Cordner Advisory Newsletter October 13th: Superannuation Tax Changes

October 13th Superannuation Tax Changes

Media announcements today indicate that the Federal Government is altering their proposed taxation changes for superannuation funds. As has been extensively reported, the original proposal was for there to be an additional 15% tax charged on superannuation earnings, including unrealised capital gains, on members with balances over $3 million. The changes announced in the media today are:

• The new tax rates will apply from 1 July 2026 (so 1 year later than originally announced);

• The $3million threshold at which the additional 15% tax applies will be indexed to increase with inflation;

• There will be a further 10% tax applied on earnings for members with balances over $10 million (this threshold will also be indexed), so an overall rate of 40% on those earnings; and

• Unrealised gains will not be taxed

We have consistently advised our clients to date to watch for changes and not take any drastic action in terms of selling or transferring assets or withdrawing member balances as we expected changes to the final legislation. This is what has transpired and these prosed changes appear to make the new taxes more acceptable and hence much more likely to pass parliament in current form. We will now engage with our clients more proactively to prepare for 1 July 2026 for those members likely to be impacted.

If you have any questions or concerns in the meantime, please do not hesitate to call our office on 07 5504 5700 or contact your director or client manager.