Australians with more than $3 million (US$2.02 million) stowed away in their pension funds (superannuation) will see tax breaks reduced for money over that benchmark under a new Labor government policy announced on Feb. 28.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers say the move will affect 0.5 percent of the population—around 80,000 individuals—while 99.5 percent of Australians will be unaffected.
The policy, which starts from 2025-26, effectively doubles the tax rate for superannuation holders from the normal 15 percent to 30 percent.
The move is estimated to generate $2 billion of extra revenue for the government.
“We inherited $1 trillion of debt, which is getting more and more expensive to service as interest rates go up,” Treasurer Chalmers told reporters in Canberra….