Chalmers lays down the law on super tax

Treasurer Jim Chalmers is remaining steadfast that the Labor government will legislate the 30% tax rate on superannuation balances over $3 million.

"We've made that clear that we haven't changed our policy. We announced that policy more than two years ago now. We consulted on it. It is a policy that affects half a percent of people with balances above $3 million," Chalmers said.

"It is still a concessional tax treatment for people. It's slightly less concessional. And it helps us fund things like stronger Medicare or tax cuts or cost-of-living help or building more homes. And so, it's an important part of our budget."

As part of the changes, the increased tax rate will also include taxing unrealised gains including assets and shares held in self-managed super funds.

Chalmers added that the calculation of unrealised gains exists in other parts of the super system.

"It's not unique to what we are proposing. It affects very few people. It's still concessional treatment. It's been part of our budget for a little while now. It's been before the Parliament for a little while now and we haven't changed our approach to it," he said.

The super industry has been pushing against the policy with the SMSF Association (SMSFA) saying the tax on unrealised gains "punished aspiration".

"Let's be clear: taxing someone on paper gains they haven't received a cent from is not reform - it's confiscation," the SMSFA said in a joint statement with other industry groups.

"Australia has a proud history of rewarding effort, enterprise, and prudent investment. A tax on unrealised gains turns that on its head. It punishes people not for what they've earned, but for what they might earn - and that's a road no country should go down."