Chris had the pleasure of joining Jo Trilling on ABC Radio's Perth Drive Show to discuss the proposed changes to taxation of super.
In a recent move by the Australian government, Treasurer Jim Chalmers has introduced a new superannuation taxation proposal. The key feature of this proposal is an additional 15% tax on superannuation balances exceeding $3 million. This change has garnered considerable attention and varying opinions, with the government projecting a revenue increase of $2.3 billion.
This proposal has largely been well received by the public. Many voters view it as a progressive step towards a fairer tax system. They believe that those with higher superannuation balances should bear a larger share of the tax burden.
Amid the proposed superannuation taxation changes, a significant departure from the norm arises as notional gains and losses within superannuation funds come into focus. Under this proposal, even unrealized gains will be subject to taxation, marking a substantial shift from the traditional practice of taxing capital gains upon asset sale. While supporters argue that this offers a fair approach to boost government revenue, it has drawn criticism from financial advisers who fear it may necessitate premature asset sales to meet tax obligations, potentially disrupting long-term investment strategies and market stability.
As this proposal moves through the legislative process, it will be important to consider both its potential benefits and drawbacks in shaping the future of superannuation in Australia.
What do you think? Is the proposed tax fair? Leave your comments below.
