Both financial thresholds will now be indexed, addressing worries that more Australians might fall into higher tax brackets over time due to bracket creep.

Chalmers highlighted “14 times more people will benefit from the lower income super changes than will be impacted by the better targeted concessions”.

What are the six superannuation changes?

1. From 1 July 2027, Australians earning between $28,000 and $45,000 will receive a $810 offset at tax time.
2. Superannuation balances over $10 million will be taxed at a 40 per cent concessional rate, alongside the existing proposal to tax balances over $3 million at 30 per cent.
3. Both the $3 million and $10 million thresholds will be indexed over time to address bracket creep.
4. The new changes will not apply to unrealised gains.
5. The changes will be delayed by a year, until July 2026, to allow for consultation, except for the lower income tax offset.
6. Extend existing constitutional tax exemptions for federal and state judges.

Greens accuse Labor of succumbing to ‘pressure’

Greens senator Sarah Hanson-Young said Chalmers had been forced to “weaken” his tax reform due to “pressure” from big businesses and the wealthiest, as the party welcomed tax relief for lower-income earners.

Greens senator Nick McKim criticized the government for lacking the resolve to impose higher taxes on the rich. Source: AAP / Mick Tsikas

However, ahead of reviewing the full legislation, Greens economic justice spokesperson Nick McKim said on Monday afternoon the changes demonstrated the Albanese government “doesn’t have the guts to tax big corporations and billionaires fairly”.