The Australian Government has announced changes to its superannuation tax reform.

The changes include:

  1. introduce a second threshold, with a tax rate of 40 per cent applying to earnings on superannuation balances over $10 million.
  2. index the large balance thresholds of $3 million and $10 million, apply these changes to realised earnings and push back the start date by one year to consult on final details and prepare legislation.

The changes mean that from 1 July 2026:

  • The total concessional tax rate applied to earnings on balances between $3 million and $10 million will be 30 per cent.
  • The total concessional tax rate applied to earnings on balances over $10 million will be 40 per cent.
  • Both the $3 million and $10 million super balance thresholds will be indexed to maintain relativity with the Transfer Balance Cap that was introduced by the Coalition.

Alongside these changes, the Australian Government also announced that the low‑income superannuation tax offset (LISTO) will increase by $310 to $810 from 1 July 2027 and the eligibility threshold will also be raised from $37,000 to $45,000.

More information is available at the Treasury website.

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