$3 million super tax proposal amended

Treasurer Jim Chalmers has announced significant changes to the $3 million superannuation tax following concerns about the proposed legislation in its original form.

The following changes to proposed Division 296 will now be tabled to parliament:

  • Unrealised gains on investments in the superannuation fund will not be taxable under the measures to be introduced
  • Earnings on balances over $3 million will be taxed at 30%
  • Earnings on balances over $10 million will be taxed at 40%
  • Both the $3 million and $10 million super balance thresholds will be indexed in line with the Transfer Balance Cap
  • This new tax rule would apply from the financial year starting 1 July 2026

Despite the potential changes, superannuation remains a tax-effective retirement savings vehicle for the vast majority of Australians. We advise clients to wait until the legislation has passed in its final form before making any strategic decisions.

(Note: The logos chosen for the above image are for illustration purposes only)

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