What the $3 Million Super Tax Means for High-Net-Worth Investors and Why It’s Not All Bad News
At Renown Lending, we’re no strangers to change—and neither are our clients. With Labor’s proposed tax on superannuation balances over $3 million gaining momentum, many high-net-worth Australians are rightly reviewing their financial strategies. While the media may spotlight concern, we see this moment as one of clarity and opportunity.
The new measure—an additional 15% tax on earnings above the $3 million threshold—might initially seem confronting. But in practice, it’s a move toward a fairer and more balanced superannuation system. Only 0.5% of Australians will be affected. For those in this category, it’s less about panic and more about proactive planning.
The Australian Taxation Office (ATO) has added this to its watchlist for the upcoming financial year, particularly focusing on wealthy private groups. But this doesn't mean all restructuring is under threat—it means transparency and proper advice are more important than ever.
At Renown Lending, we work closely with accountants, financial planners, and estate lawyers to help clients navigate complex changes like this. Now is an ideal time to reassess your superannuation strategy and consider transitioning certain assets into alternative structures such as family trusts, companies, or private investment vehicles. These structures—while still subject to appropriate tax regulation—offer flexibility in managing wealth and succession in a post-reform landscape.
We also believe this reform could be a catalyst for a deeper shift: from passive accumulation to strategic deployment of capital. For example, rather than holding large property assets inside a self-managed super fund, consider investing through a lending structure that offers returns outside the superannuation environment. Our suite of private lending opportunities can provide alternatives that align with your goals—while still ensuring responsible tax compliance.
We understand the nuances of wealth management. This isn’t about avoiding tax; it’s about managing it wisely. With proper planning, the new rules can be worked into your long-term strategy without sacrificing returns—or legacy.
If you’re one of the many Australians reconsidering your financial future in light of this proposed legislation, we encourage you to speak with us. At Renown Lending, we believe that every regulatory shift is also a chance to strengthen your financial foundation.
