The question is why doesn't Labor just stick with Taxing realised gains?
Obviously Labor needs a bucket load of money to splurge and cannot wait for the investment cycle to complete.
The taxing of unrealised capital gains can become a serious issue during market volatility .
An example is Sarah has $6 million in Super, it has been deposited and any profits have been already taxed.
Prior to the start of the new Labor rip-off unrealised capital gains tax the market has gone down badly and Sarah's portfolio is worth $3 million at June 30th. She pays no tax as she isn't above $3 million.
Next year the market goes up again and Sarah gets back to square one with $6 million in her Super.
Now Albo's new tax will demand that she pay extra tax on $3 million, will this mean Sarah will pay a tax of $3 million x 30% ie $900,000 tax on money that actually hasn't increased from two years ago.
This system is fraught with dangers and I doubt whether Labor goons have thought all possibilities through.
