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Labor plans to tax rich super

Australians with big superannuation nest eggs face paying tax on their retirement earnings as part of a suite of Labor policies that would reap $14 billion over 10 years.

Under policy changes to be announced today by Opposition Leader Bill Shorten, superannuants would pay 15 per cent tax on earnings above $75,000.

Assuming an average rate of return of 5 per cent, this measure would affect only those who had more than $1.5 million in their superannuation accounts, or about 60,000 people.

The policy, worth $9.2 billion over a decade, would not affect age pensioners because their basic income test - for singles and partnered - is below the $75,000 threshold.

Capital gains would be grandfathered under the proposal.

Labor also plans to ensure similar concessions are reduced for defined benefit superannuation schemes.

It will remove the 10 per cent tax offset for income above $75,000, affecting about 9500 people.

The Association of Superannuation Funds of Australia recently highlighted how the tax-free status of superannuation earnings was disproportionately beneficial to high-income earners.

For example, ASFA found 475 people with super balances of more than $10 million were earning tax-free incomes of $1.5 million or more.

Separately, Labor proposes reducing the $300,000 higher income superannuation charge threshold to $250,000 to force an extra 110,000 people to pay more tax.

This policy would raise $5.1 billion over 10 years, Labor calculated.

Mr Shorten said the changes were not only responsible and fair but would improve the integrity of Australia's pensions and superannuation system.

He promised to make no more changes to the superannuation system.

"We believe these changes are all that are needed to ensure sustainability at the very top end of our superannuation system," he said.

"If we are elected these are the final and only changes we will make."