Treasurer Jim Chalmers announced on Tuesday he will cap super tax breaks for accounts with more than $3 million. Currently, earnings from super in the accumulation phase is taxed at a rate of up to 15%. Under the proposed changes, balances above $3 million will be taxed at 30%.

This change will affect around 80,000 Australians with balances of more than $3 million.

The changes will take effect after the next election in the 2026 financial year and is expected to boost the budget bottom line by $2 billion a year.