Tax concessions for super set to change for 80,000
CHANGES TO SUPERANNUATION TAX BREAKS
* The Albanese government argues growing costs in defence, health, aged care and the NDIS, and servicing massive debt, require new thinking on superannuation.
* From 2025/26, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent, pending the passing of legislation.
* This will apply to about 80,000 people, who will continue to benefit from the 15 per cent tax rate on earnings from the $3 million below the threshold.
* It does not impose a limit on the size of superannuation account balances in the accumulation phase and it applies to future earnings.
* The government will soon be consulting on the legislation to enable this to happen.
* It is expected to generate revenue of about $2 billion in its first full year.
* Treasury figures show the revenue foregone from superannuation tax concessions amounts to about $50 billion a year.
* The cost of these concessions is projected to exceed the cost of the age pension by 2050.