Australia proposes unprecedented tax on unrealised gains targeting high superannuation savings

Australia's Labor government, led by Anthony Albanese, is proposing a new tax on "unrealised gains," which would tax the increased value of assets that have not been sold. This approach is unprecedented globally and differs from the traditional capital gains tax, which is applied only upon sale. The proposed tax would specifically target superannuation savings exceeding $3 million, starting in July 2025. Critics, including tax experts, argue that the plan is overly complex and could create significant challenges for both taxpayers and the Australian Taxation Office in its implementation. Concerns have been raised about the practicality of taxing unrealised gains, especially for individuals with illiquid assets, such as property. This policy marks a significant shift in Australia's tax landscape, drawing comparisons to historical attempts in other countries that faced administrative difficulties.