WEBVTT - This OUTRAGEOUS unrealised CGT is everyones problem... PLUS what you can do about it! 0:00:00.080 --> 0:00:02.920 Welcome to Sugar Mamma's Fireplay, the podcast that helps you 0:00:02.960 --> 0:00:07.480 build financial independence, create long term wealth, and protect your 0:00:07.560 --> 0:00:12.240 financial future with smart, mindful money decisions. I am your host, 0:00:12.280 --> 0:00:16.200 financial planner, Canna Campbell. In today's episode, we're tackling something 0:00:16.239 --> 0:00:20.160 that has sparked a lot of concern even fury in 0:00:20.239 --> 0:00:24.880 the financial world. That is the proposed thirty percent tax 0:00:25.040 --> 0:00:31.560 on unrealized capital gains inside superannuation for account balances over 0:00:31.800 --> 0:00:36.400 three million dollars. Now, I know that that number may 0:00:36.560 --> 0:00:40.160 sound far away for a lot of people, including myself, 0:00:40.640 --> 0:00:46.880 but this proposal has serious implications for all Australians, not 0:00:47.000 --> 0:00:50.800 just those with large super account balances. You see this 0:00:51.120 --> 0:00:56.440 potential tax, this changing rules actually represents a major shift 0:00:56.640 --> 0:01:00.200 in how our wealth could be taxed and even a 0:01:00.320 --> 0:01:03.560 road away, and we need to understand what this actually 0:01:03.680 --> 0:01:07.960 means for us and our long term financial security and 0:01:08.120 --> 0:01:12.640 retirement strategies. Now, this episode is not just for people 0:01:12.680 --> 0:01:16.440 with self managed super funds or high balances. This is 0:01:16.720 --> 0:01:20.679 for superannuation account holders like you and I, everyday people 0:01:21.200 --> 0:01:24.960 and of course everyone or anyone who actually wants to 0:01:25.040 --> 0:01:29.399 understand and protect their financial future, particularly if they do 0:01:29.520 --> 0:01:34.640 plan on having a long, luxurious and secure retirement. So 0:01:35.120 --> 0:01:39.240 let's get into this straight away. Bocome back everyone. As explained, 0:01:39.280 --> 0:01:44.479 we're going to talk about this proposed superannuation tax. Now 0:01:44.600 --> 0:01:48.440 what exactly is this? So Labor is proposing from the 0:01:48.480 --> 0:01:53.080 first of July in twenty twenty five, superbalances above three 0:01:53.160 --> 0:01:58.640 million dollars will face an extra fifteen percent on unrealized gains. 0:01:59.400 --> 0:02:02.920 The con t reversial part here is the word unrealized. 0:02:03.640 --> 0:02:06.640 The unrealized gains are going to be taxed. So what 0:02:06.640 --> 0:02:09.320 this means is even if you don't actually sell your 0:02:09.360 --> 0:02:13.160 asset within super or even receive any income. For example, 0:02:13.200 --> 0:02:16.320 you know your superannuation own say a property, and it 0:02:16.360 --> 0:02:19.120 grows one hundred thousand dollars just over the three million 0:02:19.160 --> 0:02:22.080 dollar mark, and say it's gone from being three million 0:02:22.120 --> 0:02:24.520 dollars to say three point one million dollars, So you've 0:02:24.520 --> 0:02:26.600 got one hundred thousand dollar game. You might have to 0:02:26.639 --> 0:02:30.480 come up with an additional thirty thousand dollars in tax 0:02:31.000 --> 0:02:34.720 without actually having to sell that property or even receive 0:02:34.840 --> 0:02:40.200 necessarily any rental income from that property. So this isn't 0:02:40.240 --> 0:02:43.320 just like a tax increase, it's actually a change in 0:02:43.400 --> 0:02:49.280 the underlying definition of taxable income because normally you only 0:02:49.320 --> 0:02:53.160 pay capital gains tax when you actually sell that asset. 