Australian Tax Increase on Large Pensions Wins Senate Passage

A bill raising tax rates on large accounts in Australia’s A$4.5 trillion ($3.2 trillion) compulsory pension system cleared its last parliamentary hurdle on Tuesday.

The bill passed the Senate 33-22, adding two new tax rates to the current 15% tax on all realized gains from pension, or superannuation, accounts. It passed the House last week.

Superannuation accounts are mandatory retirement investment vehicles, held mostly in government-accredited corporate or industry-based managed funds. The law addresses the perceived unfairness of wealthy individuals exploiting low tax rates.

“This is good reform that will assist low income earners but also make the superannuation ...