On 13 October 2025, the Australian Government announced they were making practical changes to the design and implementation of the better targeted superannuation concessions measure that was previously announced on 28 February 2023. The measure is intended to reduce tax concessions for individuals with a total super balance above $3 million from 1 July 2026.
This measure is now law.
From 1 July 2026 tax concessions for individuals with a total super balance (TSB) above the LSBT will be reduced.
If your TSB exceeds the LSBT, you will be subject to tax of 15% on the proportion of your earnings relating to your TSB that exceeds the LSBT.
If your TSB exceeds the very large super balance threshold (VLSBT), you will be subject to an additional tax of 10% on the proportion of your earnings relating to your TSB that exceeds the VLSBT.
For the 2026-27 financial year, the LSBT will be $3 million and the VLSBT will be $10 million. These thresholds will be indexed in line with CPI.
The law also changes the definition of total super balance and introduces a new concept called total super balance value.
The Building a Stronger and Fairer Super System Act 2026 – Draft RegulationsExternal Link is open for consultation, closing 7 April 2026.
More information
- Reforms to support low-income workers and build a stronger super systemExternal Link
- Better Targeted Superannuation Concessions changesExternal Link
- Building a Stronger and Fairer Super System Act 2026 – Draft RegulationsExternal Link. Consultation closes on 7 April 2026.
- Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026External Link
- Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026External Link