Global Daily Tax News, Australia Releases Draft Laws For Superannuation Hikes For Top Earners, (Dec 24, 2025)

The Australian Government has launched a consultation on draft legislation to amend the superannuation tax rules, based on changes announced in October 2025.

The Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2025 would reduce the tax concessions for people with total super balances over AUD3m. They would impose new taxes under a new Division 296 of the Income Tax Assessment Act 1997.

The Bill includes:

• adding a second threshold with a headline rate of 40 percent – this rate will apply to earnings on the part of an individual's total super balance above AUD10m;

• indexing the thresholds consistent with the approach for the transfer balance cap;

• moving to a realized earnings approach that aligns with existing income tax concepts;

• changes to exclude capital gains accrued before the start of the policy;

• applying commensurate treatment to defined benefits; and

• delaying the start date to July 1, 2026.

As well as issuing the draft legislation, the Government has issued explanatory materials and additional guidance.