The government’s proposed superannuation tax on profits you haven’t earned or may never earn is not only grossly unfair; it will have significant consequences for the Australian economy.

Under the proposed changes, the government is looking to tax unrealised gains on super balances over $3 million. This means that if the value of your assets significantly rises in one year, tipping you over the $3 million cap, and then disappears the following year, you must still pay tax on gains from the first year, even though those gains may never be realised.