Tax on Super Earnings – Rate Increase Announcement
The Treasurer and Prime Minister confirmed today that the government will tax earnings on super balances over $3 million at 30 per cent from 1 July 2025.
Currently, earnings from superannuation in the accumulation phase are taxed at a concessional rate of up to 15 per cent. This will continue for all superannuation accounts with balances below $3 million.
From 2025‑26, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent, double the standard 15 per cent, with balances below the $3 million threshold still benefiting from the more generous tax break.
Government will look to legislate as soon as practicable and will undertake further consultation with the superannuation industry on implementation of the measure.
We will keep you updated with any further announcements and detail.
Please contact us to discuss further………….