The controversial $3 million superannuation tax has sparked fierce (if not overblown) debate across Australia, with important questions about fairness, implementation challenges, and political accountability taking centre stage.
Targeting roughly 80,000 Australians (0.5% of the population) with super balances exceeding $3 million, this policy increases their tax rate from 15% to 30%. While Michael argues it affects only the wealthy, he admits there are several flaws that shouldn't be ignored.
First is the issue of taxing unrealised gains. Property investments within super funds could trigger substantial tax bills without generating actual cash flow to cover them. Joe asks, where does this money come from? Must investors liquidate assets or pay from personal accounts?
Even more troubling is the blatant exemption of federal politicians and defence force members from this tax increase. This "rules for thee, not for me" approach fundamentally undermines the policy's credibility and is something both the guys agree on.
The absence of indexation represents another serious flaw. Without automatic adjustment for inflation, this threshold will gradually capture more Australians as asset values naturally increase over time. However, Michael argues that the ceiling is still so high that it is unlikely to capture many average Australians while also highlighting the unlikelihood of a future government not adjusting the indexation rate.
Meanwhile, multinational corporations continue paying minimal tax on Australian resources they later sell back to us at premium prices. The government's willingness to target retirement savings while signing 40-year contracts with companies paying as little as 0.015% of profits in tax raises profound questions about priorities and fairness.
Want to learn more about protecting your financial future amid changing tax policies? Subscribe to The Finance Show and join the conversation about creating true economic equity in Australia.

Follow us for more property news and mortgage advice!
▸Website - https://itssimple.com.au
▸Instagram - https://www.instagram.com/itssimplefinance/
▸Facebook - https://www.facebook.com/itssimplefinance/
▸LinkedIn - https://www.linkedin.com/company/itssimple/

DISCLAIMER This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs before acting on it.