Hi, I'm Grant Abbott, your SMSF, wealth taxes, and family wealth protection specialist. If you've been following the news, you may have heard whispers about unrealised gains taxes — essentially, a form of wealth tax. While it currently targets self-managed super funds (SMSFs), it's only a matter of time before high-net-worth individuals are next in line.
What Is a Wealth Tax?
A wealth tax measures the value of your assets at the start and end of the year. If your total wealth exceeds a set threshold — say $3 million — the excess can be taxed at a fixed rate, for example, 15%.
This approach is similar to the rules that already apply to SMSFs, where balances above certain levels are closely monitored and taxed. Governments around the world are increasingly looking at wealth taxes as a way to redistribute wealth or fund social programs.
Why High-Net-Worth Families Could Be at Risk
The introduction of a wealth tax could be accompanied by gift taxes or other measures designed to prevent families from restructuring assets to avoid taxation. For example, giving money to family members could be restricted or taxed heavily.
If you wait until these measures come into effect, reorganising your finances could become costly and complex, potentially eroding a significant portion of your family's wealth.
Protecting Your SMSF and Family Wealth
There are proactive steps that families can take to safeguard wealth before new legislation hits:
- Diversify asset locations and types to reduce exposure
- Use legal structures such as trusts to protect family wealth
- Plan early for potential gift taxes and estate changes
- Consult experts who understand SMSFs, wealth taxes, and protective strategies
The key is to act now. Waiting until legislation is introduced could leave you scrambling and paying more than necessary.
Final Thoughts
Wealth taxes are coming, and Australia isn't immune. Smart families are already preparing — using SMSFs, trusts, and careful planning to protect their assets and future generations.
If you want to stay ahead and make sure your wealth is properly structured, contact me.
Don't wait until it's too late — being proactive today can save your family thousands, even millions, in taxes tomorrow.
First published on 4 September 2025. Tax and super rules change, so check the current position before acting. General information, not personal advice.