Revised Super Tax Proposal
- johnry8
- Oct 31
- 1 min read
The federal government announced amendments to its proposed superannuation tax changes. The original proposals (including one under Division 296) had raised concerns because they would have imposed higher tax burdens on large super balances and certain earnings, especially impacting high net worth individuals.
Initially, the proposal was for individuals whose superannuation balance exceeded $3 million. An extra tax of 15% (raising the tax rate from 15%, to 30%) would apply. This would include not only realised gains (e.g. interest, dividends, asset sales) but also included unrealised gains (eg. Increases in market value of assets held in the fund) for amounts above that threshold.
The revised proposal has dropped the tax on unrealised gains, meaning that tax will only be applied to realised earnings and you will not be taxed simply because the value of an asset in your super fund has increased on paper, but you haven’t sold. The threshold will still be $3 million, however the tax rate of 30% will apply only to the balance above $3 million.
These changes are planned to take effect from 1st July 2026. If your super balance exceeds $3 million, review your investment strategy before the 2026 rollout.
At Rise Accountants, we help you stay compliant with your super strategy.
Call 07 31308057 or book your free consultation online today.