Now lawWork & Super Introduced in the House of Representatives, 11 Feb 2026

People with over $3 million in super pay more tax

This short law sets the tax rates for the new tax on very large super balances. It affects fewer than 1 in 200 people with super, from 1 July 2026.

Official name: Superannuation (Building a Stronger and Fairer Super System) Imposition Bill 2026

Who it affects

• People with more than $3 million in super: You pay an extra 15 per cent tax on part of your earnings. The part matches the share of your balance over $3 million.
• People with more than $10 million in super: You pay a further 10 per cent on the part of your earnings that matches the share of your balance over $10 million.
• People with less than $3 million in super: Nothing changes. What your super earns is still taxed at up to 15 per cent.
• Super funds: Funds must work out what each member's super earned and tell the tax office.

Super taxed at just 15%

Super is money saved for when you stop work. It is taxed lightly to help people save. Money a super fund earns, like interest, share payouts and rent, is taxed at up to 15 per cent. Most workers pay a higher rate on their wages.

The government says this tax break mostly helps people who are already well off. Treasury, the government's main money department, found the top 20 per cent of earners got about 55 per cent of the benefit in 2022-23.

The government says super is meant to pay for a decent life after work. It says super is not meant to be a way to build wealth.

The government first announced a tax on balances over $3 million in February 2023. Bills in 2023 died when Parliament ended.

In October 2025 it changed the plan after feedback. The new plan adds a second level at $10 million. Both cut-offs rise with prices. It only taxes money the fund has really received, or made from a sale.

Why there are two bills

The Constitution is Australia's founding rule book. Section 55 says a law that sets a tax can only deal with setting the tax. So the government split the plan in two.

The main bill sets out the rules. Its name is the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026. It covers who pays, how earnings are worked out, and how to pay. It also raised a super tax refund for low earners from 1 July 2027.

This bill does one job. It says the tax exists and sets its rates. Without it, the main bill's tax rules do not start.

The tax rates set

The tax is called Division 296 tax, after the part of the tax law it sits in. The person pays it, not the fund.

This bill sets a rate of 15 per cent on part of your earnings. That part matches the share of your total super above $3 million. It adds a further 10 per cent on the part that matches the share above $10 million.

Add the normal fund tax, and the top rate is up to 30 per cent for the slice between $3 million and $10 million. It is up to 40 per cent for the slice above $10 million.

Here is the government's own example. Jordan has $4 million in super at 30 June 2027. Jordan's super earned $100,000 that year.

A quarter of Jordan's balance is over $3 million. So a quarter of the earnings, $25,000, is taxed an extra 15 per cent. That is $3,750 of extra tax.

How limits change

The $3 million cut-off rises with the Consumer Price Index, which tracks prices. It moves in steps of $150,000. The $10 million cut-off rises in steps of $500,000.

The government says this means fewer people will be caught over time than under the first plan. It expects fewer than 0.5 per cent of people with super to be hit in 2026-27. Fewer than 0.1 per cent will pay the higher rate.

A safety clause

Section 6 of this bill says the tax does not apply to anyone the federal government has no power to tax.

This matters for some state judges and other office holders. The Constitution protects their pensions. Without this part, a court could throw out the whole law.

How you pay

The main bill sets the payment rules. The tax office works out what you owe and sends a notice. You have 84 days to pay. You can choose to have money taken out of your super to pay it.

Some people have an older kind of super that pays a set pension. For some of them, the tax can wait until the pension starts, with interest added.

Some people do not have to pay at all. These include children who get a super pension after a parent dies. They also include people whose super holds money paid for an injury.

Start date

The bill was brought in on 11 February 2026. The House of Representatives passed it on 5 March 2026. The Senate passed it on 10 March 2026. The Senate is the second house of Parliament, which checks bills.

The Governor-General signed it into law on 13 March 2026. The Governor-General is the King's stand-in in Australia. It became Act No. 9 of 2026.

The law started on the first day of the next three-month quarter. The tax applies from the 2026-27 tax year, which began on 1 July 2026. For that first year, only your balance on 30 June 2027 counts.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum
• Bills Digest

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