Wealth tax on unrealized asset gains
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Windfall Gains Tax is a new Victorian State Government tax on land set to be introduced from 1 July 2023. The tax will be triggered where the value of land increases 'due to the actions of government'. In this context, the 'actions of government' are essentially rezoning land.
Cirt said:
What a scam.
Rate of windfall gains tax
For a rezoning of land that results in a taxable value uplift:
- more than $100,000 but less than $500,000: the tax will apply at a marginal rate of 62.5% on the uplift above $100,000
- $500,000 or more: a tax rate of 50% will apply to the total uplift
Taxing unrealised gains on superannuation is totally unworkable - Senate Speech 8.03.23 (Starts at 4:05)
https://youtu.be/FBLcHSTw5YU?t=245
Link to 4:05
To get back to some of this original super stuff, personally, I've always been on the record as saying superannuation is a tax rort and it does favour the wealthy. But, can I say: this proposed rule that we're going to tax unrealised gains is totally unworkable. I'm not saying that as a politician. I'm saying that as a person who spent 30 years in finance, reconciling balance sheets.
I can assure you that, if you think you're going to be able to calculate unrealised gains in any equitable manner, you are kidding yourself. What's going to happen is that you're going to add compliance costs, so you're going to have to pay for an auditor or a valuer to value these assets. Then you're going to have liquidity problems because you're going to have to sell an asset to actually pay the tax. Then, the third problem is that you're going to generate uncertainty, because people aren't going to know what the value of an asset will be deemed to be before June 30. I would ask that you at least reconsider that unrealised gains proposition, because it's unworkable.
Treasurer defends plans to tax unrealised gains in super
The Treasurer has defended a decision to include unrealised gains in the calculation for the higher rate of tax on super balances above $3 million and dismissed a backlash from the accounting industry.
?That?s the advice of Treasury, working with other relevant agencies, that that is the most efficient, simplest and best way to go about it and so that?s what we intend to do,? Mr Chalmers said on Sunday.
https://www.accountantsdaily.com.au/super/18261-treasurer-defends-plans-to-tax-unrealised-gains-in-super
https://youtu.be/FBLcHSTw5YU?t=245
Link to 4:05
To get back to some of this original super stuff, personally, I've always been on the record as saying superannuation is a tax rort and it does favour the wealthy. But, can I say: this proposed rule that we're going to tax unrealised gains is totally unworkable. I'm not saying that as a politician. I'm saying that as a person who spent 30 years in finance, reconciling balance sheets.
I can assure you that, if you think you're going to be able to calculate unrealised gains in any equitable manner, you are kidding yourself. What's going to happen is that you're going to add compliance costs, so you're going to have to pay for an auditor or a valuer to value these assets. Then you're going to have liquidity problems because you're going to have to sell an asset to actually pay the tax. Then, the third problem is that you're going to generate uncertainty, because people aren't going to know what the value of an asset will be deemed to be before June 30. I would ask that you at least reconsider that unrealised gains proposition, because it's unworkable.
Treasurer defends plans to tax unrealised gains in super
The Treasurer has defended a decision to include unrealised gains in the calculation for the higher rate of tax on super balances above $3 million and dismissed a backlash from the accounting industry.
?That?s the advice of Treasury, working with other relevant agencies, that that is the most efficient, simplest and best way to go about it and so that?s what we intend to do,? Mr Chalmers said on Sunday.
https://www.accountantsdaily.com.au/super/18261-treasurer-defends-plans-to-tax-unrealised-gains-in-super
