Loading ...The raven wasn’t quite accurate, it’s not coming into place this year – now {edit: actually not yet but maybe by 1st July 2025 as QTR says, I didn’t realise it was firmly back on the agenda for this year} – but with their large majority after the election earlier this month nothing can stop them if they want to. The pushback here is huge. Several articles pointing out that it won’t raise as much revenue as the govt expects detailing the many ways to avoid it. As usual, it would be the small Super investor who can’t afford the tax advisors to avoid it.
If it did happen we’ll have a little giggle at Ferret Hovel as a rellie can’t stop boasting about how well he’s done with his strip mall, which is in his Super fund. So he’ll be up for a sum well into six figures (if what he’s been saying is true) for tax which he’ll probably have to borrow; you can’t really sell an eighth of a strip mall.
I told ’em 35 years ago. The rules will change, only allow the absolute minimum into your super, put the rest in savings where you have more control. As the numbers build the government just won’t be able to keep their hands off it. The pot is now AU$4.2 tn (WOW! there’s that $4tn number again) and it’s all subject to a morass of legislation. I thought they would start to force people to own govt bonds, and I still think that they’ll use the next stock market crash to do that. For your own safety and peace of mind, of course. Annuities funding your retirement with interest from the government.
{edit} as a matter of interest, that $4.2tn pot is now so big that the large super funds can’t justify investing any more in the ASX as they hold such a large chunk of the market. They already have huge overseas stock holdings, but that’s where their growth will be directed now.