Super fund members with balances over $3 million are set to miss out on a tax break for capital gains under the government’s proposal.
Superannuation fund members with balances over $3 million are set to miss out on a tax break for capital gains accrued from 2025 onwards, under the Albanese government’s proposal to tax paper profits.Deborah Ralston, said separately
Financial Services Council chief executive Blake Briggs said it was consulting industry on how the unusual formula chosen by the government for calculating the tax affected super funds.“The current CGT tax rate for assets held for longer than a year in a super fund is 10 per cent, meaning there is a 33.33 per cent CGT discount,” he said.
Dr Chalmers said it was a “modest” change that affected only 0.5 per cent of people with super accounts, and would help to make super tax concessions and the budget sustainable in the future. Generally, super fund members do not pay tax on unrealised gains, and assets are often held for decades. Professor Deborah Ralston says it’s right to reduce tax concessions for people with more than $3 million in super.“The proposal to raise earnings tax on balances over $3 million directly addresses this issue,” she said in“While these balances constitute less than 1 per cent of all super accounts, it can be argued that such amounts well exceed what is needed for retirement income.
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