A fairer system for all-ish

After months and months, almost years, of criticism and delays, Treasurer Jim Chalmers finally caved to pressure on the $3 million super tax, also known as Division 296.

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In what can only be described as a complete backflip, Treasury appears to have finally realised just how absurd the taxing of unrealised capital gains and the lack of indexation truly was. Industry has also been given an extra 12 months to prepare, with the tax to now be effective from 1 July 2026.

In a move that may in some way help offset the loss of some of the revenues the original Division 296 might have earned the government, it's also now introduced a $10 million threshold, with balances over this amount to be taxed at 40% instead of 30%.

Of course, those with $10 million or more in super would likely have been the first to move when the tax was announced, putting their money elsewhere - but that in itself is a good thing and improves the fairness of the system that was designed merely to fund retirement, not inheritances.