After recent media speculation, the Labor Government has announced changes for taxpayers with more than $3 million in superannuation. From 1 July 2025 (which is after the next Federal Election), taxpayers with balances over $3 million will have their earnings on these balances taxed at 30% rather than the current tax rate of 15%.
The Government believes this will only impact around 80,000 taxpayers but there is no doubt it is a significant blow to the industry. Although the lead time before implementing the change is generous, this change will do nothing to allay the fears of many taxpayers that the rules for super are constantly changing and therefore investing in superannuation holds a bigger legislative risk than other classes of investments.
At this early stage, no details are known on how this will be implemented but no doubt this will be worked out in the coming years. If you have any queries on how this change might impact you, please do not hesitate to contact us