The $3 million superannuation tax threshold (Division 296 tax) is not indexed to inflation, meaning it remains fixed while property prices, share markets, and super balances naturally grow over time; consequently, even middle-income Australians who build wealth steadily through consistent investment over decades will eventually cross this threshold and become subject to the tax, despite it being framed as a tax only on the wealthy.
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Why the $3M Super Tax Will Hit More Australians Over TimeHinzugefügt:
Albanese says the new supertax only affects the wealthy, but in 20 years, it'll affect you. The division 296 tax kicks in at $3 million.
Right now, that sounds like a lot, >> [music] >> but the threshold is not indexed to inflation. It will never move.
Meanwhile, property prices double every decade, share markets compound, super balances grow.
>> [music] >> The average Australian who starts a business today, buys a commercial property in their SMSF, and invests consistently for 30 years, will absolutely cross $3 million. dollars.
Albanese just framed it as a tax on the rich.
He played you.
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