There is a case to reform super tax breaks. But not this way

Australia’s tax breaks on retirement balances are generous. But the treasurer is going about reform the wrong way, experts say.

Treasurer Jim Chalmers tax grab will rake in $2.3 billion a year initially. Bryan Cook

John KehoeEconomics editor

May 23, 2025 – 2.12pm

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Superannuation tax concessions for older and wealthier Australians can be generous, particularly for earnings in retirement.

But Treasurer Jim Chalmers’ planned doubling of the tax to 30 per cent on earnings – including unrealised gains – from super balances above $3 million has caused a furore among self-managed super funds, big industry funds, former Labor prime minister Paul Keating, financial advisers and tax experts.

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John KehoeEconomics editorJohn Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.