Tax rate increased for Australians with super balances above $3 million

The Albanese government has announced superannuation balances above $3 million will have their concessional rate doubled from 2025.

Currently, earnings from superannuation in the accumulation phase are taxed at a concessional rate of up to 15 per cent.

This will continue for all superannuation accounts with balances below $3 million

From 2025-26, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent.

This is expected to apply to around 80,000 people, and they will continue to benefit from more generous tax breaks on earnings from the $3 million below the threshold.

This change will take effect from July 1, 2025, and will bring in the government about $2 billion in additional tax over a four-year period.

Information sourced from https://www.abc.net.au/