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Australia is advancing a significant reform targeting the wealthiest holders of retirement savings, as the government moves to impose an additional tax on superannuation investment earnings exceeding AUD 3 million (approx. USD 2 million). This follows growing concerns that the nation’s AUD 4.1 trillion pension system is increasingly being used as a vehicle for wealth accumulation among high-net-worth individuals.
Under the new proposal introduced by the Labor government, an extra 15% levy will be applied on profits generated from pension balances above the AUD 3 million threshold. This surcharge comes on top of the standard 15% tax already imposed on most Australian workers’ superannuation investment returns.
It is estimated that around 80,000 affluent retirees and savers will be affected by the new measure. The policy aims to enhance the progressivity of the pension tax system and address perceptions of inequity in retirement tax benefits.
This development signals a broader global trend where governments are reassessing retirement savings taxation to balance fiscal sustainability with fair wealth distribution. For multinational businesses and high-net-worth individuals with Australian exposure, the changes necessitate careful review of retirement fund structures and tax planning strategies.
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