From 1 July 2025, a proposed new tax will apply to future
earnings on super balances above $3m.
The additional tax is not yet law, so there is no need to act right now – if enacted, the new tax will impact on earnings from 1 July 2025. However, planning will be essential to risk protect your position.
If you hold significant property or other illiquid assets in your superannuation fund, for example a farm or commercial property, it is the increase in value that is pivotal. The potential tax on these assets will be a key factor in determining whether they remain a viable asset of your superannuation fund (but not the only reason).
For super balances nearing or exceeding $3m, seek advice for your best options in understanding your tax obligations.
As Australia's highest marginal tax bracket impacts more individuals, a growing number of Australians face rising tax obligations due to "bracket creep," where wage growth outpaces tax rate adjustments. This trend is expected to persist, with tax-efficient strategies the backbone for financial advice to help individuals secure long-term wealth.
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The Taxable Payments Annual Report (TPAR) is a mandatory report for Australian businesses in certain industries to disclose contractor payments to the ATO by August 28 each year, ensuring accurate tax reporting.