Plans to increase taxes on large superannuation balances will be refined after the federal government’s initial proposal was criticised, especially by high net worth individuals.
Long-touted reforms to double the tax rate to 30 per cent on super accounts above $3 million will remain in place, but a second threshold will be created for balances above $10 million, which will be taxed at 40 per cent.
The thresholds will also be indexed, following concerns the taxes would apply to more people over time due to bracket creep.
Unrealised capital gains will also no longer be captured by the changes, which will come into effect from July 2026.
About 80,000 Australian have super accounts holding $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 treasurer and as a government we always try to take feedback seriously,” he told reporters in Canberra on Monday.
“We always try to find the best way through.
“We found another way to satisfy the same objectives.
“It means a fairer superannuation system from top to bottom.”
The government will also increase the low-income super tax offset payment from $500 to $810.
While Labor had floated changes to super taxes two years ago, the proposed legislation has never been introduced into federal parliament due to opposition from the coalition and the Greens.
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