iscover Superannuation tax changes finally pass both houses
TaxLegislation to reduce the tax concessions available to individuals with large superannuation balances has now been passed through both houses.
The bills to reduce the concessions available to superannuation members with balances above $3 million have now been passed by both the House of Representatives and the Senate, with the Greens agreeing to support the measure in exchange for more substantial tax reform.
The Senate passed both the Building a Stronger and Fairer Super System Bill 2026 and Building a Stronger and Fairer Super System Imposition Bill 2026 on Tuesday night, with the bills now awaiting Royal Assent.
The legislation imposes a tax of 15 per cent on earnings based on the percentage of the total super balance exceeding the $3 million threshold and a further 10 per cent on earnings based on the percentage of the total super balance exceeding the $10 million threshold.
In a statement yesterday, Greens Economic Justice spokesperson Senator Nick McKim said the Greens would support the passage of the bill as a "downpayment on genuine, progressive tax reform in the budget".
McKim said the government had a once-in-a-generation opportunity for ambitious tax reform given the current composition of the House of representatives and the Senate.
“There is a massive Labor majority in the House of Representatives, the Opposition is a rabble, and the numbers are there in the senate as long as Labor shows courage. The only limit is Labor's level of ambition," he said.
“Labor is standing in front of an open goal - if they bring reform that would rein in spiralling inequality and the housing crisis, they will have the Greens' support to get it done. The only obstacle to real change is Labor.”
The Greens believe the current tax system has turbo-charged the housing crisis, wealth inequality and deepened the intergenerational divide.
"We expect bold tax reform so young people and working Australians are not left carrying the load while the super-wealthy enjoy generous tax concessions on their income from assets," said McKim.
The Division 296 tax changes, he said, demonstrated how "completely and utterly broken the tax system was".
“Under these changes, a $5 million super account will still face a 14 per cent tax rate on capital gains. Meanwhile, a nurse or bartender earning $20,000 a year pays 16 cents on every extra dollar earned," he said.
“Right now, the ten richest super accounts in Australia hold an average of $423 million each, and even those accounts will still pay a lower tax rate on capital gains than a full-time worker on the minimum wage.
“Our tax system is turbocharging intergenerational inequality, and unfortunately this bill barely scratches the surface.”
The Opposition opposed the superannuation tax changes, with Shadow Minister for Finance Claire Chandler stating that the changes risk creating "instability and unpredictability in the superannuation system".
"Australians deserve stability in the rules that govern our retirement savings," said Chandler.
"They deserve confidence that when they work hard, when they save diligently and when they place their hard earned income into superannuation the government will not constantly change the rules of the game."
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
