Australia’s Unrealized Gains Tax Will Be A Lesson In Economic Suicide
Submitted by QTR's Fringe Finance
I’ve spent years warning about the economic dangers of policies that attempt to tax wealth before it’s realized, and now, like a slow-motion train wreck, we’re about to witness exactly why those warnings matter.
Australia’s new move to tax unrealized capital gains is one of the most reckless policy decisions I’ve ever seen — and keep in mind, I had front row seats to an “Inflation Reduction Act” that added more than $1 trillion in spending.
Taxing unrealized gains is equal parts outright f*cking mathematically insane and cut-and-dry authoritarian. And while I’m appalled by the policy itself, there’s a perverse part of me that’s almost glad it’s happening in Australia first—because the disastrous results will be on full display for the world to see.
Starting in July 2025, the Albanese government is set to debut its latest economic masterstroke: taxing imaginary money. That’s right—if you’ve got more than $3 million sitting in your superannuation, not only will you get slapped with a 30% tax, but it doesn’t even matter if you actually made any money.
Didn’t sell anything? Didn’t cash out? Never saw a cent? Tough luck—Big Brother took a peek at your account, saw some numbers went up, and decided you owe them a slice of your hypothetical success.
This isn’t just bending the rules of how taxation and private property works—it’s snapping them clean in half and using the pieces to beat your rights to death. For as long as economies have existed, the deal was simple: you sell an asset, you make a profit, and then you pay tax. You know, after you’ve actually made money. Because taxing cash that doesn’t exist yet is the kind of thing you expect from crackheads playing Monopoly, not national policy.
But here we are. Australia is now sprinting headfirst toward a future where you get billed for wealth that isn’t liquid, isn’t realized, and, if the market tanks tomorrow, might never even exist. It’s like being forced to pay income tax on the raise your boss almost gave you but didn’t, or footing the bill for the lottery jackpot on the billboard on the side of I-95 that you didn’t win.
The fallout is not rocket science. People will be forced to liquidate assets—probably the wrong ones, at the worst possible time—just to scrape together enough real money to cover taxes on their fake money. Don’t have the cash lying around to pay that bill? Sounds like a you problem. Better start liquidating. And this isn’t just stocks we’re talking about. Real estate? Private businesses? Long-term investments you hold precisely because they’re supposed to be safe and stable? All fair game in a fire sale.
But wait, it gets even better. That $3 million threshold? It’s not even indexed to inflation. So as the value of money inevitably erodes, more and more regular people will find themselves dragged into this mess. It’s like the $1,200 handpay rule in Atlantic City and Las Vegas: it was created in the 1800s when $1,200 was enough to buy a private island, but as the purchasing power of the dollar has eroded, the rule has been kept in place, with the recalibration serving as way to monitor more and more transactions...(READ THIS FULL ARTICLE, 100% FREE, HERE).