Tax changes to superannuation accounts with over $3m announced by Anthony Albanese, Jim Chalmers

The Prime Minister announced cabinet had approved raising the concessional tax rate, from 2025-26, to future earnings for super balances above $3 million to 30 per cent.

"You will have noticed that's beyond this term. It's after the next election. It's also not retrospective. It applies to future earnings," he told reporters in Canberra.

Prior to the last election, Labor ruled out super changes if it won government, with Treasurer Jim Chalmers telling the ABC in March 2022 that "Australians shouldn't expect major changes to superannuation if the government changes hands."

It comes as the Dr Chalmers released Treasury analysis showing that high-income earners are the biggest beneficiaries of tax breaks worth more than $100 billion a year.

Mr Albanese said the changes would not "change the fundamentals" of Australia's superannuation system.

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"Labor built the superannuation system and we have fought to keep it strong. But Australians who are having to make tough decisions around the kitchen table expect their government to be prepared to make tough decisions around the cabinet table," he said. The change is expected to apply to around 80,000 people, which is 0.5 per cent of the Australian population.

"It will be irresponsible to not take any action whatsoever. That's why we've made this decision today," the Prime Minister said.

"This reform will strengthen the system by making it more sustainable. The savings that are made from the reduction in these tax breaks will contribute $900 million to the bottom line over the forward estimates. And some $2 billion when it is operating on a full-year period. This is an important reform."

The 15 per cent rate continues for balances under $3 million.