Overview

• The Senate is expected to secure Greens’ support this week, clearing the way for the 15% concessional tax on earnings above A$3 million to be legislated.
• Treasurer Jim Chalmers confirmed the levy will commence on July 1 irrespective of parliamentary timing in line with tax-change conventions.
• The measure will directly affect about 80,000 Australians in the top 0.5% of super account holders and could extend to 500,000 over time as balances grow.
• Other July 1 reforms include raising the super guarantee rate from 11.5% to 12%, indexing transfer balance and defined benefit caps, and granting super entitlements for paid parental leave.
• Critics warn the static A$3 million threshold may ensnare younger savers as balances inflate; the government contends the levy boosts fiscal sustainability and equity.