Chalmers’ super tax is a time bomb for all Australians

I’ve been warning about this tax for the last two years. I’ve written open letters to the Treasurer, published dozens of articles, and even stepped outside my comfort zone to make TikTok videos — all to warn Australians, especially younger generations, that this policy doesn’t just attack their super; it sabotages their future.

The proposal to tax earnings on super balances above $3 million and, more disturbingly, tax unrealised capital gains, has drawn fierce criticism from across the superannuation industry. But Ms Randeria is one of the few experts calling out the full scope of damage this will cause.

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Point 1: A relentless advocate silenced by a tone-deaf government

Jim Chalmers has failed to listen — not to industry professionals, not to fund members, and certainly not to reason. I’ve spent years advocating for a fair and stable superannuation system. This government’s refusal to consult meaningfully, despite massive pushback, is not only arrogant — it’s dangerous.

Point 2: Triple taxation of single-income families – a cruel and callous burden

High-income single earners already pay 30 per cent tax on their concessional super contributions under Division 293. There is no family means testing. If the breadwinner dies, their estate can potentially pay another 15 per cent in death benefits tax. And now, if that balance breaches the $3 million unindexed cap, another 15 per cent is slapped on the excess — including unrealised gains. That’s up to 60 per cent in tax on someone who followed the rules. Chalmers wants to triple-tax grieving families.

This policy will gut incentives for Australians to save and invest for retirement, and inevitably swell the ranks of those dependent on the Age Pension.

Point 3: SMSFs with property to be slammed by dual taxation – taxed twice for the same unrealised gain

If your SMSF owns property, you’ll now be taxed on its unimproved land value every year via land tax, and again on its rising overall value via this new super tax — before you’ve sold a single brick. That’s double taxation on imaginary profits. Trustees could be forced to sell prime assets just to pay the ATO.

To call that ‘equity’ is an insult to every hardworking Australian.

Point 4: A tax so broken it taxes refunds – yes, you read that right

Here’s how twisted this legislation is. It even taxes tax refunds. If your fund receives franking credit refunds from Australian share dividends — refunds that are supposed to support retirees — these refunds will be counted as net income in the Division 296 formula. That’s right: the government will tax a proportion of your tax refund. Chalmers is taxing the tax office’s own refund system. It’s bureaucratic madness.

Point 5: A dangerous precedent that threatens all asset classes

Let’s be crystal clear. There is currently no structure in Australia — not family trusts, not companies — where unrealised capital gains are taxed. Chalmers is setting a legal and political precedent that could ripple far beyond super. If this becomes law, what’s stopping the government from taxing the unrealised gains on your home, your investment properties, your shares, your business, your unpaid family trust entitlements, your private company shareholder accounts?

This is not tax reform. It’s economic vandalism. Division 296 is a Frankenstein’s monster of poor policy, rushed consultation, and ideological spin. I’m calling on the Senate and every Australian who cares about their future to demand this bill be scrapped — permanently.

This is our retirement we’re talking about. Chalmers needs to listen, or step aside for someone who will.