Overview

• The proposed tax reform targets the wealthiest 0.5% of Australians, affecting approximately 80,000 individuals with superannuation balances exceeding $3 million.
• The changes aim to address inequities in the superannuation system and are projected to raise $2 billion annually in additional revenue once fully implemented.
• Critics argue that taxing unrealized gains and the lack of indexation on the $3 million threshold could create challenges, including for cash-poor but asset-rich groups like farmers.
• Experts like Mike Callaghan and Jeremy Cooper support the reforms as a step toward equity and sustainability, despite acknowledging flaws such as complexity and controversy over unrealized gains.
• The legislation, which has sparked significant public and media debate, is set to take effect on July 1, 2025, pending expected Senate approval with Greens backing.