubles the standard 15 per cent tax on super earnings and is expected to hit about 80,000 Australians.
Prime Minister Anthony Albanese said the reform would “strengthen the system by making it more sustainable”.
“The savings that are made from this … will contribute $900 million to the bottom line of the forward estimates and some $2 billion when it is operating over the full year period,” he said. “This proposed change does not change the fundamentals of our superannuation system – 99.5 per cent of people with superannuation will be unaffected by this reform.”
Those affected by the increase would continue to benefit from more generous tax breaks on earnings from the $3 million below the threshold.
We will be able to comment further once the draft legislation is released.
If you would like to know more about this change and how it may affect you, please contact the team here at Thomas Hopper & Partners
Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.