A smarter way to tax high super balances

In their quieter moments, many people with more than $3 million in super feel it’s reasonable to pay more tax on their super savings. Their objection to the proposal before parliament (known as “division 296” tax) is often
not about paying more tax – it’s that the method proposed for working it out feels wrong.

Super is often criticised for being complex. When it comes to this tax, the government has tried to keep things simple. But in doing so, fairness has completely gone out the window.