Fraud Blocker

Superannuation Is No Longer Tax-Free in Australia [Read Now].

Article by WealthSafe.

Date Published: 22 Feb 2023

Well, it’s happened. As we suspected. Our worst fears were realized.

The Labor Government has decided to change the tax laws for our superannuation to top up the budget. The days of smart government to encourage the population to save for its retirement are over.


The government has decided to target the wealthy. How unoriginal.

Basically, earnings on superannuation assets supporting income streams above $100,000 will no longer be tax-free. As of 1 July 2014, all earnings on assets supporting income streams above $100,000 per annum will be taxed at 15%.  The change will not affect how withdrawals are taxed. For those over 60, withdrawals will continue to remain tax-free and tax concessions will still apply for those under 60.

This change will affect approximately 16,000 of Australia’s wealthy superannuation pensioners, who are all estimated to have superannuation balances of over $2,000,000.

There is, however, some good news.

Firstly, concessional caps for some superannuation members will be increased. Currently, the concessional contribution cap for individuals is $25,000. This cap will be increased so that:

  1. From 1 July 2013, taxpayers over 60 will have a concessional cap of $35,000.
  2. From 1 July 2014, taxpayers over 50 will have a concessional cap of $35,000.

It is expected that by July 2018, the general concession cap will reach $35,000.

Secondly, from July 2013, taxpayers who exceed their concessional contribution cap will be allowed to withdraw excess contributions from their super fund and only be taxed at the marginal rate. This is fantastic and less penalizing people who make a genuine mistake and miscalculate their contributions into their superannuation fund and pay too much.

Do you want more information on how it affects you?

At Wealth Safe, we’re here to help you with all your asset protection, tax planning, business structuring, and superannuation needs. We work with you to find the best strategy to keep your assets safe, slash your tax 100% legally, and put more money in your pocket.

Please feel free to visit us on our Facebook page at for more interesting articles, and tricks to reduce your tax and protect your assets.

To contact us, and get your complimentary copy of your book on how to slash your tax and protect your assets, complete our web form by clicking here. Or call us on 1300 669 336. One of our staff will be glad to assist you.

Book Your Free
Tax Saving Assessment.

Wealth Safe

Related Articles

View more tips & insights