JUST IN: AUSSIE UNREALIZED GAINS TAX
🇦🇺 The Australian Labor Government proposes a new tax on unrealized capital gains.
The tax will apply to everything, including your family home, potentially forcing you to sell!
I've been warning you: modern feudalism is coming to the West. pic.twitter.com/DKJCiqk87C
— Alex Recouso (@alexrecouso) May 19, 2025
The Australian Labor Government’s proposed unrealized capital gains tax is sparking intense debate, with critics warning that it could have severe financial consequences for homeowners, investors, and retirees. The policy, set to take effect in July 2025, introduces a 30 percent tax on unrealized gains for superannuation balances exceeding $3 million. While the government frames it as a measure targeting the wealthy, opponents argue that it sets a dangerous precedent that could extend beyond retirement accounts and into personal assets, including family homes.
The concept of taxing unrealized gains—profits that exist only on paper and have not been cashed out—is highly controversial. Traditionally, capital gains taxes are levied when an asset is sold, ensuring that taxpayers pay from actual income rather than theoretical wealth. This new approach forces individuals to pay taxes on assets they haven’t sold, potentially leading to forced liquidations just to cover tax bills.
The financial burden could be immense. Farmers, small business owners, and retirees with self-managed super funds are particularly vulnerable. Many of these individuals are asset-rich but cash-poor, meaning they hold valuable properties or investments but lack the liquidity to pay sudden tax obligations. Industry experts warn that this policy could force Australians to sell homes, businesses, or retirement assets simply to meet tax demands.
The policy has already passed the House of Representatives and is expected to be reintroduced in the Senate if Labor wins the upcoming federal election. Opposition parties and independent MPs are pushing back, arguing that the tax will disincentivize investment, shrink the tax base, and destabilize the economy. Some analysts predict that the policy could reduce overall societal wealth by $94.5 billion per year, a staggering figure that highlights the potential economic damage.
Sources:
https://wilsonassetmanagement.com.au/labors-tax-on-unrealised-gains-could-wreck-your-retirement/