Australian government super tax: Most Australians are far from being affected by new tax on Superannuation, ATO data shows
Chalmers has said Labor's legislation would not increase the $3 million threshold in line with inflation, meaning more people would be pushed past the cap in decades to come, and by which time that amount will not be worth as much in real terms.
Loading
Australian Council of Trade Unions secretary Sally McManus told Channel Nine's Today program this week that it would be 'a very long time into the future' before the average worker would be affected by the $3 million cap. McManus also said the threshold has 'got to be indexed' to make sure most people do not end up being hit by the new tax rate.
Calculations based on the latest ATO data, for example, suggest a surgeon – the highest income occupation in 2022-23 – earning the job's average salary of about $470,000 a year, and contributing 12 per cent to a super fund (returning an average of 5 per cent), would still have to work about 22 years to accumulate $3 million in superannuation. That includes an assumption that their wages grow at 3.5 per cent a year.
Under the same assumptions, an individual earning $180,000 would have to work 34 years before reaching the $3 million cap, and a person earning the median salary of $62,000 in 2022-23 would have to work five decades.
The data from the Tax Office shows the median super account balance for those earning more than $180,001 grew from nearly $304,000 in 2021-22 to just over $315,000 in 2022-23, while the overall median balance climbed from $57,900 to $60,000.
Grattan Institute Housing and Economics Security program director Joey Moloney, meanwhile, says that in 30 years' time, the $3 million threshold will still hit only the top 10 per cent of income earners, and the threshold – like ones for personal income tax – is likely to change under future governments even without indexation.
'There are people forecasting 30-, 40-plus years into the future as if this threshold will never change,' Moloney said. 'That strikes me as a very bold assumption because there'll be 10 electoral cycles in between that.'
Moloney also noted that 85 per cent of those with super balances over $3 million are aged over 60 and the super tax change would reduce the pressure on younger Australians because older, wealthier Australians would shoulder more of the burden of budget repair and the ageing population.
Latest data from the ATO shows men aged 60 to 64 and women aged 70 to 74 have the biggest median super balances, at just under $225,000, with both seeing a drop-off in the size of their nest eggs after 75.
Men in the ACT, Western Australia and South Australia had the highest median super balances in 2022-23, while among women, median super balances were highest in the ACT, South Australia and Tasmania.
Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
37 minutes ago
- West Australian
‘Disappointing, frustrating': How Qantas data breach exposes deep flaws in Australia's cyber defences
The cyberattack targeting the personal data of customers with Qantas is the latest in a string of breaches affecting millions of Australians, as hackers target major companies and exploit weak spots in the systems they rely on. The breach, detected by the Flying Kangaroo on June 30, originated from a third-party customer servicing platform used by one of the airline's contact centres. Cybersecurity experts said the breach is part of a much broader problem - and corporate Australia is falling short. Dr Hammond Pearce, a lecturer in computer science and engineering at UNSW, told NewsWire the embarrassing incident at Qantas highlights a dangerous complacency among major companies. 'It's disappointing and frustrating that a company of this size and means, one which has tremendous importance to everyday Australians, is unable to safeguard our data,' Dr Hammond said. Although contained, the latest attack may have compromised names, phone numbers, email addresses, dates of birth, and frequent flyer numbers. Credit card details, passports, and login credentials were not affected. The suspected culprits are the cybercrime group Scattered Spider, known for targeting large organisations through helpdesk systems operated by third-party platforms, often using sophisticated social engineering techniques. The breach comes amid a significant surge in cyberattacks across Australian sectors. In April this year, thousands of AustralianSuper and Rest members were affected by 'credential stuffing' attacks, where hackers used stolen login details from past breaches to access accounts. The attackers siphoned off $500,000 from just four accounts. The Australian Signals Directorate, a Federal Government intelligence agency, responded to over 1100 cyber security incidents and 36,700 hotline calls in 2023–24, a 12 per cent jump on the previous year. Data breach notifications spiked 15 per cent in the second half of 2024. Healthcare remains the most targeted industry, with 102 reported breaches in the latter half of last year. Financial institutions and manufacturers are also under siege, with attackers exploiting stolen credentials, ransomware, and legacy technologies to halt operations or access sensitive information. Dr Hammond said it's becoming clear that large datasets of personal information, like names, birth dates, and phone numbers, should be 'treated as liabilities, not assets.' 