What Happened?
The federal government has officially scrapped the proposed $3 million superannuation tax, a move that Shadow Finance Minister Pat Conaghan says proves the policy was “flawed from the outset.”
The tax, which was due to start in 2025–26, would have imposed an additional 15% on earnings tied to unrealised gains for super balances over $3 million—meaning individuals could be taxed on asset values that had not been sold and might never be realised. The policy faced significant pushback from the superannuation sector, legal experts, business owners, farmers, and trustees—especially in the SMSF space.
Ultimately, the backlash worked.
Why It Matters for SMSF Trustees
This reversal has implications far beyond just high-balance accounts.
It shows how quickly government announcements can stir panic and confusion, even before legislation is finalised
It highlights the need for critical thinking, not fear in response to proposed changes
And it reminds us that super remains a long-term game, and one still vulnerable to short-term political opportunism
The issue wasn’t just about size. It was about fairness, logic, and liquidity. How can someone pay tax on a gain they haven’t realised? What if asset values fall after the tax is paid? These questions weren’t answered—because the policy didn’t make sense.
Key Takeaways
The tax on unrealised gains has been scrapped
But it’s not the last time government will target super. Stay alert, not afraid.
Time and pressure make a difference
This policy didn’t fall by accident—it fell because people spoke up.
Your fund, your voice, your future
Whether your balance is $300,000 or $30 million, your super deserves policies that are fair, clear and consistent.
Don’t Panic. Take Action. Create Change.
This reversal is a powerful reminder: don’t panic, don’t stress, and don’t spread fear every time the government makes an announcement. Instead, take informed action.
Government policy doesn’t become law overnight. It takes time—and during that time, your voice matters. By paying attention and putting consistent pressure on local, state, and federal representatives, we shape the national conversation.
This outcome proves it. People pushed back—and the government listened.
At Freedom Financial Solutions FFS, we guide our clients with confidence, not panic.