The Prime Minister has confirmed that concessional tax rates will change from 15% to 30% for people with more than $3 million of superannuation. While this change will not come into force until 2025-2026, it will impact around 80,000 people.
These changes will not impact those with superannuation account balances under $3 million. The average superannuation balance is approximately $150,000 and the changes are expected to affect about 0.5% of people with superannuation.
The introduction of these changes will, according to Treasurer Jim Chalmers, save about $2 billion to the budget. In figures released today, the government claims that an estimated $51 billion is lost in revenue as a result of the current concessional rate of 15%.
Further, the Treasurer also noted that it was not expected that the $3 million threshold for superannuation account balances would be indexed.
If you would like to discuss these proposed changes to superannuation, contact our dedicated Superannuation team.