Overview

• The proposed reform doubles the concessional tax rate on superannuation earnings above $3 million from 15% to 30%, starting July 1, 2025.
• Treasurer Chalmers emphasizes the change as modest, affecting only 80,000 accounts, and vital for budget sustainability and funding priorities like Medicare and cost-of-living relief.
• Critics, including the SMSF Association, argue the reform's inclusion of unrealized capital gains is flawed and destabilizing for self-managed super funds.
• Reports indicate wealthy retirees are restructuring portfolios ahead of the change, raising concerns about potential revenue shortfalls.
• The legislation is expected to pass the Senate with Greens support, though Chalmers has rejected calls to index the $3 million threshold for inflation.