The Morning Edition Will the treasurer’s “humiliating” tax backflip help, or hurt you?
Oct 14, 2025
Shane Wright, a senior economics correspondent, dives into the recent political shift concerning Australia's superannuation tax plan. He explains the original proposal’s impact on wealthy Australians, the humiliating backflip by Treasurer Jim Chalmers, and reveals details about the new 40% tax rate for high earners. Shane evaluates whether these changes benefit the average Australian, especially low-wage workers. He also discusses potential future reforms and the budget implications of these significant adjustments.
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Original 2023 Super Plan
- The 2023 plan targeted accounts over $3 million and taxed unrealised gains, effectively doubling tax rates for a small group.
- That approach risked capturing many future workers because the $3m threshold was not indexed.
Major Elements Of The Backflip
- Jim Chalmers removed unrealised gains taxation and added indexation, delaying start by a year and changing scope.
- He also introduced a 40% rate above $10 million, narrowing the burden to ultra-wealthy accounts.
Claim The Increased Low-Income Offset
- Low Income Superannuation Tax Offset ( LISTO ) will rise from $500 to $810 and its threshold will lift to $45,000 by mid-2027.
- Check your pay and employer contributions to ensure you qualify and expect a larger super boost if eligible.