The Federal Government’s “Stronger and Fairer Super System” package has now passed both Houses of Parliament (10 March 2026), following confirmation of Greens support. While the changes were widely expected, and we’ve covered the lead-up extensively (including division 296 and super reform), this marks the moment the policy moves from “proposed” to locked in. In other words, the final shoe has dropped.
For everyday Australians, the practical impact splits into two clear stories: a bigger boost for low-income workers (from 1 July 2027) and a higher tax setting for very large super balances (from 1 July 2026).
For many households, this matters because super is one of the few long-term savings tools where small changes compound over time. If you’re checking how these reforms might affect your take-home position or retirement strategy, a local accountant Box Hill can help translate “policy headlines” into decisions you can actually act on.
The reforms sit inside the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 and are accompanied by the Superannuation (Building a Stronger and Fairer Super System) Imposition Bill 2026 (introduced separately for constitutional reasons when imposing certain taxes).
What’s in the Bill
- Big-balance tax changes: the $3m+ measures (from 1 July 2026)
From income years starting 1 July 2026, the legislation reduces tax concessions on certain earnings where a person’s total superannuation balance exceeds $3 million.
Under the enacted framework:
- The portion of a person’s balance above $3 million up to $10 million is subject to an additional 15% tax (bringing the nominal total tax rate on those earnings to 30%).
- The portion above $10 million is subject to a higher additional rate (bringing the nominal total to 40%).
- The thresholds are designed to be indexed to CPI in line with the Bill provisions.
Importantly, the $3 million test is not simply measured at year-end in all cases. In most years, liability can depend on the higher of:
- Your total superannuation balance at the end of the income year, or
- Your total superannuation balance just before the start of the income year
This integrity rule is designed to limit balance manipulation. There is also a transitional rule for 2026–27, where liability is determined solely by reference to the balance at 30 June 2027. These mechanics are outlined in the Parliamentary Library Digest linked above.
Why this is material: anyone near (or above) the threshold may need to revisit contribution plans, pension/accumulation mix, and how liquidity is managed to meet any additional tax assessments.
- LISTO boost: more super back for low-income earners (from 1 July 2027)
The second major component is an upgrade to the Low Income Superannuation Tax Offset (LISTO). From 1 July 2027:
- The LISTO income threshold increases from $37,000 to $45,000.
- The maximum payment increases from $500 to $810.
LISTO is designed to effectively refund the 15% contributions tax paid on concessional (employer) contributions for eligible low-income earners, so super remains worthwhile even when your marginal income tax rate is low.
Implications and who benefits
If you’re a low-to-middle-income worker
If your adjusted taxable income sits around the current threshold, the proposed change may expand eligibility and lift the maximum offset. The practical benefit is stronger retirement outcomes for people who often have interrupted work patterns or lower contribution amounts.
If you have (or are approaching) $3m+ in total super
The key planning issue is timing and measurement. Because the rules use specific balance testing mechanics (including the higher-of opening/closing balance rule after the transitional year), strategies that materially shift balances or earnings outcomes may need to be considered well before 30 June each year. A Box Hill accountant can also help coordinate super strategy with broader tax outcomes (structures, capital gains timing, and cash-flow planning).
Infinity Solution Tax Plus can help you map these legislated rules to your own numbers—whether that’s checking LISTO eligibility pathways, or modelling the impact of large-balance changes from 1 July 2026 and beyond.
Final thoughts
The legislation has now passed both Houses of Parliament (10 March 2026), with commencement dates applying from 1 July 2026 (large balances) and 1 July 2027 (LISTO changes).
The safest approach is early planning: understand which start date applies to you and adjust proactively with a trusted accountant in Box Hill.
Disclaimer: This article contains general information only and does not constitute financial or taxation advice. You should seek personalised advice from a registered tax or financial professional.
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