A home for tax nerds.
Hi, I’m Ken. Being a stay at home Dad to two amazing boys and one awesome wife is wonderful, but it does keep me away from my fourth love – TAX. So here I write on what is happening in tax that exits me, and hopefully it will excite you as well…
Labor’s new super tax applies to Unrealised Capital Gains… Crazy!!!
Bob has his $1.85m farmland in his SMSF and $150,000 in cash (from renting the farm land to the business). The Government decides to rezone the area residential, and his land is now worth $5 million. He has no earnings on the cash, no contributions, no withdrawals but his earnings are $3 million ($5 million…
More info on the proposed super changes from 1 July 2025
A little more clarity… Individuals with total superannuation balances over $3 million at the end of a financial year will be subject to an additional tax of 15% on certain earnings. Earnings are calculated by the difference in total superannuation balance at the start and end of the financial year, adjusting for withdrawals and contributions.…
How do we apply the 30% on earnings for super funds over $3 million to government defined benefit pensions? I think it is easy!
The 30% only applies during the accumulation phase, and there is no accumulation phase for a defined benefit fund, as the government employees in these schemes are not accumulating anything. Rather they are hoping the Government will be solvent enough when they retire to give them an amount of money each year. But obviously, paying…
A few easy questions about a 30% tax rate for super funds with more than $3,000,000 in assets
From 2025‑26, the tax rate applied to earnings for superannuation balances above $3 million will be 30%. UPDATE – GOVERNMENT CLARIFIES TO THE 30% IS AN EXTRA TAX AFTER YEAR END ONLY ON EARNINGS ABOVE $3 MILLION I assume this means that a super fund in accumulation phase that has a total superannuation balance at…
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