The Government recently announced it will be imposing a 15% additional tax on individuals that have more than $3 million in superannuation. The new measure is expected to commence from 1 July 2025 (ie the 2026 income year).

The main takeaways from the information provided thus far include the following:

  • The additional 15% tax will broadly apply to the annual movement in the value of an individual’s superannuation balance, adjusted for withdrawals and contributions. These ‘earnings’ are further adjusted to ensure only the proportion corresponding to the balance above $3 million will be subject to tax.
  • There will be no limit imposed on the size of the superannuation account balances.
  • Individuals will have the choice of paying the tax liability personally or from their superannuation fund.

In current terms, the Government expects the new tax will apply to 0.5% of people with money in superannuation (around 80,000 people). However, the proposal does not currently allow for indexation of the $3 million threshold, so more individuals may be impacted in the future.

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