The new $3M super cap: what it means for SMSF members in South Australia

From July 2025, individuals with superannuation balances above $3M will face an additional 15% tax on earnings attributable to the portion above the threshold. For SMSF members — who make up a large share of those affected — the measure changes the calculus on contributions, pension strategy, and where assets are held.

The mechanics matter. As proposed, the tax applies to unrealised gains as well as realised earnings, which has significant implications for funds holding lumpy assets such as direct property or private company shares. Trustees with balances approaching the threshold need to model the impact before it applies, not after.

Strategies worth considering now include reviewing contribution timing, evaluating when to commence pension phase, and assessing whether the fund's asset mix remains appropriate. None of these decisions should be rushed — but all of them take time to execute correctly within your fund's deed and investment strategy.