Tax Alert - Changes to double concessional tax rate on earnings from super balances over $3 million

Lowe Lippmann Chartered Accountants

Changes to double concessional tax rate on earnings from super balances over $3 million


The Government has announced plans to increase the concessional tax rate from 15% to 30% on superannuation earnings from superannuation fund balances over $3 million from 1 July 2025.


The changes are planned to begin on 1 July 2025, just after the next federal election. Treasurer Jim Chalmers said the timing of the introduction will be “allowing Australians to go to the polls on the issue”.

This announcement does not impose a limit on the size of superannuation account balances in the accumulation phase, and only applies to future earnings, with the changes not being retrospective before 1 July 2025.


It was confirmed that there are no current plans to annually index the $3 million threshold chosen for this announcement, meaning the level at which the higher tax rate of 30% will be levied would not rise over time.

It is relevant to note this announcement is likely to impact less than 1% of all superannuation fund balances in Australia, which is approximately 80,000 individuals. Furthermore, the fundamentals of the superannuation system are not being altered in any other way.


We note that this proposed change potentially marks a seismic shift in superannuation for some of our clients. However, there is a lot of water to go under the bridge between now and the proposed commencement date of this legislation.


We will continue to keep you informed of any major developments as they occur.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

Liability limited by a scheme approved under Professional Standards LegislationNew Paragraph

Tax Alert - High Court special leave application granted to appeal Bendel Case decision

June 13, 2025
High Court special leave application granted to appeal Bendel Case decision The Australian Taxation Office has been granted special leave to appeal to the High Court from the Full Federal Court decision in FCT v Bendel [2025] FCAFC 15. During March 2025 we released a Tax Alert ( see here ) explaining the current view of the ATO following the Full Federal Court decision that an unpaid present entitlement (or UPE) owed by a discretionary trust to a corporate beneficiary is not a “loan” for Division 7A purposes. The ATO also issued an Interim Decision Impact Statement ( see here ) in response to the Full Federal Court decision, providing information for taxpayers and advisers in relation to the details of the case and issues decided by the court.

Practice Update – June 2025

June 10, 2025
Year-end tax checklists for Individuals and Businesses We have recently prepared two Year End Checklists which help explain some common strategies that may be considered for Individual and Businesses taxpayers. Year End Checklist for Individuals – click here Year End Checklist for Businesses – click here

2024-2025 Business Year End Checklist

June 10, 2025
Many business clients like to review their tax position before the end of the income year and evaluate any strategies that may be available to legitimately reduce their tax. Traditionally, year-end tax planning for profitable small businesses is based around accelerating deductions and deferring income.  The Year End Checklist in the link below explains some common strategies that may be considered for all business taxpayers.
More Posts