10 May 2023

From 1 July 2025 the Government will reduce the tax concessions available to individuals with a total superannuation balance (TSB) exceeding $3 million.  This means that the tax applied to superannuation earnings will increase from 15% to 30% on TSB over $3 million.

If your total superannuation balance (across all super funds) is less than $3 million this will not affect you.

This reform is intended to ensure generous superannuation concessions are better targeted and sustainable. It will bring the headline tax rate to 30%, up from 15%, for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million. This rate remains lower than the top marginal tax rate of 45%. Earnings relating to assets below the $3 million threshold will continue to be taxed at 15% or 0% if held in a retirement pension account such as NESS Pension.

The additional tax on earnings imposed by will impact around 80,000 individuals in 2025–26, or approximately 0.5% of individuals with a superannuation account. This will not place a limit on the amount of money an individual can hold in superannuation. The current contributions rules continue to apply.

Things you should know

The information contained in this article is current at the time of its publication.  However, some information may change over time. The content is for general information only and does not constitute personal advice. We recommend that you consult with a suitably qualified person before making any financial decisions. For more information on NESS Super, or before deciding whether to acquire or hold a product, consider if it is appropriate.  See our Financial Services Guide (FSG), the relevant Product Disclosure (PDS) and the Target Market Determination (TMD).




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