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Proposed Superannuation Changes Outlined by Australian Government

The information in this blog contains general advice and is provided by Hood Sweeney Securities Pty Ltd, AFSL 220897, ABN 40 081 455 165. That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. Please refer to our FSG (available at for contact information and information about remuneration and associations with product issuers.

The Australian Government has announced a plan to tax earnings on superannuation balances above $3Million by an additional 15 percent.

If legislated, this measure would commence 1 July 2025 and apply to the 2025-26 financial year onwards.

Individuals with Total Superannuation Balances (TSBs) above $3Million at the end of a financial year will be notified of their liability by the Australian Tax Office (ATO). The additional tax will apply only to the proportion of earnings corresponding to balances above the $3Million threshold.

The ATO will calculate the additional tax using TSB details which are already required to be reported to them and capture an individual’s TSB across multiple superannuation accounts if they have more than one.

Earnings will be calculated with reference to the difference in TSB at the beginning and end of the financial year, adjusting for withdrawals and contributions.

The calculation of earnings includes all notional (unrealised) gains and losses, similar to how superannuation funds currently calculate members’ interest. Negative earnings will be able to be carried forward and offset against this tax in future years’ tax liabilities.

This tax will be separate to an individual’s personal income tax and individuals will have the choice of paying the tax out-of-pocket or from their superannuation fund, and to elect the fund from which the tax is paid if they have multiple funds.

Like all changes to superannuation tax laws, this measure would need to pass both Houses of Parliament and receive Royal Assent before becoming law.

At Hood Sweeney Securities (AFSL 220897 ABN 40 081 455 165) we keep informed about changes in the legislative landscape which could impact our clients and their financial strategies.

Consider speaking to one of our Representative Financial Planners about strategies available to equalise superannuation balances for a couple to assist with retirement planning and to be prepared to manage changes in legislation.

You can ring our Financial Planning team on 1300 764 200 or email your enquiry to and we will get in touch.

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