February 28, 2023

Just a quick update following significant recent press speculation, to let you know that the government today announced proposed changes to the tax concessions for higher balances in super – please note that these changes will only apply to super balances over $3 million per person, and is expected to impact fewer than 0.5% of superannuation accounts.

The proposed changes will have the following impacts:

  1. Changes are proposed to take effect from 1 July 2025
  2. Super earnings on balances over $3 million per person will be taxed at 30% (currently 15%) – this will be on the portion of the balance over $3 million, not on the total balance
  3. For all amounts under $3 million per person, superannuation investors will continue to receive the lower rate of 15% on earnings (tax-free in pension phase)
  4. At this stage, a cap on the total amount of funds allowed in the superannuation environment is not being implemented (another rumoured option)

Please refer to the following ABC article for further details: https://www.abc.net.au/news/2023-02-28/jim-chalmers-superannuation-tax-changes-three-million-cap/102032156

If you would like to discuss further, please call any of the advisers here at Bennett & Co - Richard Bennett on 07 3876 8131, Tony Garnham on 07 3184 2520, or Michael Lynch on 0412 144 574.




Richard Bennett - Managing Director

Bennett & Co Financial Services