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

Super over $3 million taxed more, low earners get more back

This law raises tax on what super earns for people with more than $3 million in super. That is fewer than 0.5% of people. It also lifts the super tax refund for workers earning up to $45,000.

Official name: Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026

Who it affects

• People with more than $3 million in super: They pay extra tax on the share of their super earnings linked to the amount above $3 million.
• People with more than $10 million in super: They pay a further 10% on earnings linked to the amount above $10 million.
• Everyone with $3 million or less in super: Nothing changes. Their earnings are still taxed at up to 15% inside the fund.
• Workers earning $37,000 to $45,000: From July 2027 they can get the low earner super refund for the first time.
• Low earners already getting the refund: The top amount rises from $500 to $810. So the tax on the super paid in for them can be fully paid back.
• Self-managed super funds: Small funds can reset the starting value of what they own to 30 June 2026 for the new tax.

$60 billion in tax breaks

Super is money saved for when you stop work. Its full name is superannuation. The government gives it tax breaks to help people save. Earnings inside a super fund are taxed at up to 15%. That is lower than most people pay on wages.

The government says these tax breaks cost almost $60 billion a year. It says 55% of the gain goes to the top 20% of earners. Treasury is the main money department. It has said super tax breaks will cost more than the Age Pension by the 2040s. The Age Pension is the government payment for older people.

The government first announced a tax on balances over $3 million in February 2023. Its first bill would have taxed paper gains. Those are rises in value even if nothing was sold. That bill died when Parliament ended before the election. In October 2025 the government changed the plan after feedback. This law is the result.

Tax on large balances

The new tax is named after its section of the tax law, number 296. It applies to all the super a person has across every account. That includes big public funds, self-managed funds and super schemes for government workers.

Say your total is over $3 million. Part of your super earnings is then taxed an extra 15%. The part taxed matches the share of your balance above $3 million. Add the fund's own 15% tax, and that makes up to 30% on those earnings.

Say your total is over $10 million. There is a further 10% on earnings linked to the amount above $10 million. That makes up to 40% on that slice. Both limits rise each year with prices. They rise in steps of $150,000 and $500,000.

Here is the government's own example. Jordan has $4 million in super and earns $100,000 in a year. A quarter of the balance is above $3 million. So a quarter of the earnings, $25,000, is taxed at 15%. Jordan owes $3,750.

The government says this hits fewer than 0.5% of Australians with super in 2026-27. The higher rate above $10 million hits fewer than 0.1%.

Which earnings count

Each super fund works out its earnings. It reports each member's share to the Tax Office.

The Parliamentary Library works for all MPs and takes no side. It says only real earnings count. These are interest, share payouts and rent. They also include profits when something is actually sold. Rises in value are not taxed if nothing is sold.

If a fund loses money in a year, its earnings count as zero. To work out your balance, the tax uses your balance at the start or the end of the year. It picks whichever is higher. The government says this stops people moving money out just before 30 June to dodge the tax.

For the first year, 2026-27, only the balance on 30 June 2027 counts. Small funds, such as self-managed funds, can choose a reset. They can set the starting value of all they own to its market price on 30 June 2026. That way gains made before the tax began are not caught.

How the tax is paid

The person pays the tax, not the fund. The Tax Office sends a bill. The person has 84 days to pay. Within 60 days, they can choose to have money taken out of their super to pay it. There is no interest if they do.

Some people are left out. Children who get regular super payments after a parent died do not pay it. Nor do people whose super includes a payout for a serious injury. That money is meant to pay for their care.

Some older schemes pay a pension set by a formula. People in these schemes can delay paying until their pension starts, with interest. Special rules cover judges, the Governor-General, some state office holders and politicians in older schemes. Late payments cost extra interest.

Bigger refund for low earners

Low earners get a payment into their super. It pays back the 15% tax taken from the super their boss pays in. Without it, they would pay more tax on super than on their wages.

Right now you only get it if you earn $37,000 or less. The most you can get is $500. Those numbers have not moved. Over that time, the income level where you start paying income tax rose to $45,000. The super that bosses must pay rose to 12%.

From 1 July 2027, the income limit will match the level where income tax starts. That will be $45,000. The top amount will be set by a formula. It will be $810 in 2027-28.

Here is the government's example. Iris earns $44,500. Today Iris gets nothing, and the fund pays $801 tax on Iris's super. Under the new rules Iris gets $801 back.

The government says over 770,000 more people will be able to get the refund in 2027-28. It says 490,000 people will get a bigger payment.

Every super account now counted

The law changes how a person's total super is measured, so every Australian super account is counted.

There is already a tax on super paid in for high earners. The law makes clear it has always applied to Supreme Court judges in the Australian Capital Territory. That is the top court in the territory. That change is backdated to 2012-13. The government says it does not take away anyone's rights.

Start date

The government brought the bill into the House of Representatives on 11 February 2026. That is the house of Parliament where the government sits. A partner bill that sets the tax rate came with it. The House passed it on 5 March 2026. The Senate passed it on 10 March 2026.

The Governor-General signed it into law on 13 March 2026. The Governor-General is the King's representative in Australia. It is now Act No. 8 of 2026.

The tax on big balances applies from the tax year starting 1 July 2026. The bigger refund for low earners starts on 1 July 2027.

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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