In this Australian Retirement Podcast episode, your hosts Drew Meredith from Wattle Partners and James O’Reilly from Northeast Wealth discuss the significant changes to Australia’s proposed Division 296 superannuation tax legislation.
The government has made substantial amendments to the controversial super tax policy, addressing many of the concerns raised by financial advisers, industry groups, and retirees. The most significant change? The removal of tax on unrealised capital gains – a world-first proposal that would have set a dangerous precedent.
Drew and James explain what the original proposal entailed, why it was problematic, and what the new changes mean for Australians with substantial superannuation balances. They also discuss the introduction of a new $10 million threshold, indexation of caps, and the delayed implementation timeline.
Whether you’re approaching retirement with a growing super balance or already retired and managing your wealth, this episode provides crucial insights into how these tax changes might affect your retirement planning strategy.
If you like this Australian Retirement Podcast episode on the Division 296 changes, you’ll love the series. Don’t forget to subscribe for weekly shows on Apple, Spotify, YouTube or wherever you get your podcasts.
Topics Covered Today
- What’s happening with gold prices and should you be buying gold NOW
- Division 296 Tax Explained: The original proposal and its problems
- Breaking Changes: Removal of unrealised capital gains tax
- Introduction of the $10 million threshold with 40% tax rate
- Who will be affected: 90,000 at the $3m threshold, 8,000 at $10m
- Outstanding issues with defined benefit pensions
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