Super tax on paper gains axed
A change of mind due to “genuine” feedback and 6 calls with former PM Paul Keating were given as reasons for the back-flip on Superannuation announced by Treasurer Jim Chalmers.
The plan to tax unrealised gains in super meant that people may have had to stump up cash for tax according to fluctuating paper valuations rather than actual money received– which could cause issues for those with assets that could not easily be converted to cash to pay the tax. Like land for example.
The problem is the Government needs to either reduce expenditure or raise more tax money to get the budget under control. The additional measure added was for a new super tax on $10 million or more of 40%. But as the estimates on the revenue is now less, it must be that there aren’t that many people who have over $10m in their super.