Is This Really a Backdown — or the Beginning of Something Bigger?
The government has just “retreated” on its controversial $3 million super tax (Division 296) after months of backlash.
They’re now saying the tax rate will be 30% and 40%, not the 15% that applies to most super funds.
But here’s what they don’t tell you — and why we’re not celebrating just yet.
The Truth Behind the “30% and 40% Tax” Headline
It sounds like they’re creating a brand-new 30% or 40% tax, right?
In reality, that’s misleading.
Super funds already pay 15% tax on earnings.
What the government is doing is adding another 15% (making it 30%) or another 25% (making it 40%) on top of that for higher balances.
So this isn’t a “new rate.”
It’s a tax on top of a tax — and it’s being dressed up as a fairness measure.
But the truth is, it’s laying the groundwork for something much bigger.
A Setup for a Future Wealth and Death Tax?
This move feels less like a one-off correction and more like a test balloon.
We believe this is the government’s way of getting Australians used to the idea of 30% and 40% taxes on wealth — just like the wealth and inheritance taxes already in place in the UK and parts of Europe.
Think about it:
Call it a “super tax on the rich.”
Introduce the same rates (30%–40%) for “fairness” across wealth in general.
Expand it to include death and gift taxes, so families can’t transfer assets without paying up.
If they move down that path, you can bet they’ll make it “effective immediately” so Australians can’t restructure in time.
Why Now? The Crisis Playbook
We’ve seen this pattern before.
Governments create or capitalise on a crisis, then present the “solution” — higher taxes.
And right now, the warning signs are flashing:
Rising global debt and inflation
Fragile share markets
Banks tightening credit
Talk of a “reset” in financial systems
A financial shock could give them the perfect excuse to “tax the wealthy” in the name of “budget repair” and “social equity.”
But make no mistake — ordinary Australians with property, super, and savings will be caught in the net.
What You Can Do — Before It’s Too Late
At FreedomFFS, we believe the time to act is now, not after the headlines hit.
When these taxes arrive — and history suggests they will — they’ll come fast, with immediate effect and no chance to restructure.
Here’s what we recommend:
Review your super balance and structure — make sure you’re not exposed unnecessarily.
Consider setting up a Family Protection Trust or Wealth Preservation Strategy to safeguard assets from future “wealth,” “death,” and “gift” taxes.
Get professional advice before new rules lock you in.
The government has shown its hand.
This “super tax” is just the beginning of a bigger conversation about who really owns your wealth — you, or them.
No Fear. Just Smart
This isn’t fear-mongering.
It’s about being realistic — and prepared.
The so-called “retreat” on the $3 million super tax isn’t a win for common sense.
It’s a warning shot.
If you want to make sure your family’s wealth stays yours, not Canberra’s, start planning now — because when the next tax wave hits, it may be too late.
Reach out. Email enquiries@freedomffs.com.au
