Changes to the Super Tax
The Albanese Government has revised its super tax changes, with Treasurer Jim Chalmers announcing a backflip on previously proposed reforms.
The new changes will primarily affect the very rich, but are considered more tolerable than initially proposed.
Key Changes
- The tax on unrealised gains has been cancelled.
- The $3 million starting point for a 30% tax on super earnings will be indexed to changes in inflation.
This means that future generations of Australian super savers will not be caught by the $3 million threshold, resulting in a more gradual transition from a 15% tax to a 30% tax.
The new reforms are more tolerable, and this change of mind is the one we had to have.
Author's summary: Revised super tax changes affect the rich, with more tolerable reforms.