Overview

• The proposed tax reform will increase the concessional tax rate from 15% to 30% on superannuation earnings above $3 million, including unrealised gains, starting July 1.
• The government estimates the changes will impact approximately 80,000 accounts initially and generate $2.7 billion in its first full year.
• Critics warn the non-indexed $3 million threshold could capture hundreds of thousands more over time due to inflation, disproportionately affecting younger savers.
• Concerns have been raised about potential impacts on venture capital investment, though official data shows self-managed super funds contribute only 5% of such funding.
• Treasurer Jim Chalmers has yet to begin formal Senate crossbench negotiations, with the Greens advocating for a $2 million threshold or automatic indexation.