Super Changes You Should Know About (Without the Jargon)

Recent government changes to Australia’s superannuation system are designed to make things “fairer”—but what does that actually mean for you?

Let’s break it down in simple terms.

1. Higher Taxes on Very Large Super Balances

One of the biggest changes targets people with very high super balances (over $3 million).

From 1 July 2026:

• Earnings on super balances above $3 million will be taxed more heavily

• The tax rate on that portion can increase to 30% (instead of 15%)

• For balances above $10 million, the tax could be even higher (up to 40%)

? Importantly, this only applies to the amount above the threshold, not your entire balance.

? The key takeaway:
This change is aimed at a very small group of Australians (around 0.3%), so most people won’t be directly affected.

2. More Support for Lower-Income Earners

At the same time, the government is increasing support for people on lower incomes through the Low Income Super Tax Offset (LISTO).

Key changes:

• Income threshold increasing from $37,000 to $45,000

• Maximum government contribution increasing from $500 to $810

• Around 3 million Australians could benefit

? What this means:
If you’re a lower-income earner, you may receive more money added to your super by the government, helping boost your retirement savings.

3. The Big Picture – What the Government Is Trying to Do

These changes are part of a broader shift:

• Reduce tax concessions for people with very large super balances

• Increase support for lower-income Australians

• Make the system more sustainable over time

In simple terms:
? Less benefit at the very top
? More support at the lower end

4. What Does This Mean for You?

For most Australians:

• No immediate impact if your super is under $3 million

• Potential benefits if you’re a lower-income earner

• Ongoing importance of having the right strategy in place

For higher net worth individuals:

• These changes may affect tax efficiency of super

• It becomes more important to review:

  • Contribution strategies

  • Investment structures

  • Retirement planning

Final Thoughts

Superannuation rules are constantly evolving—and even small changes can have a long-term impact on your retirement.

If you’re unsure how these changes apply to you, it’s worth getting clarity early.

? Visit our website and book a Financial Assessment if you’d like to understand how these changes affect your personal situation.