Under the proposal outlined on Tuesday by Prime Minister Anthony Albanese and Treasurer Jim Chalmers, the concessional tax rate applied to future earnings of super balances above $3 million will be 30% from 1 July 2025.

At current, earnings from superannuation in the accumulation phase are taxed at a concessional rate of 15%. 

Prime Minister Anthony Albanese said the proposal does not change the fundamentals of Australia’s superannuation system. 

“99.5% of people with superannuation are unaffected by this reform, with around 80,000 people impacted by this,” Mr Albanese said.

The 2022-23 Treasury Tax Expenditure Statement reported superannuation tax breaks amounted to $48.2 billion in annual lost revenue for the Government.  

Treasurer Jim Chalmers said the proposed policy will improve the budget position by $2 billion in its first full year and $3.2 billion over five years.

This isn’t about limiting the amount of super you can accumulate, it's just about how generous the tax concessions are on it,” Mr Chalmers said. 

“100% of Australians with super will continue to receive generous tax breaks.

“If you are part of the one half of one per cent with more than $3 million, you will still get tax concessions, they will just be a little bit less generous.”

Speaking to Savings.com.au, WLTH Head of Lending Cat Mapusua said supporters of this change may argue that this would help address wealth inequality and generate revenue for the government, while opponents argue that it could discourage people from saving for retirement and have negative economic effects. 

"At WLTH, we think this presents an opportunity to engage with Australians about the importance of their super, particularly younger people for whom retirement is a long way away," Ms Mapusua said. 

"Investing in property has historically been considered a low risk, high return option for those planning for their retirement via an SMSF, however the recent tax changes may unravel this strategy."   

"It’s a common guideline that the average Aussie needs around $1 million in their super to retire comfortably at age 60, but given the rising cost of living and inflation compounding over time, this could easily jump past $3 million over decades, meaning a lot more Aussies will be sacrificing their nest egg to the tax man. 

"Overall, the debate about superannuation tax breaks highlights the challenges of balancing incentives for retirement savings with concerns about fairness and sustainability in the tax system.”


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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.99% p.a.
7.00% p.a.
$2,659
Principal & Interest
Variable
$0
$230
70%
Featured
  • Available for Purchase and Refinance. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
6.99% p.a.
7.10% p.a.
$2,659
Principal & Interest
Variable
$0
$1,490
70%
7.24% p.a.
7.25% p.a.
$2,726
Principal & Interest
Variable
$0
$0
70%
7.25% p.a.
7.65% p.a.
$2,729
Principal & Interest
Variable
$30
$1,190
80%
7.39% p.a.
7.47% p.a.
$2,767
Principal & Interest
Variable
$0
$995
80%
7.55% p.a.
7.94% p.a.
$2,811
Principal & Interest
Variable
$395
$1,920
80%
7.49% p.a.
7.50% p.a.
$2,794
Principal & Interest
Variable
$0
$230
80%
Featured
  • Available for Purchase and Refinance
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

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