Major Super and Tax Changes Confirmed as Labor Secures Mandate
The re-election of the Albanese Labor government clears the path for several significant changes to Australia’s superannuation system — developments that may be of interest to New Zealanders with cross-border super or retirement strategies.
The government will now proceed with its Division 296 tax proposal which will double the tax rate from 15% to 30% on super fund earnings for balances over AUD$3 million. A key controversy lies in its inclusion of unrealised capital gains, a move that has drawn concern across the financial services sector.
Labor’s win also cements support for:
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Stage 3 income tax cuts which will see the lowest marginal tax rate reduced from 16% to 15% in 2026, then to 14% in 2027.
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The Delivering Better Financial Outcomes reforms enabling super funds to provide more personalised financial advice to members on topics such as investments, retirement options and insurance.
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The shelving of the Coalition’s early access to super for housing policy which is now off the table for at least the next three years.
While legislation will still require Senate approval, Labor can now argue it has an electoral mandate for its agenda.
Cross-border implications
With increasing integration between Australia and New Zealand’s retirement systems under the Trans-Tasman portability arrangements, these updates may have financial planning consequences for NZ citizens with Australian super balances.
- Learn more about the proposed policy Div 296 proposal
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