Wealthy Australians Brace for a New Tax on Retirement Savings

Australia is forging ahead with a new tax on its richest retirement savers amid concerns that the country’s A$4.1 trillion ($2.7 trillion) pensions system is becoming a high-wealth accumulation vehicle.

The Labor government plans to slap an extra 15% levy on profits from pension balances above A$3 million, in a change likely to impact around 80,000 savers. That’s on top of the 15% tax that they — and most Australian workers — already typically pay on investment earnings in their superannuation accounts.

Labor first unveiled the proposal in 2023, promising it wouldn’t become law until after the 2025 election. But ...