Aussie Super sector breathes sigh of relief after Trump administration axes ‘revenge’ tax

Australia’s Super sector has avoided a US-proposed “revenge” tax targeting foreign investors, after the Trump administration walked back the tough talk on the policy.

Australia’s Super sector has breathed a sigh of relief after the Trump administration walked back a proposed “revenge” tax for foreign investors, which would have wiped billions of dollars.

US Treasury Secretary Scott Bessent confirmed overnight he struck a deal with countries tightening taxes on multinationals “that defends American interests”.

Under the international taxation rules agreed by 140 governments, including the former Biden administration, multinational companies would pay a minimum 15 per cent tax regardless of where their global headquarters are.

On his first day as president, Donald Trump withdrew the US from the agreement and threatened retaliatory duties on any country that imposed the minimum multinational tax.

US Treasury Secretary Scott Bessent says the Trump administration is axing its proposed ‘revenge’ tax. Picture: Jim Watson / AFP

“After months of productive dialogue with other countries on the (Organisation for Economic Co-operation and Development) Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests,” Mr Bessent posted on social media.

“OECD Pillar 2 taxes will not apply to U.S. companies, and we will work cooperatively to implement this agreement across the OECD-G20 Inclusive Framework in coming weeks and months.”

He added that he “asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill”.

Had a deal not been reached, nearly half a trillion US dollars in Australian super investments could have been impacted.

After months of productive dialogue with other countries on the OECD Global Tax Deal, we will announce a joint understanding among G7 countries that defends American interests. President Trump paved the way for this historic achievement. On January 20, the President issued two…

— Treasury Secretary Scott Bessent (@SecScottBessent) June 26, 2025

The Association of Superannuation Funds of Australia (ASFA) said on Friday it was “a really welcome step from the US Treasury Secretary”.

“There’s still a way to go – the amendments need to be made by lawmakers,” chief policy officer James Koval said.

“There are a number of other amendments under consideration.

“This section of the legislation would have changed the risk return profile of investment in the US, which would have been a poor outcome for all involved.

“The superannuation sector has around USD$450 billion invested in the United States, the single largest market outside of Australia.

“This is money invested in US infrastructure, equities, bonds, and other areas.”

Prime Minister Anthony Albanese says he raised Australia’s concerns with US Treasury Secretary Scott Bessent on the sidelines of the G7 Summit. Picture: Richard Dobson / NewsWire

Anthony Albanese earlier also welcomed the update, saying he raised Australia’s concerns with Mr Bessent on the sidelines of the G7 Summit in Canada last week.

“This would adversely impacted on Australian investment if it had have been implemented, particularly on investment from superannuation companies,” the Prime Minister told reporters.

“And one of the things that we held earlier this year in Washington DC was a round table of Australian investment funds who are willing and keen to invest in the United States – just one way in which the Australia US economic relationship is an important one.”

Originally published as Aussie Super sector breathes sigh of relief after Trump administration axes ‘revenge’ tax