The Albanese government will increase the tax rate on super balances higher than $3 million dollars to 30 per cent.

In an announcement from the government on Tuesday, it said from the 2026 financial year the concessional tax rate will be applied to future earnings over the $3 million threshold.

Currently, earnings from super in the accumulation phase are taxed at a concessional rate of up to 15 per cent. This will continue for all superannuation accounts with balances below $3 million.

This is expected to apply to around 80,000 people, and they will continue to benefit from more generous tax breaks on contributions below the $3 million threshold.

This adjustment does not limit the size of super account balances in the accumulation phase. It also applies to future earnings and is not retrospective.

“The modest adjustment means 99.5 per cent of Australians with superannuation accounts will continue to receive the same generous tax breaks, and the 0.5 per cent of people with balances above $3 million will receive less generous tax breaks,” the joint statement said.

The adjustment to tax breaks for the biggest accounts is expected to generate revenue of about $2 billion in its first full year of revenue after the election.

The government will introduce enabling legislation to implement this adjustment as soon as possible.

Further consultation will be undertaken with the superannuation industry and other relevant stakeholders to settle the implementation of the measure, in addition to the already launched consultation on the purpose of super.

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