Overview
- Treasurer Jim Chalmers confirmed cabinet approval for the reworked plan, with legislation to target July 2026 commencement and low‑income offset changes staged from July 2027.
- Balances between $3 million and $10 million would face a 30% earnings tax and those above $10 million a 40% rate, with both thresholds indexed to CPI.
- The overhaul removes taxation of unrealised gains, shifting to realised earnings based on taxable income, with consultation to settle technical details before drafting the bill.
- Treasury and government figures indicate the package will raise less than the original design, with a reduced near‑term take due to indexation and a one‑year delay and an estimated $4.2 billion four‑year budget impact reported.
- About 90,000 balances are expected to be affected at the $3 million tier and roughly 8,000 at the $10 million tier, as the government courts the Greens and crossbench for passage.