Eight Changes to the Super Tax: How it Affects You Now
The Albanese Government has made significant changes to the super tax, with Treasurer Jim Chalmers reversing his initial stance on the issue.
The new changes will primarily affect the very rich, but the reforms are considered more tolerable. Key changes include:
- The tax on unrealised gains has been cancelled.
- The $3 million starting point for a 30% tax on super earnings will now 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% to 30% tax on super.
The new super tax changes will hit the very rich, but the reforms are more tolerable.
Author's summary: Albanese Government reverses super tax changes.