money money money 822 taxing unrealised gains? understanding the Division 296 superannuation tax
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Jun 2, 2025 The discussion revolves around the proposed 15% tax on superannuation balances exceeding $3 million, set to start in July 2025. The complexities of taxing unrealized gains are dissected, showcasing historical attempts and the challenges involved. The impact on farmers and future generations in relation to wealth distribution is also explored. Public reactions highlight fairness concerns, particularly regarding taxing paper gains, and the need for a more equitable taxation policy is emphasized amid evolving financial landscapes.
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Farmers and Superannuation Wealth
- Farmers typically accumulate wealth in super funds as security against volatility but often don't own farms directly within SMSFs.
- Farms in certain areas can be worth tens of millions, making liquidity for tax payments a concern.
How to Calculate Division 296 Tax
- Know how Division 296 tax is calculated to estimate your liability.
- Use adjusted total super balance minus contributions to find taxable earnings over $3m and apply 15% rate.
Tax Impact Is Small Per Person
- A super balance slightly above $3 million incurs a relatively small extra tax in absolute terms.
- The tax revenue accumulates from relatively few individuals with very large super balances.
