Article written by Sarah Davie
Associate Director & Licensed SMSF Accountant
$3 million super tax introduces a new tax on earnings associated with super balances above $3 million.
The following case studies illustrate how the $3 million super tax may apply in practice.
Case Study 1 – SMSF Holding Commercial Property
David operates a business and holds $4.5 million in super through an SMSF that owns the commercial property used by his company.
- Annual earnings: $180,000
- Amount above threshold: $1.5 million
- Proportion above threshold: 33%
- Taxable earnings: $59,400
- Additional $3 million super tax (15%): $8,910
Case Study 2 – Couple with Unequal Super Balances
- Michael has $4.2M in super while Sarah has $800k.
- Because $3 million super tax applies per individual, Michael may face the additional tax while Sarah does not.
Case Study 3 – Long‑Term SMSF Property Investment
Jenny’s SMSF purchased a property in 2008 for $900,000. It is now worth $3.5 million.
$3 million super tax legislation allows a cost‑base reset for assets held prior to 30 June 2026, potentially
reducing future taxable gains associated with the new tax rules.
Case Study 4 – Investor Approaching the Threshold
Andrew currently has $2.8M in super. Continued investment growth may push his balance above the
$3 million super tax threshold in future years.
Understanding these scenarios helps trustees assess whether the $3 million super tax may affect them.
Still got questions?
Our highly experienced and local SMSF team can walk you through the process and help you understand
whether a SMSF loan for property is a viable option for you.
Book a Free SMSF Strategy Session with Rogerson Kenny’s SMSF specialists today.
Or call us on (03) 9802 2533 to talk through your options.
*Disclaimer: This article is general information only and does not take into account your personal circumstances. Always seek professional advice before making financial decisions.*
Sarah Davie is an Associate Director and Licensed SMSF Accountant at Rogerson Kenny Business Accountants. She specialises in Self-Managed Super Funds and advises trustees on compliance, strategy and superannuation legislation.
