Will the government’s changes to super affect me?

On Tuesday 28 February 2023 Prime Minister Albanese and Treasurer Jim Chalmers announced new tax rules governing superannuation.

The changes will impact a relatively small number of Australians who have super balances of $3 million or more and are due to take effect on 1 July 2025.

What are the new rules?

In summary, the tax rate for super balances of $3 million and above will change. Currently, all earnings inside super are taxed at a rate of 15 per cent regardless of an account's balance. From 1 July 2025, a tax rate of 30 per cent will apply to balances exceeding the new $3 million threshold.

The calculations relating to the new tax rate are outlined in the government's factsheet: Better targeted superannuation concessions.

We’re here to help

If you have a general inquiry, please phone one of our team members on 1800 675 839 between 8am and 8pm AEST Mon-Fri or email us. If you need tax-related information you may wish to contact the tax office or an accountant.

This article is current at the date of publication and is subject to change. It contains general information and does not take account of your specific objectives, financial situation or needs or personal circumstances. You should seek professional financial advice, consider your own circumstances and read our Product Disclosure Statement (PDS) before making a decision about Prime Super. For a PDS and Target Market Determination call 1800 675 839 or visit the primesuper.com.au/pds. Prime Super Pty Ltd ABN 81 067 241 016 AFSL 219723 RSE L0000277 (Trustee), Prime Super ABN 60 562 335 823 RN 1000276.