In this Tax Tuesday edition of Wealth Coffee Chats, tax and financial adviser Anthony Warford breaks down the latest updates on the Div 296 Super Tax—a proposal the Treasury has been pursuing for more than two years. After significant public pushback, the government has adjusted aspects of the policy, including removing the controversial unrealised gains component. But with new thresholds and higher tax rates now on the table, the implications for Australia’s retirement system remain wide-reaching.

Anthony explains why the government is targeting large super balances, the broader economic pressures driving the changes, and how this new tax may affect all superannuation members—not just those with balances over $3 million. He also highlights the long-term risks, including increased complexity, reduced confidence in the super system, and the possibility of future tax changes to trusts, companies, and even individual wealth.

Episode Highlights:

• The latest Treasury update: unrealised gains dropped, but a new 40% tax rate added for very large balances.
• Why Div 296 exists—Australia’s widening budget gap and soaring costs of NDIS, aged care, and essential services.
• How the tax will increase administrative costs for every super fund, not just high-balance accounts.
• The growing complexity of superannuation legislation—and what it means for everyday investors.
• Behavioural shifts: how investors may delay gains or adjust strategies to avoid higher tax.
• The risk of eroding trust in Australia’s retirement system as government “moves the goalposts.”
• Potential future changes: Treasury signalling interest in wealth taxes, death duties, and trust reforms.

This episode is your clear, up-to-date overview of where Div 296 stands today—and what may be coming next.