In one of the most underhanded moves in recent memory, the Labour government has quietly reintroduced a superannuation tax on unrealised gains — a tax that was already rejected twice before.
They tried it first through legislation. Then again by burying it in a credit card fee bill. Now they’ve brought it back a third time — under the radar and with spin doctors claiming it affects “only half a percent” of super balances.
But here’s the truth:
This tax is a Trojan horse. And if it passes, it will change the way Australians save, invest, and retire forever.
1. The Sly Way They’re Trying to Pass It
The government knows this tax is deeply unpopular. It was rejected in 2023, then again in 2024. But instead of accepting the will of voters, they’ve chosen the back door.
They buried the proposal in a completely unrelated bill — one regulating credit card surcharge fees — and quietly pushed it forward while the public was distracted by cost-of-living pain and international headlines.
This is legislation by deception — and every Australian, regardless of political stripe, should be concerned by the precedent it sets.
2. It’s Not Just “Half a Percent” — It’s a Time Bomb
Labour says it only affects super balances over $3 million. But that figure:
- Is not indexed to inflation
- Will trap more Australians over time through asset appreciation alone
- Disincentivises long-term saving and compounding
Today it’s 0.5%. In a decade, it could be millions of ordinary Australians, especially those who have built their retirement through property, equities, or Bitcoin inside SMSFs.
3. What Are Farmers Meant to Do?
Many farmers hold land in an SMSF — it’s their legacy, their security, and their retirement.
But this tax means:
- If land values rise, they owe tax — even if they’ve had a bad crop year
- No cash flow? Too bad. Pay the tax anyway.
- What’s the solution? Sell off parts of their land?
This is rural asset cannibalisation. It punishes stewardship and productivity with a tax that assumes wealth = liquidity. It doesn’t.
4. Tearing Up Paul Keating’s Legacy
Paul Keating helped create a super system based on incentive, not punishment. A system that rewarded discipline, self-direction, and generational thinking.
This tax reverses that vision. It sends a message:
“Build wealth, and we’ll come for it. Even if you haven’t sold. Even if you’re not liquid.”
It’s anti-growth. Anti-independence. And a total betrayal of super’s founding principles.
5. Unrealised Gains Tax: The World Is Laughing at Us
No serious economy taxes paper gains. It’s absurd.
- How do you value volatile or illiquid assets year-to-year?
- What happens if those values drop after you’ve paid the tax?
Even Norway, which introduced wealth-based taxation, saw billions in capital flight as the wealthy simply packed up and left. Their tax take collapsed.
Jim Chalmers will soon realise the same: the money will leave, the rich won’t stick around, and the tax won’t raise what he hopes.
And when it falls short? They’ll target other assets, broaden the thresholds, and keep coming.
6. “Modest Change”? That’s an Insult
Jim Chalmers keeps saying this is a “modest” tweak. That it’s about “slightly fewer concessions.”
Let’s be honest: that’s spin.
- Taxing unrealised gains is not modest — it’s imbecilic. It’s complete clown world that this is even up for debate!
- Claiming it won’t hurt Australians is dishonest
- And watching him smirk as he says it? It makes your stomach turn
This isn’t leadership. It’s smug economic vandalism disguised as fairness.
7. Superannuation Is Concessional for a Reason — Don’t Punish Australians for Doing the Right Thing
The entire point of concessional tax treatment for superannuation is to reduce the future burden on the government. Australians are incentivised to save and invest for retirement, so they don’t end up dependent on the age pension — a system already strained by demographic shifts and budget pressures.
Self-managed super fund (SMSF) trustees are doing exactly what the government encouraged:
- Taking personal responsibility for retirement
- Taking on risk and volatility in exchange for long-term rewards
- Easing the pressure on public finances by aiming to be fully self-funded
And yet, this new tax punishes them.
Instead of rewarding independence, it penalises success.
Instead of encouraging long-term planning, it creates short-term tax traps.
SMSF trustees should be applauded for building their own future and reducing the taxpayer burden.
8. SMSFs Are the Backbone of Australia’s Startup Ecosystem — This Tax Will Kill It
Here’s what almost no one in Canberra seems to understand:
Roughly 50% of early-stage capital in Australian startups comes from SMSF investors.
These are doctors, small business owners, and family offices pooling their super to support the next generation of Australian innovation — from fintech to clean energy to medical technology.
But under this tax:
- If a startup receives a high valuation in year one, the SMSF pays tax on the paper gain
- If the company goes under the next year — which many startups do — there’s no refund
- The SMSF investor is left with nothing but a tax bill
This is insane. It introduces asymmetric risk that will destroy SMSF appetite for venture capital — and with it, Australia’s startup pipeline.
Even more ironic?
Greens-aligned clean energy and sustainability ventures will be hit the hardest.
The very startups the Greens champion will struggle to raise capital — because their early backers can’t afford to be taxed on temporary, illiquid valuations.
This tax kills innovation. It kills entrepreneurship. It kills green tech.
If passed, it will drive capital offshore, leave startups unfunded, and cripple Australia’s future economy.
Final Thoughts: Draw the Line — Or Watch It Move Again
This tax is the first domino.
If we accept it, we signal that:
- Any gain can be taxed — even if you haven’t sold
- Control over your super isn’t really yours
- The rules can be rewritten whenever they feel like it
But if we reject it — loudly, intelligently, and strategically — we can protect the freedom to build wealth without political interference.
Sign the petition by Geoff Wilson and tune into this great interview with Geoff and Peter Dunworth by Sean Clarke
Take action. Exit the big funds. Build your SMSF. Allocate to Bitcoin.
Visit BitcoinSuperannuation.com.au to protect your future before Canberra comes for it.