Draft bills for large balances earnings tax changes

Treasury has released two draft bills to implement the government’s proposed reduction in earnings tax concessions for individuals with more than $3 million in super, but virtually all of the detail on how the tax will apply to defined benefits will be in regulations that are yet to be released.

This Super Update gives a valuable summary of the draft bills implementing the additional tax, which will be known as Division 296 tax.

We also provide details of Treasury’s consultation paper on payday super – the government’s proposal to align the payment of super contributions with employees’ salaries and wages. APRA’s draft updates to prudential standard SPS 515 and prudential practice guides SPG 515 and 516 are also analysed. We expect most trustees would generally be supportive of APRA’s proposed changes.

Our news in brief section includes draft legislation for an objective for superannuation, the 2023 performance test results, some warnings from APRA on operational risk management and the latest superannuation statistical publications. And, as usual, we provide a legislative update, and a guide to the key changes to superannuation and their effective dates.