Labor plans toincrease the tax on the earnings of super balances of more than $3 million from 15 per cent to 30 per cent from mid-2025,affecting about 80,000 or 0.5 per cent of account holders. In its first full year of operation,the change is forecast to raise $2.3 billion.
It has come under fire for not planning to index the $3 million threshold. That criticism has increased since Chalmers and Finance Minister Katy Gallagher revealed that by the early 2050sabout 10 per cent of people will be affected by the change.
Shadow treasurer Angus Taylor accused Chalmers of being “very,very tricky” by not admitting more people would be affected because of the lack of threshold indexation.
But Chalmers said Coalition superannuation changes would affect a substantially larger number of people as it had failed to index its own reforms.
In 2017,despite strong resistance from within the Liberal Party,the Coalition government introduceda string of changes aimed at reducing the cost of superannuation concessions.
This included a $1.6 million super transfer balance cap that,due to indexation,will reach $1.9 million with the start of the 2023-24 financial year.