Treasurer Jim Chalmers has confirmed sweeping reforms to Australia’s superannuation system, announcing that unrealised capital gains will no longer be taxed under the government’s revised plan. Speaking on Sky News with Kieran Gilbert on Monday, Dr Chalmers said the new measures aim to make super fairer and deliver stronger retirement outcomes for low-income workers.
“We’ve made about half a dozen changes today,” the Treasurer said. “These are practical, pragmatic changes which deliver on the same objectives, which is to make superannuation tax concessions fairer and to deliver more super for low-income earners.”
The most contentious element—the plan to tax unrealised gains in large super accounts—has been dropped. “The change in the calculation from unrealised to realised gains is just one of half a dozen changes that we are announcing today,” Dr Chalmers said, adding that the decision reflected two years of consultation. “It’s not about me or the Prime Minister. It’s about finding the best way we can to deliver on our objectives.”
The government’s updated plan will now target earnings on balances above $10 million, affecting around 8,000 people. “They’ll still get concessional tax treatment in their large superannuation accounts, but it will be more sustainable, more targeted,” he said. The new threshold, he added, “helps to restore super to its original purpose, which is to provide for a decent retirement income.”
Dr Chalmers also confirmed an expansion of the Low Income Superannuation Tax Offset (LISTO), a measure he described as “the biggest change announced today.” The reforms will see 14 times more Australians benefit from the LISTO than those affected by the reduced concessions for large balances.
“By one realistic assessment, the changes we’re making to the LISTO will mean $15,000 more in a superannuation account at retirement,” he said. “It also means more people will retire with more as well. And that’s a really important objective.”
Asked whether he had been overruled by the Prime Minister on aspects of the plan, Dr Chalmers rejected the suggestion. “No, of course not,” he said. “The Prime Minister and I agreed these changes. I recommended them to the colleagues, the colleagues agreed. And having agreed them earlier this morning, I went out and announced them as soon as I can after that.”
The Treasurer confirmed he had spoken with the Greens, who will need to back the package in the Senate. “They’ve been constructive in the way that they’ve engaged with us,” he said. “We would like to see this package passed as soon as we can pass it in 2026, once that additional work has been done.”
Dr Chalmers dismissed suggestions that the adjustments were politically driven, or that Labor had been spooked by the backlash to earlier super tax debates. “This is a government that works through issues in a considered and methodical way,” he said. “When feedback is given to us in good faith, we take it seriously.”
On the treatment of judges’ pensions, Dr Chalmers explained that federal and state arrangements had to be aligned due to constitutional differences. “There was some complexity there and the simplest way to address that was to align the defined benefit part of judges’ super, state and federal, together and that’s what we’re proposing to do.”
The Treasurer insisted the changes are about fairness and sustainability, saying they reflect Labor’s long-standing commitment to strengthening superannuation rather than politicising it. “Our superannuation system is the envy of the world,” he said. “As a Labor Treasurer, I take my responsibilities to super very seriously. That means dealing with some of the imperfections… so that we can make superannuation stronger and fairer, and more sustainable at the same time.”
Source: Sky News interview with Treasurer Jim Chalmers, 13 October 2025.
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