You may have seen recent news about the government’s proposed changes to how superannuation earnings are taxed for people with balances over $3 million. These proposals have sparked a lot of discussion and uncertainty, even among those who won’t be directly affected.

What’s Changing?
Starting 1 July 2026 (if passed into law), if your total super balance is above $3 million (per person), a new tax will apply – but only to actual income your super fund receives (such as interest, dividends, rent, and profits from assets that have been sold). You will not be taxed on “paper profits” or increases in value that haven’t been sold.

The proposed tax rates are:

• 15% for balances between $3 million and $10 million
• 25% for balances above $10 million

These tax rates will apply in addition to the superannuation concessional tax rate of 15% on taxable income.

Importantly, these thresholds will be indexed to inflation, so they’ll increase over time.

 What Does This Mean for You?

• If your super balance is below $3 million (per person) these changes won’t affect you.
• If your balance is above $3 million, or you’re likely to exceed it, rest assured we will contact you directly and provide tailored advice well before the changes take effect.

 Don’t Act Yet
It’s important to remember that these changes are still proposals – they are not yet law. The government is not planning to introduce this legislation into Parliament until 2026. We recommend that you do not make any changes to your superannuation arrangements in response to these announcements at this stage.