'Slightly less generous': government set to unveil super tax legislation

It comes as the federal government prepares to unveil draft legislation that, if passed, will double the concessional tax rate paid by Australians with superannuation account balances worth more than $3 million, from 15 to 30 per cent.

The change is expected to affect around 0.5 per cent of Australians with super accounts.

Treasurer Jim Chalmers said people with super balances of more than $3 million will still receive super tax breaks but they will be "slightly less generous".

Another 29 people have increased their balances to above $50 million over the course of the 2020-21 financial year, growing to 107 people.

But most Australians have less than $200,000 in super.

The average Australian super account has grown by $20,000, from $150,000 in 2019-20 to $170,000 in 2020-21, according to the Australian Taxation Office.

The changes to super tax concessions will need to be legislated and would apply from 2025-26, after the next election.

"The Coalition should either support this modest and sensible change or nominate where else they will find billions of dollars in budget improvements," Dr Chalmers said.

The changes are not retrospective and will not affect the amount Australians can put into their super.