0:02:54.040 --> 0:02:57.519 This is an unrealized definition and this is the biggest 0:02:57.560 --> 0:03:01.200 concern and worry and really what is making me really 0:03:01.240 --> 0:03:04.720 frustrated and angry because what it does is it undoes 0:03:04.840 --> 0:03:08.480 all the trust, all the attractiveness and the value that 0:03:08.520 --> 0:03:14.600 has been built since superannuation began in the early nineties. Now, 0:03:14.880 --> 0:03:20.240 why is this so dangerous? Is this really setting a precedent? Well, yes, 0:03:20.320 --> 0:03:24.600 I think so. You see, Australia's tax system has always 0:03:24.600 --> 0:03:28.840 been built around realized gains, so you know, you only 0:03:28.919 --> 0:03:31.760 once you had the money in your actual pocket after selling. 0:03:31.880 --> 0:03:34.840 So for example, you know, you buy property for say 0:03:34.880 --> 0:03:36.640 four hundred thousand dollars, and then you go and sell it, 0:03:36.720 --> 0:03:39.440 say five years later, for say six hundred thousand dollars, 0:03:39.920 --> 0:03:42.960 you've technically made a two hundred thousand dollars capital gain 0:03:43.400 --> 0:03:46.920 and you would only pay tax on that gain once 0:03:46.960 --> 0:03:49.080 you have sold it. And you would pay tax on 0:03:49.160 --> 0:03:52.760 that two hundred thousand dollars gain depending on your you know, 0:03:52.800 --> 0:03:54.920 how long you'd held the asset for where it's held 0:03:54.960 --> 0:03:59.080 and of course your marginal tax rate. Now, if this 0:03:59.200 --> 0:04:03.440 is passed by Senate, this could actually completely change the 0:04:03.520 --> 0:04:06.560 system because what it is is allowing for taxation to 0:04:06.600 --> 0:04:11.040 be triggered on paper wealth, not real wealth. So even 0:04:11.080 --> 0:04:15.160 though you haven't sold that asset, I'll use that example 0:04:15.160 --> 0:04:17.080 again of that four hundred thousand dollars asset, even though 0:04:17.120 --> 0:04:19.440 it isn't actually technically applicable because we're talking about three 0:04:19.440 --> 0:04:22.279 million dollar bounces here. But in that example I just used. 0:04:22.960 --> 0:04:25.880 What this is saying is, well, guess that property you 0:04:25.920 --> 0:04:27.839 bought for four hundred thousand is now worth six hundred 0:04:27.839 --> 0:04:29.520 thousand dollars. Even though you haven't sold it, We're going 0:04:29.560 --> 0:04:33.920 to tax you anyway. So this is the frustrating part. 0:04:34.080 --> 0:04:37.919 You are still expected to pay some tax because of 0:04:37.960 --> 0:04:43.800 the perceived value. Now, if this is past and it's 0:04:43.839 --> 0:04:47.679 put into place, it could spread to investment properties outside 0:04:47.680 --> 0:04:53.159 of super It could include business assets, share portfolios, potentially 0:04:53.360 --> 0:04:57.119 the family home. This is a slippery slope, you see. 0:04:57.200 --> 0:05:01.760 Once this mechanism exists, the future governments can expand it. 0:05:02.320 --> 0:05:05.359 So it's think of it as like winning the lottery, 0:05:05.640 --> 0:05:08.719 or being taxed on winnings for the lottery before you 0:05:08.760 --> 0:05:12.440 actual numbers have been drawn. This is not a wealth tax, 0:05:12.640 --> 0:05:14.640 it's a fear tax. And at the end of the day, 0:05:15.040 --> 0:05:18.520 does this tax actually encourage us to work hard, contribute 0:05:18.520 --> 0:05:21.679 to our super and actually feel empowered about our financial future. 