{"id":209786,"date":"2025-10-13T08:51:07","date_gmt":"2025-10-13T08:51:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/209786\/"},"modified":"2025-10-13T08:51:07","modified_gmt":"2025-10-13T08:51:07","slug":"federal-treasurer-jim-chalmers-announces-massive-changes-to-superannuation","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/209786\/","title":{"rendered":"Federal Treasurer Jim Chalmers announces massive changes to superannuation"},"content":{"rendered":"

Treasurer Jim Chalmers<\/a> has announced changes to the federal government\u2019s proposed taxes on superannuation<\/a>.<\/p>\n

Chalmers revealed on Monday that the Labor cabinet had agreed on reworking the scheme which would see individuals with more than $3 million in super being taxed<\/a>.<\/p>\n

The treasurer said the government was prepared to change the proposal \u201cin order to get it through parliament\u201d.<\/p>\n

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\u201cThese are sensible changes which take more than two years of feedback into account,\u201d Chalmers said.<\/p>\n

\u201cWe have worked through the issues and found another way to deliver on the same objective.<\/p>\n

Included in the changes is the $3 million threshold \u2014 incurring a 30 per cent tax rate \u2014 now being indexed, meaning fewer Australians will be caught in the bracket in the future.<\/p>\n

A new $10 million threshold \u2014 also indexed \u2014 will also be implemented, with those in the new bracket receiving a 40 per cent tax rate.<\/p>\n

\u201cThis is still a concessional tax arraignment but it\u2019s better targeted,\u201d Chalmers said.<\/p>\n

\u201cIt will still only impact less than half a per cent of Australians … this means about 90,000 Australians next year will have more than $3 million in their super, and less than 8000 will have more than $10 million.<\/p>\n

Chalmers also said tax increases will no longer apply to unrealised capital gains, while a tax offset for workers earning up to $45,000 would be increased from $500 to $810.<\/p>\n

The change will lead to about $15,000 more in superannuation at the time of retirement for some 3.1 million Australians.<\/p>\n

He added that the reworked plan would raise less than the original proposal but relieve financial stress on low-income workers while adding \u201cbetter targeted concessions for the biggest balances\u201d.<\/p>\n

\u201cThis will make the superannuation<\/a> system fairer from top to bottom.\u201d<\/p>\n

All changes except those to low-income earners are expected to be introduced from July next year to allow for the government to engage with consultation and feedback.<\/p>\n

Chalmers added the government is continuing to work on making sure defined benefit schemes are counted and calculating realised capital gains both prior to and after the scheme is introduced.<\/p>\n

Former prime minister Paul Keating threw his support behind the reworked scheme, taking aim at changes made to superannuation by John Howard and Peter Costello in 2007.<\/p>\n

\u201cThe government and Treasurer Chalmers have spent well over a year seeking to divine a method whereby the Howard\/Costello runaway scheme could, with all reasonableness, be brought under control by setting new permissible limits and above which taxation applied at a higher rate,\u201d he said in a statement, The Guardian<\/a> reports.<\/p>\n

\u201cThe Treasurer\u2019s success in working through and resolving this impasse will now mean that superannuation accumulations will be successfully taxed but taxed only on a basis of realisation, but more than that, taxed at a new limit and at a higher rate, restoring much needed equity following the Howard\/Costello rampage of 2007.<\/p>\n

\u201cImportantly, these decisions solidify superannuation tax arrangements in a manner the community can now rely upon for the long-term security of their retirement savings and with it, their peace of mind.\u201d<\/p>\n

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<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Treasurer Jim Chalmers has announced changes to the federal government\u2019s proposed taxes on superannuation. Chalmers revealed on Monday…\n","protected":false},"author":2,"featured_media":209787,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,2322,186,1625,44,184,185,84,5792],"class_list":["post-209786","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-federal-politics","tag-finance","tag-lifestyle","tag-news","tag-personal-finance","tag-personalfinance","tag-politics","tag-superannuation"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/209786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=209786"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/209786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/209787"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=209786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=209786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=209786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}