In Short:
– Treasurer Jim Chalmers announced a 40% tax on retirement balances over $10 million, aiding low-income earners.
– The reform improves the Low Income Superannuation Tax Offset, helping 1.3 million Australians with higher annual payments.

Australian Treasurer Jim Chalmers announced a significant overhaul of the government’s superannuation tax proposal.The new plan introduces a 40 percent tax rate on retirement balances exceeding $10 million while increasing support for low-income earners.

The announcement comes after months of political and industry pressure and represents a major shift from the original policy.

It addresses prior criticisms related to indexation and taxation of unrealised capital gains.

Under the revised policy, balances between $3 million and $10 million will face a 30 percent concessional tax rate.

Both thresholds will now be indexed to inflation to prevent bracket creep affecting middle-income Australians.

The government has also removed taxes on unrealised capital gains, with changes applying solely to realised earnings from 2026.

“This has been a contentious policy,” Chalmers stated, indicating that it affects less than 0.5 percent of Australians, with about 80,000 anticipated to have over $3 million in superannuation next year.

Key Benefits

The reform package significantly improves the Low Income Superannuation Tax Offset (LISTO).

Annual payments will rise from $500 to $810, with an increased eligibility threshold from $37,000 to $45,000 by 2027.

This adjustment will assist approximately 1.3 million Australians, mainly benefiting women.

Eligible workers could gain around $15,000 in retirement, increasing LISTO eligibility to 3.1 million Australians.

The changes could generate about $1.6 billion in net revenue by 2028-29, a decrease from the original $2.5 billion projection due to enhanced LISTO benefits and extended implementation.

In Short:
– Bitcoin dropped to $104,782 due to heightened US-China trade tensions.
– The S&P 500 Index fell over 2% amid escalating market uncertainty.

Bitcoin fell to $104,782 amid escalating US-China trade tensions.On October 10, U.S. President Donald Trump announced a significant increase in tariffs on Chinese goods, raising them to 100%.

The decision follows China’s recent restrictions on rare earth mineral exports, which are crucial for various technologies and manufacturing sectors.

The trade dispute affected global markets, resulting in a more than 2% decline in the benchmark S&P 500 Index.

Bitcoin experienced an 8.4% drop at $104,782 by 17:20 ET, while Ethereum, the second-largest cryptocurrency, fell by 5.8% to $3,637 at 17:21 ET.