Australia’s high-net-worth investors are facing a pivotal moment. The Federal Government’s decision to cap superannuation concessions at $10 million, with a headline tax rate of 40 per cent on balances above this threshold, signals a fundamental shift in the nation’s retirement savings framework. For those accustomed to leveraging superannuation as a cornerstone of their wealth strategy, the landscape is changing—and fast. The New Reality: Superannuation’s Diminished Appeal T

At Wealth Effect Group, we are committed to keeping our clients informed of regulatory developments that may impact their financial strategies. The Australian Taxation Office (ATO) has recently signalled a significant shift in its approach to the use of family trusts by professionals, with a renewed focus on anti-avoidance provisions and personal services income (PSI) rules. Key Developments The ATO is preparing to release a final “practical compliance guide” (PCG) for person

The federal government has responded to fierce industry criticism, abandoning its plan to tax unrealised gains in superannuation. However, the revised Division 296 proposal, set to commence from July 1, 2026, will still impose significant new taxes on Australia’s largest super balances. Key Changes: No Tax on Unrealised Gains:  The most contentious element—taxing paper gains—has been dropped. Only realised earnings will be taxed, removing the risk of members facing tax bills