Winners, Losers & How to Position Yourself in the New Super Era

The revised superannuation tax rules have landed, and they redefine what it means to build wealth inside super. The key: adapt your strategy, or risk falling behind.

Here are the headline changes:

• A 30 per cent tax on super earnings for balances above $3 million, up from 15 per cent
• A 40 per cent tax for balances above $10 million
• Indexation of both thresholds to inflation
• Removal of the tax on unrealised capital gains
• Strengthened support for low-income earners via LISTO changes

Treasurer Chalmers said: “We have worked through the issues and found another way to deliver on the same objective… This is still a concessional tax arrangement but it’s better targeted.”

Winners

Young wealth builders: With indexation, you might avoid ever hitting the threshold.

Owners of illiquid assets in SMSFs: You’ll only be taxed when you realise gains, giving you more strategic control.

Lower-income workers: The LISTO boost and threshold raise could mean tens of thousands of dollars more at retirement.

Fairness proponents: As The Australia Institute noted: “The proposed changes would affect only 80,000 of the around 17 million people with a super account… the vast majority will never hit $3 million.”

Those who must act

While fewer in number, the 8,000+ Australians with balances above $10 million will pay more tax and will face more complexity. And even if you’re not there yet, the shifting rules mean strategic foresight is now a must.

Your game plan

If your balance is approaching $3 million: adopt a “threshold-management” mindset. Timing, asset mix, and liquidity matter.

If you hold property or illiquid assets in a super fund: align your exit strategy with the tax timing rules.

If you’re a younger or mid-career professional: this is your window of advantage. The threshold moves further away with indexation.

If you’re working with an adviser: now is the time to review your super structure, contribution strategy and asset allocation through this new lens.

In a landscape of change, the difference between being passive and being strategic will determine who wins. The system now rewards those who anticipate, prepare and adapt, not those who wait.