Australia’s Proposed $3 Million Super Tax: How It Could Affect You (An example)
Hastings Street Beach Noosa QLD, Australia 8th July, 2025
From 1 July 2025, the Australian government proposes a new 15% tax on earnings linked to superannuation balances above $3 million. This could significantly impact high-net-worth expatriates repatriating to Australia.
A simple case study( John and Sarah, a professional Australian expatriate couple based in Hong Kong returning to Australia over next 12 months).
John has a foreign superannuation balance of $5 million—excluded from the new Australian super tax rules.
Sarah has an Australian superannuation balance of $3.2 million.
A break down of the impact on Sarah under the proposed rules:
Excess over threshold: $200,000 ($3.2 million-$3 million).
Estimated annual growth (7%): $224,000 ($3.2 million *7%)
Earnings on the excess portion: ~$14,000 ( $200,000*7%)
Additional tax: 15% of $14,000 = $2,100 annually
# John is not affected by the new rules because foreign super funds are excluded.
Other features
It is not deducted inside the fund; instead, the ATO will assess the member and the individual can either pay directly or request release from their super account.
This tax is calculated on the increase in total super balance (TSB), not just realised earnings.
This new tax is not paid by the superannuation fund—it is assessed and paid personally by the individual (much like the existing Australian Division 293 tax rules which imposes additional contribution tax when an individuals combined Division 293 income and Division 293 concessional contributions are $250,000 or more within an income year.
Regards
Dale Hoy
m) +61 419 364 994
Here are 2 ways I assist Australian expats plan their repatriation.
1 Download my checklist on the 7 key areas for Australian expatriates to start exploring with their advisor.
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