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Insufficient Impact Analysis – Reducing tax concessions on superannuation balances exceeding $3 million

On 28 February 2023, the Treasurer, The Hon Dr Jim Chalmers MP, and the Assistant Treasurer, The Hon Stephen Jones MP, announced that the Australian Government will reduce the tax concessions available to individuals whose total superannuation balances exceed $3 million at the end of the financial year, commencing on 1 July 2025. 

The policy intends to ensure superannuation tax breaks are better targeted and sustainable.

As this policy will likely have major impacts on affected individuals and superannuation funds, an Impact Analysis (IA) was required to be prepared but was not completed. Therefore, as per the Australian Government Guide to Policy Impact Analysis, the Office of Impact Analysis considers the measure is insufficient to meet the Government’s Impact Analysis requirements. 

Accordingly, a post-implementation review is required to be completed within two years of its implementation. 

Link to official media release below: 

Superannuation tax breaks | Treasury Ministers 

The Treasury has subsequently prepared an IA which is published here for transparency purposes only. The OIA has not assessed this IA.

OIA assessment of the Impact Analysis
Insufficient
Adequate
Good practice
Exemplary
Attachment File type Size
Impact Analysis pdf 1.3 MB
Impact Analysis docx 1.28 MB