Overview

• The Australian government will implement a 30% tax on earnings above A$3 million in superannuation accounts, including unrealised gains, starting July 1, 2025.
• Labor now has the Senate majority needed to pass the legislation, with support from the Greens despite their push for a lower threshold and indexation being rejected.
• Treasury estimates the changes will initially affect 80,000 balances, primarily the top 10% of taxpayers, though critics warn the impact will grow significantly over time.
• Wealthy retirees are already restructuring their self-managed super funds (SMSFs) and selling assets to avoid the tax, with advisers reporting widespread panic.
• The reform is projected to raise A$2.3 billion annually by 2027-28 and A$40 billion over a decade, addressing rising national debt and fiscal deficits.