The government has announced future earnings for super balances above $3m will be taxed at 30% from 2025-26. The concessional tax rate applied to future earnings for superannuation balances above $3 million will increase to 30%. The concessional tax rate on earnings from superannuation in the accumulation phase will remain at 15% up to $3m. From $3m onwards, the rate will increase to 30%.

The amendment applies to future earnings; it is not retrospective. With up to 80,000 people expected to be impacted by the measure, it will have an impact. The announcement doesn't mention any proposed changes to the transfer balance cap and the amount that a member can have in the tax-free retirement phase.

The general transfer balance cap (TBC) – the amount of money you can potentially hold in a tax-free retirement account, will increase by $200,000 on 1 July 2023 to $1.9 million. The TBC is indexed to the consumer price index each December.