Better Targeted Super 30% Tax 2027 Calculator
From 1 July 2026, super balances above $3 million face an extra 15% tax on earnings — bringing total to 30%. Calculate your additional tax liability on excess.
| Total super balance | — |
| Threshold | — |
| Excess above threshold | — |
| % of balance taxed at 30% | — |
| Annual earnings (at growth rate) | — |
| Year 1 extra tax (15% × earnings × pct) | — |
| Projection horizon | — |
| Year N balance | — |
| Year N extra tax | — |
From 1 July 2026, Australian super balances above $3 million face an additional 15% tax on earnings, bringing the headline rate to 30% on the excess portion. The tax applies on unrealised gains (mark-to-market), making it controversial. Calculate the year-1 and multi-year impact on your balance.
How the New Tax Works
If your total super balance > $3M on 30 June, the ATO calculates earnings for the year (closing - opening balance + withdrawals - contributions). The portion attributable to the excess (excess/total balance) is taxed at an additional 15%. Total tax = 15% (existing) + 15% (new) = 30%.
Unrealised Gains Issue
The new tax applies to unrealised gains — paper increases in property, shares, and SMSF assets. SMSF members with property holdings may face tax bills without liquidity. Liquidity planning is critical: ensure 5-10% cash for tax liabilities.
Strategies to Reduce Impact
1) Drawdown to below $3M pre-1 Jul 2026 (pension phase mandatory drawdown). 2) Restructure SMSF to limit unrealised exposure. 3) Move higher-growth assets outside super (held in family trust or own name). 4) Accept the new tax — 30% effective still beats top marginal 47% on out-of-super investments.
Grandfathering Provisions
No grandfathering — applies to balances above $3M from 1 July 2026 regardless of contribution history. The threshold is NOT indexed to inflation — bracket creep will push more people into the tax over time.
Last updated May 2026. Sources: ATO Better Targeted Super, Treasury Better Targeted Super.