The idea of paying tax on something you haven’t actually received seems strange, right? That’s exactly what’s being proposed under the Albanese Government — a tax on unrealised gains. And while it’s currently wrapped in superannuation policy and aimed at balances over $3 million, there’s concern this is just the beginning.
What Is an Unrealised Gain?
Let’s break it down simply.
Imagine you bought a property for $500,000. A year later, that property goes up in value and is now worth $550,000. You haven’t sold it. You haven’t pocketed a single dollar. But under this proposal, you’d be taxed on that $50,000 increase — even though you haven’t actually made the money.
In other words, you’d owe tax on paper profit — not real money in your bank account.
The Super ‘Sneak In’ Strategy
Right now, the government is introducing this through superannuation. They’ve said it only applies to people with super balances above $3 million. But here’s where many are getting worried.
Historically, when new taxes like this come in:
- There’s public backlash.
- It gets some media heat.
- People adjust and forget.
- Then, the rules change.
The fear is that this $3 million threshold will gradually shrink to $2 million… then $1 million… and eventually start applying outside of super. What begins as a “tax on the wealthy” could end up being a tax on everyday Australians.
But Super Is Meant to Grow Wealth
Some public commentators have argued that superannuation wasn’t meant to help people build wealth. That it’s only for retirement. But that’s exactly how retirement is funded — through long-term investment.
You put a portion of your salary into super (currently around 11%), and it’s invested into assets like shares and property. Over time, those investments grow. That’s the entire model. So, taxing unrealised growth goes against the very system people have been told to trust their futures with.
Why It’s a Problem for All Australians
While $3 million might sound like a lot, it’s not out of reach for regular people building wealth over time. A couple of properties sitting in super, held for decades, could push someone over that limit.
And if this becomes normal? It won’t stop at super balances. It could spread to personal investment properties, shares, and other assets — punishing people who’ve worked hard to build something for themselves.
Where’s the Money Supposed to Come From?
The bigger issue? You’re being taxed on money you haven’t received. There’s no sale, no income, no cash. Just an estimated value increase. So how are you meant to pay the tax?
You’d either need to sell your asset — potentially losing out on long-term growth — or cough up the money from somewhere else. That doesn’t work for average Aussies trying to build security.
It’s a Management Problem, Not a Revenue Problem
When it comes to budgeting — for households or governments — there are usually only two issues:
- Not enough income
- Poor money management
Most Australians earn decent money. The real struggle is knowing how to use it wisely. The same can be said for the government. They collect billions in taxes every year but still can’t seem to balance a budget.
So instead of coming for more of our money, the focus should be on doing better with what they already have.
Final Thoughts: Don’t Get Desensitised
This tax might seem far off or “only for the rich,” but the concern is how these things slowly spread. Once it’s introduced and the noise dies down, the rules change. The goalposts shift. And before long, everyday investors are affected.
Australians shouldn’t stay silent on this. It’s not just about tax policy — it’s about fairness, financial freedom, and the right to grow your future without being penalised for success.
Stay informed. Ask questions.
