Super taxes to increase from 15% to 30% in 2025. Are you prepared?

The recent release of the 2023-2024 Federal Budget saw the Labor Government increasing tax rates for a range of products, services, and industries, but the most notable increase was to the headline superannuation tax rate. If you’re impacted by this change, it could be time to speak to an investment adviser.

From 1 July 2025, superannuation account holders with balances exceeding $3 million will be taxed at 30%, instead of the 15% tax rate currently in place. Although this is still below the top marginal tax rate of 45%, it will generate $2.3 billion in extra revenue for the government in its first year.

If you have a superannuation account holding less than $3 million, you will not be affected by this change, and will continue to be taxed at the current 15% headline rate.

However, according to the government at the time of the budget’s release, there are 80,000 Australians who will, and that’s not including superannuation accounts holding close to the $3 million figure.

Whether your superannuation balance is above or below $3 million, it may be time to consider investing a portion of your nest egg to provide you with a little more confidence in funding your retirement. 

Fixed income investments, like bonds, can provide you with an opportunity to plan your retirement income. Bonds are “defensive assets” in that they provide lower risk, for lower returns, to generate a predictable flow of income to fund your golden years.

If you secure a fixed rate bond, you'll know what interest you’ll be paid and when, based on the coupon rate and payment terms.

Unlike investing in shares (also called stocks or equities) or property, bond returns are not tied to a company’s share price or a property value, so you don’t have to worry about checking market prices constantly. 

Optimise your portfolio and make smart investment decisions that will deliver regular, predictable income in your golden years.

If you’ve got experience in bond investments or are entirely new to the world of fixed income, this free webinar from the Australian Bond Exchange will explain in simple terms how investing in bonds can help you retire with confidence.