The government approved two major changes to the taxation of superannuation on March 10 in an effort to make the system fairer and more sustainable.
The first bill that passed, the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026, will reduce tax breaks for individuals with larger super balances.
A higher rate of tax will apply to those with super balances above $3 million and an even higher tax rate will be applied to balances above $10 million.
The second bill that passed, the Superannuation (Building a Stronger and Fairer Super System) Imposition Bill 2026, will assist low-income earners improve their retirement savings.
These individuals will receive an increased government payment from the Low-Income Superannuation Tax Offset (LISTO), which ensures these individuals do not pay more tax on their super than on their wages.
The changes will be implemented from July 1, 2026.
Source: Parliament of Australia