https://wentworthreport.com/2025/04/25/labors-tax-on-unrealized-capital-gains-wi...





By Matthew Cranston in The Australian.

Labor wants to slap a 30 per cent tax on unrealised capital gains made in superannuation ­accounts worth $3m or more without any indexation. The Greens are willing to back Labor but want the threshold to be lowered to $2m …

“The problem with UCGT is that every time you raise capital for a company, it can take place at a higher valuation and every time that happens you would get taxed, but the trouble is the company could still fail, it could go to zero and yet you have paid all this tax on what wasn’t even there and there is no refund,” [CSL chairman Brian McNamee] said. …

Dr McNamee was made chairman of Australia’s third largest company, having been chief executive for 23 years, and is ­regarded as a leader in raising up small technology and drug ­companies. ..

In the most stunning intervention by a business leader in the election campaign so far, Dr McNamee said the Albanese government did “not understand the consequences” of the “frightening, shocking” unrealised capital gains tax policy that Jim Chalmers was championing.

“I am deeply troubled about what it will do and how it could make Australia a less attractive place to invest,” Dr McNamee told The Australian. …

Experts in raising money for companies say an unrealised capital gains tax would be a disaster. …

Mr Paton, the former UBS and Citi dealmaker who with his team assisted in raising more than $200bn in capital for companies, said Labor’s new tax was a “wrecking ball” for small and ­medium-sized business capital.

“My prediction, after 25 years in raising capital, is that this is a game stopper for entrepreneurial spirit in Australia unless Treasury finds a way for big industry funds to fill the space of providing long term risk capital for small early-stage companies.” …

Investment managers across Australia — including regional areas where people with illiquid assets such as farms and warehouses would also have to pay unrealised gains — are raising the idea that Labor’s new tax would eventually be used on the family home.

Note also that Labor’s tax trheshold is not indexed. Due to the western world’s need to print its way out of huge debts — which is now widely recognizable, and the root cause of the rising gold price — there is a lot of inflation headed our way. $3m will seem small in a decade. Your home is only worth $3m — you poor things.

Hi Yadda,
that won't stop politicians dreaming up new ways to tax us.

Even CGT on money in the bank is unfair -
they don't allow you to claim for losses due to inflation -
you lose money by having it in the bank.

Maybe everyone could be fitted with an air meter -
so they could tax us on how much air we breathe?

No date on this article?


https://www.primefinancial.com.au/blog/division-296-criticism-smsf-stressors-reg...





With the Bill set to be introduced to the Lower House this week, it looks as though Division 296 legislation is set to been acted by July 1 next year, despite concerns from Industry. The proposed “$3million supertax” will impact less than 1% of Australians with a superannuation account in the 2025/26 financial year, but it remains controversial.

Indeed, since draft Division 295 legislation was introduced in October last year, critics describe it as rushed, flawed, and particularly punitive for SMSF members.


How is Division 296 Calculated?
Once the Division 296 tax is in effect, any earnings on superannuation balances exceeding $ 3 million in a financial year will be subject to an additional 15% tax, making the total tax on this portion of earnings 30%.

Each year, a member’s adjusted total superannuation balance (TSB) will be used to determine how much, if any, Division 296 tax should be applied. This ensures that only the change in value from the start to the end of the financial year is used in the Division 296 tax calculation.

Certain withdrawals are added, and the year's superannuation contributions are subtracted to produce a TSB. Withdrawals are added to prevent taxpayers from taking money from their superannuation account to avoid a Division 296 tax liability. Meanwhile, contributions are considered an injection of capital rather than fund earnings, so they’re excluded from the Division 296 calculation. This area is complex due to the nature and number of withdrawals and contributions that may result in an adjusted TSB. Exclusions to withdraw and contributions are set to apply, so once legislation is enacted, it’s a good idea to become familiar with these conditions.

If the TSB at year-end is less than $3million, the taxpayer will not be subject to Division 296 tax for that income year.

Quote:


This only applies to superannuation over $3 Million.

What is business doing holding money and assets in superannuation besides to avoid their tax bill ?

If it can spread to Home values than why do people have their home held in superannuation ? How does that work or is it just a lie ?

Lols said “. . . undetached existing houses. . ”

I assume you meant unattached houses? Single dwellings?

Bobby. wrote on Apr 25^th, 2025 at 8:24am:



not different to what is done with land tax

John Smith wrote on Jul 21^st, 2025 at 12:24pm:


No it isn't. Land is taxed based on its value, not the increase in it's value. Depending on the circumstances, you could pay a fortune in land tax while making no capital gain, or you could make huge capital gains while paying little land tax.

Dnarever wrote on Jul 21^st, 2025 at 11:43am:


Oh oops.
I was thinking of starting a new heading… but the way most topics veer off course… I’m not too way off maybe 
Yeah unattached … undetached …. My new word for the day…. Good to see I am being paid attention to