0:05:22.040 --> 0:05:26.360 Hell no, it certainly doesn't. And this is seriously destructive, 0:05:26.880 --> 0:05:30.280 dangerous and a huge concern for so many people within 0:05:30.400 --> 0:05:34.880 my industry as well as everyday Australians. So let's go 0:05:34.920 --> 0:05:37.400 and talk about the impact it has on self managed 0:05:37.440 --> 0:05:40.760 super funds, which I see is the biggest worry. Now, 0:05:40.960 --> 0:05:44.560 a lot of self managed super funds hold illiquid assets 0:05:45.000 --> 0:05:46.760 and that was probably one of the main reasons why 0:05:46.760 --> 0:05:48.640 they used a self managed super fund because of that, 0:05:48.800 --> 0:05:52.000 you know, flexibility, and they're you know things like property, 0:05:52.520 --> 0:05:57.200 business premises, like commercial property, private equities, you know, including startups. 0:05:57.279 --> 0:06:00.200 And then farmers. There are a lot of farmers who 0:06:00.240 --> 0:06:04.120 actually own their farms within a self managed superfund. Now, 0:06:04.320 --> 0:06:09.240 these types of assets cannot actually be sold easily to 0:06:09.279 --> 0:06:13.159 go and pay those tax bills. What this could mean 0:06:13.279 --> 0:06:16.520 is if this is past and a farmer gets hit 0:06:16.560 --> 0:06:19.160 with a bill and the farmer is a trustee of 0:06:19.200 --> 0:06:21.400 the self managed super fund, they could be forced to 0:06:21.440 --> 0:06:25.599 sell that entire farm to cover that tax bill for 0:06:25.680 --> 0:06:31.239 that year on a gain that they haven't actually received. Now, 0:06:31.440 --> 0:06:33.320 this is another problem that comes on this. There's a 0:06:33.440 --> 0:06:37.840 huge administration nightmare. How are we going to actually understand 0:06:37.920 --> 0:06:41.200 the valuations? This is really difficult. How do you value 0:06:41.200 --> 0:06:44.680 a farm? You know? How do you value a startup, 0:06:44.800 --> 0:06:47.280 particularly you know where it is in its journey and 0:06:47.320 --> 0:06:49.680 the risks it's taken and the debt and so forth. 0:06:49.720 --> 0:06:53.200 This is really difficult, and this is also incredibly expensive. 0:06:53.800 --> 0:06:57.080 You would really need to get a highly skilled accountant 0:06:57.120 --> 0:06:59.960 with a really niche you know, expertise to be able 0:06:59.960 --> 0:07:04.520 to do that would be incredibly expensive and also incredibly inconsistent. 0:07:04.960 --> 0:07:06.960 How can you actually know the true value of an 0:07:07.000 --> 0:07:10.560 asset if it isn't actually being sold. There's no one 0:07:10.600 --> 0:07:13.040 actually says they're saying, I'll give you four million dollars 0:07:13.080 --> 0:07:14.720 for that, or three million dollars that or nine million 0:07:14.760 --> 0:07:17.960 dollars for that. Like, how do we understand the true value? 0:07:18.000 --> 0:07:19.760 Like what is the formula that we're going to be 0:07:19.760 --> 0:07:22.800 able to use here? And the other big issue, which 0:07:22.840 --> 0:07:26.080 is particularly around startups, which a lot of you know, 0:07:26.160 --> 0:07:30.400 the big superannuation funds actually have exposure to, is the 0:07:30.520 --> 0:07:35.280 volatility You know, a business might be worth nothing when 0:07:35.320 --> 0:07:38.200 it first starts up, but it hits gold, you know, 0:07:38.240 --> 0:07:42.040 particularly maybe technology put a huge amount of money into it, 0:07:42.040 --> 0:07:43.520 and then all of a sudden it's gone for being 0:07:43.520 --> 0:07:46.920 worth nothing to say, thirty forty million dollars. That's how 0:07:47.080 --> 0:07:50.080 the volatility