Australia revises super tax plan to tax only realised earnings

Treasurer Jim Chalmers on Monday unveiled a revised plan to tighten tax concessions on very large superannuation balances, abandoning a contested proposal to tax unrealised gains and adding a higher top rate while delaying the start of the measures. Under the updated design, earnings on balances above $3 million will be taxed at a total concessional rate of 30 per cent, balances above $10 million will face a 40 per cent rate, both thresholds will be indexed, and the changes will take effect from July 1, 2026. The government also expanded the low‑income superannuation tax offset.

Chalmers said the government would tax only realised earnings, addressing concerns that taxing unrealised gains could hit owners of illiquid assets such as commercial property or farmland held in self‑managed super funds. He told reporters the government had listened to feedback and adjusted the policy to achieve the same objectives while reducing unintended impacts. "We always try to take feedback seriously... We found another way to satisfy the same objectives," he said.

The revised measures maintain the previously proposed increase in the effective earnings tax on balances above $3 million from the...