Treasurer Jim Chalmers has backed down on plans to tax unrealised gains on superannuation and has introduced indexing for balances above $3 million – changes business and economists have been pushing for since before the May election.

The government will establish a 40 per cent tax rate for earnings on balances above $10 million, while earnings on balances above $3 million will still be taxed at 30 per cent.

Treasurer Jim Chalmers announces the changes to Labor’s plans on Monday afternoon. Credit: Alex Ellinghausen

The low-income super tax offset (LISTO) payment will also be raised from $500 to $810. Currently, those earning under $37,000 a year receive $500 from the government, directly deposited into their super account. From 2027, the threshold will be raised to an income of $45,

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