Labor’s Super Tax to Hit 500,000 Australians Due to Lack of Indexation: Report

The FSC found that if the threshold were indexed annually at 2.5 percent, the number of people hit by the tax at retirement would plummet to just over 64,000.

Commuters move through Central railway station in Sydney, Australia on Jan. 15, 2025. Lisa Maree Williams/Getty Images

More than 500,000 Australians currently in the workforce—nearly half of whom are under 30—will be affected by Labor’s proposed superannuation tax hike if it’s not indexed properly, new analysis shows.

The projection, six times higher than the government’s estimate of 80,000, comes from the Financial Services Council (FSC), which has warned the long-term impact will fall disproportionately on younger workers.