'In Australia, as in many countries, the mass collection and retention of data is usually encouraged from a business point of view. 'Only the government has the abilities to bring in privacy-first rules which can motivate changes to this practice,' he said, urging regulatory reform to force companies to treat personal data with the seriousness it deserves. He warned that the accumulation of personal data is not only a risk in itself but a direct path to further harm. 'There is the very real potential for down-stream attacks whereby the stolen data is used for scams and other schemes; they might reach out to you pretending to be someone they are not,' he said. Dr Hammond said that while Qantas acted appropriately after discovering the breach, its overall cybersecurity posture was 'insufficient' — a pattern seen repeatedly across Australian organisations. 'Qantas is not alone in this regard, it is just the latest in a long string of companies which have had data breaches, and it is fast becoming time for a proper regulatory overhaul to require that these companies treat our data with the concern that it deserves,' he said. The Qantas breach follows a rising number of incidents linked to third-party vendors. Experts say supply chain vulnerabilities now account for the majority of data breaches in Australia, and organisations must hold external providers to the same high cybersecurity standards as internal systems. Stephen Kho, cybersecurity expert at Avast, told Newswire that businesses must go beyond simply defending against threats and start preparing. 'Businesses, no matter their size, need to accept that cyberattacks are no longer a matter of 'if', but 'when'. That means shifting from a purely defensive mindset to one of preparation and resilience,' Mr Kho said. While AI was not involved in the Qantas incident, cybersecurity professionals are increasingly warning that artificial intelligence will supercharge future threats. Scammers are now using AI to craft phishing messages, mimic voices, and even create deepfakes to deceive victims. As the technology advances, impersonation attacks and targeted scams are becoming harder to detect and more damaging. Mr Kho said prevention is still the best defence against increasingly sophisticated attacks, and he has advice for both the public and businesses. He recommends using a password manager to generate strong, unique logins for every account, keeping devices and apps updated to patch known vulnerabilities, and staying alert to anything that seems suspicious. 'A healthy dose of scepticism online is one of the best defences you have,' he said. Mr Kho also urges people to act quickly if something seems off, such as receiving unexpected verification codes, password reset emails, or strange messages from friends, as these may be signs an account has been compromised. If caught up in a breach, he advises updating sensitive passwords, monitoring bank statements, and watching out for phishing scams impersonating trusted brands like Qantas. 'The goal is to contain the damage before it escalates,' he said. For businesses, he urges companies to invest in secure infrastructure, regularly patch software, educate staff, and prepare a clear incident response plan if a breach occurs. 'How quickly and transparently a business responds can have a huge impact on how customers perceive and trust the brand afterwards.' The federal government has pledged up to $20 billion by 2033 to strengthen Australia's cyber defences and has launched awareness campaigns like 'Stop. Check. Protect.' to help Australians recognise and avoid online scams. But Dr Hammond argues that meaningful progress requires more than public awareness — it demands a systemic overhaul. 'It is fast becoming time for a proper regulatory overhaul to require that these companies treat our data with the concern that it deserves,' he said. Until then, Australians are being urged to take their own precautions, because as the Qantas breach makes clear, even the biggest and most trusted companies are far from immune.
Sky News AU
2 hours ago
- Sky News AU
Regional growth fueling retail and dining sectors
Uber Eats ANZ Managing Director Ed Kitchen discusses the trend of people moving to regional areas and how Uber Eats aims to increase 'convenience' for restaurants, retailers and consumers within these areas. Prime Minister Anthony Albanese and top business leaders have discussed the major economic and political issues facing the nation at Australia's Economic Outlook 2025. 'The move of population into the regions has been really big and one in three Australians now live in regional Australia,' Mr Kitchen said at Australia's Economic Outlook. 'They have the same expectations of convenience that we do here. 'That's been a trend that we have been phenomenally surprised at the amount of adoption and demand from restaurants, retailers and consumers in the regions as well.'
AU Financial Review
2 hours ago
- AU Financial Review
Tech workers, scientists take $600k pay cuts to flee Trump's America
It might be the Peter Allen effect, or it could be Donald Trump, but Australians working in the US are calling Australia home again as they leave lucrative jobs in tech and science for opportunities Down Under. But those returning find they are competing for jobs with Americans fleeing the US.
