Has it been noticed that the proposed changes to tax on Superannuation fund " earnings" on balances over $3 million is to tax these " earnings" at 30% , an increase from the present 15%.
What is most alarming is that the "earnings" is an annual calculation of the net growth of an individual's total superannuation balance.
This includes UNREALISED GAINS!
The tax bill can be paid by the individual or by the Super Fund.
If you have some real estate in your Super fund, you will need to pay tax on the unrealised increase in the value of this property. The increase in value might be higher than the rent received!
What if your Super fund holds shares in " Poseidon 2" which goes up in price one year only to crash the next year. What is the tax bill for your Super Fund?
It seems people should be protesting about taxing unrealised gains as being contrary to established practice .
How are we to get publicity for this unfair proposed tax on unrealised gains, when so much attention is being given to other matters.
Please can we have a few voices for not changing the goals posts of Superannuation.
To tax GAINS is fair.
To tax UNREALISED GAINS is not fair and possibly not legal.
The fact that this rule applies to funds with balances over $3 million, and that $3 million is not to be indexed, means that sooner or later, this may apply to many more people than it does at present.
Most people to whom this applies will happily pay more tax on real earnings but not on "yet to arrive and may never arrive" earnings.