Cited sources:
https://www.afr.com/politics/federal/new-blow-to-labor-s-tax-hit-on-super-20240624-p5jo55
https://taxsummaries.pwc.com/australia/individual/other-taxes#:~:text=The%20tax%20will%20apply%20from,AUD%203%20million)%20from%20funds.
“Government plans to raise the tax rate on superannuation accounts valued at more than $3 million have suffered a blow, with key Senate crossbenchers opposed to the taxation of unrealised gains.
The government will use its numbers to push the legislation through the House of Representatives this sitting fortnight, and then wants it through the Senate after parliament resumes in August.”
“The legislation would establish a new tax known as a division 296 tax liability. It would double from 15 per cent to 30 per cent the tax rate on the earnings of the portion of super accumulation accounts over $3 million.
Earnings relating to assets below the $3 million threshold will continue to be taxed at 15 per cent, or zero if held in a retirement pension account.
Due to come into force on July 1, 2025, the change is budgeted to raise $2.3 billion in 2027-28, its first full year of receipts collection. Because the $3 million is not indexed, receipts will rise steadily beyond that as the number of affected people increases.”
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