On 3 October 2023 the Federal Government released draft legislation to reduce the tax concessions available to individuals with superannuation balances above $3 million, from 1 July 2025.

Under the proposed changes, the concessional tax rates applying to superannuation earnings on an individual’s total superannuation balance (TSB) above $3 million will be up to 30 per cent, an increase from the current 15 per cent.

This increased tax rate will only be applied to the earnings accredited to the balance over $3M.

We are awaiting the decision on the proposal and will keep our clients informed of how this will impact them.