The effective tax rate paid by superannuants with more than $3 million in their accounts will be about 22 per cent due to franking credits and capital gains tax discounts – below the 30 per cent headline rate.
Unrealised gains, such as an increase in the market value of shares that have not been sold, will also be captured by the new tax.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
