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last mo.

Politicians to Defer New 30% Super Tax on Balances Over $3 Million

Cabinet admits long-serving members including Prime Minister Albanese can postpone payments until retirement, triggering fairness and conflict of interest concerns.

Anthony Albanese sidestepped a question on whether he’ll be immediately hit with Labor’s proposed tax of super balances above $3m. NewsWire/ Martin Ollman

Overview

  • The legislation, passed with Greens’ support, will impose a 30% tax on superannuation earnings above $3 million from July 1, 2025.
  • Cabinet minister Amanda Rishworth confirmed that veteran politicians and public servants on defined benefit schemes can defer the additional 15% levy until after they retire, with interest charged at the long-term bond rate.
  • The measure is projected to generate $2.7 billion annually and will affect about 800,000 Australians, roughly 0.5% of super account holders.
  • Shadow Finance Minister James Paterson has questioned whether Prime Minister Albanese recused himself from related cabinet discussions and accused the government of favouring insiders.
  • Opponents warn the non-indexed $3 million threshold could sweep in more accounts over time as inflation pushes more balances past the limit.