The tax rate for superannuation accounts with balances of more than $3 million will double to 30 per cent from 2025. 

Prime Minister Anthony Albanese and Treasurer Jim Chalmers confirmed the change in a joint press conference this morning.

The new rules, which will affect less than 80,000 people, will apply from July 1, 2025 and will not be retrospective.

Prime Minister Anthony Albanese said the changes are needed to prop up the budget.

“Since coming to government, we’ve been upfront about the challenges facing the economy and the budget,” a statement read.

“We inherited a trillion dollars of debt as well as growing spending pressures in defence, health, aged care and the NDIS.

“These challenges mean we need to make responsible budget choices to ensure generous superannuation tax breaks are better targeted and sustainable.”

Finance reporter Evan Lucas told Bill McDonald the move will likely generate less capital than the federal government says.

“The government is trying to tell you it’s going to generate about $2 billion in its first year,” he said. “It’s more likely to generate $1-, $1.5 [billion].”

Press PLAY below to hear why Evan Lucas says this isn’t the only change to super on the cards 

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