Support for the $3 million super tax is strong across the industry, but with the possible July 2025 start date nearing, focus is turning to a key flaw – the lack of indexation.
By Maja Garaca Djurdjevic | Investor Daily – May 26, 2025
Australia’s largest superannuation funds have thrown their support behind the government’s $3 million super tax but are urging Treasury to ensure the tax is indexed, warning that without adjustment, it risks capturing far more members over time than originally intended.
HESTA and Australian Retirement Trust (ART), two of the country’s biggest profit-to-member funds, have welcomed the Albanese government’s plan to apply a 30 per cent tax on earnings from super balances above $3 million, describing it as a move towards a fairer and more equitable retirement system. However, they argue the proposed threshold must be indexed to avoid unintended bracket creep.
