Unrealised Capital Gains Tax Explained (America NEXT?)

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[atnit]

Tax super earnings at 15% forever.
47% top marginal rate is criminal… and it’s not fair for hard workers earning over $190k to have half of each extra dollar taken and wasted by a labor government.

[slincolne]

Sorry Luke but you are wrong. The reason that Superannuation exists is so that when people reach the point in their life when they cannot work, they have an income stream to support them that does not rely on the Government giving them money collected from taxpayers. The push for superannuation was started by the Government to minimise the burden of supporting ageing population on taxpayers. It is quite likely that many people have done what the Government has asked them to do, and now the Government is changing the deal at a point where many people do not have the option to pivot to a better option.

It's not a particularly good strategy to tax the rich. The ultra rich doctors, lawyers, etc. will simply pivot to a more tax effective option.

The line that the 'superannuation system has been abused' is simply an old piece of recycled rhetoric where people don't like the idea that smart, hard working people have more money. TH fact that there is a 47% personal tax threshold in Australia is simply ridiculous when there are many large businesses that pay little to no tax on the income they gain in Australia, and the worst outcome they face is the potential of negotiating a deal with the ATO for a fractionally better deal that is aimed at getting someone a good headline.

The real crime here is that the ATO will essentially be able to look at a persons assets and make up a fictional transaction value and make the person pay - irrespective of wether the theoretical yield is feasible or not. When you consider this, and outright fictions such as deeming rates already in place this is simply theft by the Government. They will start on the rich, and then once the principle is set they will go after the rest of us.

[camturton]

That's ridiculous, 3ml will be nothing when 30 year Olds such as myself retire

[triplea]

And let's not ignore that this isn't indexed, so for our children, this will be equivalent to a $1M retirement balance today... which isnt much if they reach their life expectancy.

[timothyallen]

3 million is not a lot of money for retirement. Move it to 10 million and have it indexed to CPI each year.

[ryanlasek]

It is so insane to me that you, or anyone else, could consider wanting to save your own money, without being taxed, abusive. The tax is the abuse. I wish that you, and others of the same mind, would just admit that the fundamental principle behind your opinion on taxing unrealised gains is the same as that of communism, "From each according to their ability, to each according to their need". Stealing from people is not ok, even if they're richer than some arbitrary threshold the Government sets.

[andrewmckechnie]

This bill was not passed into legislation. It is not coming into effect 30 June 2025.

[iangray]

This is the thin edge of the wedge. If you think they’ll stop there then you’re dreaming. It’ll move onto Property and then you’ll be screwed

[rightuare]

Unrealised gains is ridiculous. The government just doesn't want money passed on to our Kidd when we die. I don't have 3 mil in my super, but what happens in 20 or so years when assets are a lot more. I guarantee they will keep it at 3 Mil and that is when it will affect a lot more people

[meganfisher]

This is one foot in the door to eventually tax every human asset. Does anyone remember the tax on furniture in Holland many years ago?

[trentmathews]

I think if your super account is worth more than 3 milllion on paper. You should pay tax on the income made that financial year. Taxing unrealised gains... its a bridge too far.

[QBDNASDAQ]

This is a good system, people are allowed to borrow against unrealised gains right. Why cant the gov tax you the same time?

[malcolmlewis]

Super was never designed for rich people to avoid tax. It was designed for retirement. If you have 3 million in super and you get 5% then that’s 150k a year. More than enough.

[eugenetan]

Another great video! Not only property values are growing, so is Luke's hair!

Jokes aside, whether it's Super or not, I think taxing "unrealised gains" generally is pretty absurd. But yes, people should not abuse Super that way. Random idea, but they can simply say "max contribution to Super is 3million" and that's what we think you'll need for the next 30 years.

[rw-xfcb]

How about the individual government members responsible for effectively printing money causing inflation to pay a tax for the amount of money they printed rather than spend what you own/earn. The government needs control and not keep borrowing money infinitum borrowed money for government purposes to say 5 to 10 years.

[OilBaron]

Will that $3M figure be indexed every year with inflation?

Or will half the population get hit with this tax in 20 years time when the average person’s super balance with be millions of dollars?

[KarenNewman-vi]

Please explain how Super is being abused with the contribution limits? High income earners are already paying high tax on their earnings before they can voluntarily put additional funds into Super. Let's just remove all the incentives to take risks to run businesses or farms. The high income earners provide the most jobs and pay the most tax in Australia. THIS TAX IS GOING TO HAVE EXTREMLY BAD UNITENDED CONSEQUENCES for Australia. You really think these people are going to allow themselves to get screwed over again and again, so this inefficient government can waste their money. THERE'S NOT A CHANCE IN HELL! I am going to stop putting money into super and spend everything I have having a good time and then collect the full pension.

[Scritz]

While I understand the reason they are taxing I can definitely see this as being a slippery slope. This year it's those with 3 million in 4 years it's those with 2 and so on. That's why as a sole trader I'll only do the minimum I need to offset my tax. I'm not giving them any more money voluntarily.

[malcolmfletcher]

The important point is the establishment of a principle. Once it is accepted that unrealised gains may be taxed, then the qualifying criteria may be adjusted at the Government's whim. This will ultimately be a burden borne mainly by the middle class -- like income tax.
The rich will find ways to avoid paying and the poor won't have a significant asset base from which to pay.
This idea needs to be scotched before it acquires a patina of legitimacy.

[brettski]

On its face, taxing unrealized gains sounds like a terrible idea. The way you present this new law makes it sound less crazy, but I'm still not convinced it's a good idea. If the government wanted to discourage super balances above some threshold, they could apply normal tax rules to balances above a certain threshold or even higher than normal tax rates, but under the same rules regarding realization as any other asset.