How will the proposed 30% tax on super above $3m work?

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How will the proposed 30% tax on super above $3m work?

The Government has announced that from 1 July 2025, the 15% concessional tax rate applied to future earnings for total superannuation balances (TSB) above $3 million will increase from 15% to 30%.


While the initial media release mentioned the tax would apply to ‘accumulation balances’, the fact sheet clarifies that it is ‘total superannuation balance’ which, based on its current definition, includes amounts in retirement phase pensions.


That way you can build your retirement wealth quicker by saving thousands of dollars more. As well as offering better features and flexibility, one of the other benefits of refinancing your SMSF loan is that you will be able to get a new SMSF loan that offers you more benefits.


How it will work. 

An additional tax of 15% on earnings will apply to individuals with a TSB over $3 million at the end of a financial year. 

The proposed calculation aims to capture growth in TSB over the financial year allowing for contributions and withdrawals. This method captures both realised and unrealised gains, enabling negative earnings can be carried forward and offset against future years.


The intent is to treat defined benefit interests in a similar way but no details are available as yet.

Rethink what your money can do.

Our Smart Private Wealth financial advisers are SMSF experts. Have a chat to see how we can help you look at your superannuation and retirement planning differently. 

TALK WITH OUR SMSF EXPERTS TALK WITH OUR SMSF EXPERTS


Shannon Smit,  Credit Representative No 533133 is a Credit Representative of SMART Business Solutions Mortgage & Lending Pty Ltd ACN 611 647 922.
SMART Business Solutions Mortgage & Lending Pty Ltd is a Corporate Authorised Representative of Outsource Financial Pty Ltd 384324.

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