The Australian Government’s recently announced new measure imposing a 15% additional tax on individuals with more than $3 million in superannuation has raised concerns about its potential impact on every Australian’s retirement savings. This new tax is expected to commence from 1 July 2025 (i.e., the start of the 2026 income year) and will apply broadly to the annual movement in the value of an individual’s superannuation balance, adjusted for withdrawals and contributions.
While the initial impact of this tax is estimated to affect only 0.5% of people with money in superannuation, equivalent to around 80,000 individuals, the proposal does not currently allow for indexation of the $3 million threshold. This means that as inflation rises over time, the number of individuals impacted by this tax is expected to increase.
It is therefore crucial for every Australian with superannuation savings to be aware of this new measure, as it may impact them in the future. Those who are already near or above the $3 million threshold should consider seeking advice from a qualified accountant or financial advisor to explore potential strategies to mitigate its effects.
Furthermore, with the potential increase in the number of individuals impacted over time, it is essential to keep a close eye on any developments and updates related to this measure. Seeking the advice of a qualified professional is highly recommended to stay informed and understand the impact of this new tax on your retirement savings.
As an accounting firm, we are committed to keeping our clients informed about any changes that may impact their financial situation. If you have any concerns or questions about this new measure, please do not hesitate to reach out to us. We are here to help you navigate these changes and ensure that your financial future is secure.