can exist for a lot of these, you know, 0:07:50.280 --> 0:07:53.920 venture capitalists. So how are we going to cope with that? 0:07:54.000 --> 0:07:57.080 Does that mean the whole business gets sold? You know, 0:07:57.200 --> 0:08:01.600 you imagine owning a residential investment inside a self managed 0:08:01.640 --> 0:08:04.320 super fund that you set up and it increases in 0:08:04.400 --> 0:08:07.679 value due to inflation, and that just tips you over 0:08:08.040 --> 0:08:11.160 that three million dollar threshold, but you don't want to 0:08:11.200 --> 0:08:14.960 sell it. But you've still receiving a massive tax bill, 0:08:15.520 --> 0:08:17.560 and then you don't actually have the cash within your 0:08:17.600 --> 0:08:21.120 super to actually fund that annual tax bill. So what 0:08:21.160 --> 0:08:22.960 does that mean? Well, you don't have the cash to 0:08:22.960 --> 0:08:25.760 pay the tax bill. You're over the three million dollar threshold. 0:08:26.000 --> 0:08:28.600 You're going to have to sell that entire property. Now 0:08:29.720 --> 0:08:32.160 what are you going to do? You can't sell the 0:08:32.200 --> 0:08:35.920 front door, the bedroom, the backyard. You're going to have 0:08:35.960 --> 0:08:39.880 to sell that entire property, which then triggers additional fees 0:08:39.920 --> 0:08:44.640 and expenses like agents, commissions, marketing expenses, legal and so on. 0:08:45.120 --> 0:08:48.040 And now your property you work so hard for in 0:08:48.080 --> 0:08:50.640 your self manister fund, you're out of the market. You've 0:08:50.640 --> 0:08:56.120 completely changed the investment strategy thanks to this tax. Now 0:08:56.679 --> 0:09:00.160 this problem continues on. It doesn't just stop there. It's 0:09:00.160 --> 0:09:04.280 actually potentially going to destroy the investment cycle. You see 0:09:04.400 --> 0:09:08.240 a lot of investors actually leverage growth to reinvest, you know, 0:09:08.320 --> 0:09:13.800 equity in property or shares, and taxing before it actually 0:09:13.800 --> 0:09:18.720 has been realized completely destroys this strategy. It completely pedalizes 0:09:19.440 --> 0:09:23.600 that strategic, long term thinking and planning when it comes 0:09:23.640 --> 0:09:29.160 to wealth accumulation, and it also encourages this knee jerk 0:09:29.400 --> 0:09:35.680 short term terminism and liquid assets doesn't actually uphold long 0:09:35.800 --> 0:09:42.360 term financial stability, security and independence, which is really concerning. 0:09:43.360 --> 0:09:45.240 The other thing we need to think about is this 0:09:45.400 --> 0:09:49.720 three million dollar figure is not indexed, and there doesn't 0:09:49.720 --> 0:09:55.200 seem to be much agreement around considering indexing it. Now. 0:09:55.679 --> 0:09:58.280 Three million dollars, yes, it is. It is a lot 0:09:58.320 --> 0:10:00.800 of money to happen superineuration. And you know, if you've 0:10:00.840 --> 0:10:03.560 got three million dollars in super you've worked hard, you've 0:10:03.559 --> 0:10:07.400 done well, You've made some great decisions. Now, if this 0:10:07.480 --> 0:10:10.520 stays in place and is not indexed over the next 0:10:10.559 --> 0:10:14.200 twenty thirty years, more and more of us will actually 0:10:14.200 --> 0:10:16.120 have three million dollars SUPER. And if you ever played 0:10:16.120 --> 0:10:19.240 around with my superannuation calculators on my website, you'll see 0:10:19.240 --> 0:10:23.720 that a three million dollars superannuation account balance isn't unfathomable. 