<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/government" rel="" target="" title="federal government"><span>federal government</span></a><span> is taking a second crack at reforming </span><a href="https://www.9news.com.au/superannuation" rel="" target="" title="superannuation"><span>superannuation</span></a><span> in a move that would give more than a million low earners a retirement boost while hitting the nation's wealthiest with a higher </span><a href="https://www.9news.com.au/tax" rel="" target="" title="tax"><span>tax</span></a><span> rate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/jim-chalmers" rel="" target="" title="Treasurer Jim Chalmers"><span>Treasurer Jim Chalmers</span></a><span> this morning introduced the Better Targeted Superannuation Concessions bill to parliament.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If passed, the new laws would change how superannuation is taxed for two groups of </span><a href="https://www.9news.com.au/australia" rel="" target="" title="Australians"><span>Australians</span></a><span> at opposite ends of the wealth spectrum: about 90,000 people with the highest super balances, and roughly 1.3 million of the nation's lowest-paid workers.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>EPSTEIN FILES:</span></strong><span> </span><a href="https://www.9news.com.au/world/trump-told-police-in-mid-2000s-everyone-has-known-about-epsteins-misconduct/bac5dfc1-d0d4-4c62-9504-86d8bc92e0b8" target="_blank"><strong><span>Trump's bombshell claims about Epstein in mid-2000s revealed</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For the latter, the government is hoping to expand the threshold for the low-income superannuation tax offset (LISTO).</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In its current form, the LISTO offsets the tax paid on superannuation for anyone earning less than $37,000 a year, effectively ensuring super is still tax-effective for Australians on low incomes.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under the proposed new law, the threshold for the offset will be raised to the top of the second income tax bracket – which currently sits at $45,000 – covering an additional $1.3 million workers.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/federal-politics-superannuation-tax-changes/65f1d495-0758-4105-b2bb-4d4e11cee28f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to the Association of Superannuation Funds of Australia (ASFA), that change will deliver someone on $44,000 a year close to an extra $50,000 in their super balance by the time they retire.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>WATCH:</span></strong><span> </span><a href="https://www.9news.com.au/world/nancy-guthrie-kidnapping-pictures-of-suspect-released-fbi-us/bf45a55f-6e64-4d61-be29-83155b0f47d3" target="_blank"><strong><span>Chilling images of man on doorstep of US TV anchor's missing mum</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Our reforms to the low-income superannuation tax offset will help deliver a more secure retirement for more than a million Australians, mainly young people and women," Chalmers said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"These changes will help make the super system fairer from top to bottom."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Alongside the higher LISTO offset, the bill also increases the tax rate on superannuation earnings for accounts with more than $3 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This will impact the top 0.3 per cent of super account holders – a total of about 90,000 people.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Instead of the current flat concessional tax rate of 15 per cent, the bill proposes raising the tax rate on earnings for super accounts with a balance of between $3 million and $10 million to 30 per cent, and to 40 per cent for accounts worth more than $10 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The increased tax rates won't apply to an account's entire earnings – only to the proportion of the balance over each of the new thresholds.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/wa-man-jailed-over-evil-plan-to-kidnap-and-abuse-young-girl-inside-his-home/3cc73e83-c59f-4e9a-9411-ff783bb55726" target="_blank"><strong><span>WA man jailed after building 'panic room' to hide kidnapped girl</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Combined, the changes will generate about $1.6 billion in extra tax revenue for the federal budget per year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The introduction of today's bill comes after an aborted attempt to pass similar legislation during the last parliament and following May's federal election, </span><a href="https://www.9news.com.au/national/superannuation-tax-changes-questions-treasurer-jim-chalmers/947b7c7a-116d-4777-a9ff-553c5278d8aa" rel="" target="" title="when the government faced significant criticism"><span>when the government faced significant criticism</span></a><span>, particularly on the proposal to tax unrealised gains and a refusal to index the thresholds for the higher tax rates.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Both of those elements of the laws have since been scrapped – the current bill only includes a higher tax for realised earnings, and the $3 million and $10 million thresholds will be indexed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Despite the changes, the passage of the current bill is uncertain. The Coalition opposes the changes, meaning the government will require support from the Greens to get the laws through the Senate.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>MORE TAX CHANGES:</span></strong><span> </span><a href="https://www.9news.com.au/national/capital-gains-tax-discount-australia-speculation-overhaul-federal-budget-2026/1fcd9f5b-370a-4045-a4c3-c00c4dbec466" rel="" target="" title=""><strong><span>$23 billion break could be overhauled in matter of months</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>According to the </span><a href="https://www.afr.com/politics/federal/greens-demand-chalmers-squeeze-more-from-mega-super-accounts-20260210-p5o14s" rel="" target="" title="Australian Financial Review"><em><span>Australian Financial Review</span></em></a><span>, the minor party could demand more stringent measures targeting wealthy accounts in exchange for its backing.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, ASFA has encouraged the Greens and opposition to back the legislation.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Together, these changes make super tax settings fairer and more sustainable," chief executive Mary Delahunty said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I encourage the parliament to pass the legislation without delay. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Aussie workers on low incomes cannot wait another day for the fairness that this package delivers to them."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If passed, the higher tax rates on wealthy accounts will come into effect on July 1, while the LISTO boost will follow a year later.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>