Squiz Today Your Shortcut to... the super tax debate
Jun 3, 2025
The podcast dives into the recent changes to superannuation tax in Australia, focusing on how high-income earners will be affected. It discusses the political landscape, highlighting support from the Greens and potential long-term implications for everyone. The debate around unrealised gains raises concerns about tax burdens and impacts on younger Australians. Listeners are encouraged to rethink their financial strategies regarding retirement savings and family trusts as these new tax policies unfold.
AI Snips
Chapters
Transcript
Episode notes
Super Tax Targets Large Balances
- The main change is a new 15% tax on earnings of super accounts exceeding $3 million, effectively 30% on amounts over that.
- This targets the wealthiest 0.5% but may affect many more over time due to inflation and asset growth.
Basics of Superannuation
- Superannuation is a mandatory savings scheme where employers contribute a percentage of wages to a fund invested for retirement.
- Earnings on contributions are taxed at 15%, withdrawals after 60 are tax-free to encourage savings.
Tax Includes Unrealised Asset Gains
- The tax includes unrealised gains valuing assets on paper before sale, unlike traditional tax principles.
- This may force asset holders to sell or withdraw to pay tax, reducing their retirement savings.