0:10:24.040 --> 0:10:28.160 Hard work, dedication, commitment, you could have a three million 0:10:28.200 --> 0:10:31.840 dollars in SUPER and then new factor in things like inflation, 0:10:32.880 --> 0:10:38.040 compounding returns, regular contributions. You're SUPER guarantee, which is now 0:10:38.120 --> 0:10:40.560 up to approaching twelve percent. From the first of July. 0:10:41.400 --> 0:10:44.320 More and more people are going to hit this threshold, 0:10:44.520 --> 0:10:49.199 which includes younger investors, younger investors who have made brilliant 0:10:49.280 --> 0:10:52.920 smart investment decisions. You could hit that three million dollars fast, 0:10:52.920 --> 0:10:56.360 sooner than you realize. And then what about women, Women 0:10:56.400 --> 0:10:59.360 who have previously been impacted by Super working so hard 0:10:59.360 --> 0:11:03.520 to now build up they're Super consistently contributing investing, making 0:11:03.559 --> 0:11:06.400 great decisions, getting quality advice. They can also be caught 0:11:06.440 --> 0:11:09.000 up on this. Imagine that you work so hard to 0:11:09.200 --> 0:11:12.559 get your SUPER back on track and then you get penalized. 0:11:13.160 --> 0:11:19.040 This disproportionately impacts responsible investors like you and me, and 0:11:19.080 --> 0:11:23.680 it is so fucking messed up. Now, the AMP Deputy 0:11:23.800 --> 0:11:28.160 Chief Economist, Diana Mussina, she did some modeling and she 0:11:28.200 --> 0:11:30.520 actually showed that the average twenty two year old is 0:11:30.559 --> 0:11:33.640 actually going to be hit by this exact tax by 0:11:33.679 --> 0:11:35.840 the time they go to retire. So if you're thinking 0:11:36.440 --> 0:11:38.040 this is not going to be something your kids need 0:11:38.080 --> 0:11:43.319 to worry about, grandkids or even like you, you are 0:11:43.480 --> 0:11:45.760 so wrong. We've all got to wake up and put 0:11:45.840 --> 0:11:47.360 our hands up in the air and jump up and 0:11:47.400 --> 0:11:51.520 down so this doesn't actually get past. There's also the 0:11:51.640 --> 0:11:56.320 psychological damage here and being the impact on our confidence 0:11:56.400 --> 0:11:59.920 and our fucking trust in superannuation. And I'm sorry just 0:12:00.040 --> 0:12:03.160 where but this is just disgraceful. I feel like this 0:12:03.200 --> 0:12:07.640 is like daylight robbery that's happening right now. So superannuation 0:12:08.000 --> 0:12:11.440 was designed to be predictable, it was designed to be 0:12:11.600 --> 0:12:13.560 for the long term, and it was also designed to 0:12:13.600 --> 0:12:17.640 be fair. There's also the obvious this was designed to 0:12:17.679 --> 0:12:21.280 actually make people be financially independent, not rely on the government, 0:12:21.360 --> 0:12:25.840 so destroying people's superinnuation seems completely counterintuitive. But anyway, all right, 0:12:25.880 --> 0:12:30.120 I digress. So superinheration back when it was created in 0:12:30.160 --> 0:12:32.680 the early nineties was designed to empower people like you 0:12:32.720 --> 0:12:35.280 and I to create our own financial dependence and today 0:12:35.440 --> 0:12:38.440 control of our money because we can pick where that 0:12:38.480 --> 0:12:44.080 money is invested. This rule change mid game makes me 0:12:44.679 --> 0:12:49.520 and I think everyone else feel unsafe. It feels erratic, 0:12:49.600 --> 0:12:54.439 and it feels cruel. It's like a fucking punishment. Australians 0:12:54.559 --> 0:12:58.280 may react in a really negative way, and that is 0:12:58.320 --> 0:13:00.960 pull their money out of superannuation if they can, which 0:13:01.000 --> 0:13:05.040 could weaken the entire