Liberal senator, Andrew Bragg, has cautioned that Labor’s proposed tax on high superannuation balances could eventually impact over 500,000 Australians, a figure that is six times more significant than what the government has estimated. Bragg remarks came after Prime Minister Anthony Albanese recently unveiled the plan to increase taxes on super accounts with more than $3 million from 15% to 30%, with effect from mid-2025. Meanwhile, Treasurer Jim Chalmers has said he does not plan to index the $3 million cap. According to modelling by the Financial Services Council on March 3, an unindexed $3 million cap at maturation would affect the superannuation savings of 204,000 Australians under 30 and 322,071 people aged over 30 by the time they reach retirement age, assuming 2.5% inflation per year.
Liberal Senator warns Labor’s $3m super threshold might affect 500k Australians.
