$3M Super Tax Clears Lower House Despite Push for Amendment, Senate Showdown Awaits

The $3m super cap tax passed the lower house late last week, after an overwhelming rejection of proposed amendment to the Division 296 tax.

This amendment was put forward by an independent MP to include indexation of the $3m threshold. While rejected, the bill still needs to contend with the Senate where government numbers are more reliant on others to get the bill passed as constructed.

There continues to be significant noise by the opposition and several independent senators regarding aspects of the bill, including lack of indexation and the inclusion of unrealised gains in the earnings calculation. It appears that compromise, on at least one of these aspects, may result in the bill otherwise being passed.

TAG Financial Services cautions all clients against any movements to avoid this tax at this time (eg. withdrawing funds from super) until such time as we have legislative certainty.

The looming federal election (which must happen before 30 June 2025) must also be contended with – as any bills not legislated will be binned, and a change in government will see this measure scrapped altogether.

You can read our previous blogs on this measure here:

Any Questions?

If you have any further questions don’t hesitate to reach out to us! Email us at team@tagfinancial.com.au or give us a call on 03 9886 0800.


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