Richest super balances to be taxed at higher rates after Greens agree

The Greens have agreed to allow Labor’s plan to raise taxes on the largest superannuation balances to pass the Senate, ending a three-year political fight over concessions for wealthier retirees. The decision guarantees Labor the numbers to legislate the changes this week.

Under the changes, the concessional tax rate on earnings for balances between $3m and $10m will double from 15% to 30%, while balances above $10m will face a new 40% rate. The government also removed the proposal to tax unrealised capital gains, indexed the $3m and $10m thresholds to inflation, and will increase the low‑income superannuation tax offset from $500 to $810 and raise the eligibility threshold from $37,000 to $45,000 from 1 July 2027.

Greens treasury spokesperson Nick McKim said the move was a green light for Labor to pursue “bold reform” in the upcoming budget, including scaling back the capital gains tax discount and negative gearing.

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