The proposal to increase superannuation tax on earnings on member balances > $3m from 15% to 30% (i.e. 30% tax rate on the proportion of earnings >$3M only) was introduced to parliament on 30 November 2023 and is unlikely to be debated until April 2024.
With considerable industry opposition to the lack of indexation to the $3M threshold and the proposed taxation of unrealised capital gains, we continue to recommend clients WATCH this space. For those impacted we will debate and advise you on the alternative strategy options to optimise your position once we know the final details given the possibility the current proposal could be modified before it is legislated.