Does the higher rate apply to my whole super balance?

No. The higher superannuation tax applies to earnings linked to the portion of your balance above the thresholds. Earnings tied to A$3 million to A$10 million are taxed at 30%, earnings above A$10 million at 40%. Earnings below A$3 million continue under standard super tax rules.

How could this change affect SMSF investment strategy?

Higher rates reduce the net value of franking credits and raise the drag on income assets. Trustees may tilt toward global equities, quality bonds, and cash to steady after-tax returns. Keep strong liquidity for tax payments, review costs, and document decisions to meet compliance and audit expectations.

When will the new rules take effect?

Timing depends on Parliament passing the bill and Royal Assent. Start dates and transitional rules will be set in legislation and clarified by ATO guidance. Until then, treat the measures as near-term and run scenario analysis so you are ready once official dates are confirmed.

Will franking credits still offset my tax?

Yes. Franking credits can still reduce tax on Australian share dividends. However, as your applicable rate rises to 30% or 40% on portions of earnings, the net benefit of those credits falls. Review your dividend mix, distribution timing, and overall asset allocation to protect after-tax returns.

Could capital gains tax or negative gearing change this year?

The Greens have signalled interest in broader tax changes, but nothing is confirmed. Watch the May budget and any exposure drafts. Model scenarios for property and shares, but do not act on rumours. Adjust only when measures are legislated and official guidance sets the scope and timing.

Global Market Insights

Australia Superannuation Tax March 15: Greens Back Higher Rates

ByHuzaifa Zahoor March 14, 2026March 14, 2026

Australia’s superannuation tax is set to rise for very large balances after the Greens said they will support Labor’s plan. The deal clears the Senate path for near-term passage. Earnings on balances between A$3 million and A$10 million would face a 30% rate, while earnings above A$10 million would face 40%. High-balance SMSFs will likely pay more and may rethink asset mix, franking use, and cash flow. We explain who is affected, how the new tiers work, and the steps to prepare before the May budget.