system. They could pull money out 0:13:05.040 --> 0:13:07.600 of property, money out of the share market, money out 0:13:07.600 --> 0:13:11.760 of the Australian economy, the economy, our economy, and that 0:13:11.800 --> 0:13:15.960 would then impact our productivity and growth. And to be honest, 0:13:16.400 --> 0:13:18.440 if you're one of these people that's thinking, yeah, that's 0:13:18.480 --> 0:13:20.960 what I was thinking of doing, Canna, I don't blame 0:13:21.040 --> 0:13:24.080 you for thinking like that. It's not what I'm obviously recommending, 0:13:24.160 --> 0:13:26.840 but you start to think, well, okay, what should I 0:13:26.880 --> 0:13:30.720 be doing elsewhere? Because I definitely don't want to remintain 0:13:30.800 --> 0:13:34.040 this commitment to my sexy superinnovation because it's certainly not 0:13:34.120 --> 0:13:37.080 looking as sexy anymore. If this does get past. So 0:13:37.440 --> 0:13:42.440 if people stop trusting the rules, they start looking for 0:13:42.520 --> 0:13:46.960 ways outside of the system. Money will go offshore, people 0:13:47.000 --> 0:13:51.240 will start utilizing family trusts and private lending. The damage 0:13:51.280 --> 0:13:54.760 done to our economy could be irrepairable or because of 0:13:54.800 --> 0:14:01.319 this one stupid change in rules is a little bit 0:14:01.440 --> 0:14:05.240 like a marriage between you and your retirement. If you 0:14:05.440 --> 0:14:08.680 keep changing the rules, you start to wonder whether it's 0:14:08.720 --> 0:14:12.840 worth actually staying in the relationship anymore. And as angry 0:14:12.880 --> 0:14:16.720 as I am, I don't want anyone's eyes wondering. Because 0:14:16.840 --> 0:14:19.600 under the current system as it is today, without this 0:14:19.680 --> 0:14:23.680 stupid rule in place, superannuation is still sexy. It helps 0:14:23.720 --> 0:14:27.400 create financial stability. It also takes away temptation to go 0:14:27.440 --> 0:14:29.160 and blow that money and spend that money when it's 0:14:29.200 --> 0:14:33.320 for our long term financial security, freedom and independence. So 0:14:33.760 --> 0:14:35.920 why would we want to go and mess with it? 0:14:36.480 --> 0:14:39.600 Especially when our system, our superannuation system that is is 0:14:39.640 --> 0:14:41.480 known as being one of the best in the world. 0:14:41.520 --> 0:14:44.280 It is really admired, respected and there are a lot 0:14:44.280 --> 0:14:46.840 of other countries really looking into what we do and 0:14:46.880 --> 0:14:49.800 seeing how they can incorporate it in their own country. 0:14:50.480 --> 0:14:53.320 So let's keep moving on this, because whilst I like 0:14:53.360 --> 0:14:54.920 to talk about the problem. I also like to talk 0:14:54.920 --> 0:15:00.680 about solutions, ideas and strategies. So what can we do? Obviously, 0:15:00.920 --> 0:15:03.680 Number one, we've got to stay informed. This policy is 0:15:03.720 --> 0:15:08.400 still a proposal, it's not actually more yet. You've got 0:15:08.440 --> 0:15:11.000 to go and talk to your financial planner and your 0:15:11.040 --> 0:15:15.840 accountant sooner rather than later, talking to them about super splitting. 0:15:16.080 --> 0:15:18.600 Is this something that you can do? You know, depending 0:15:18.640 --> 0:15:21.160 on how many members you've got and obviously how much money, 0:15:21.160 --> 0:15:26.160 and if your partner is in your superannuation. Looking at valuations, 0:15:26.200 --> 0:15:31.720 self managed superfunded valuations, looking at liquidity strategies, particularly, you know, 0:15:31.880 --> 0:15:34.520 looking at making sure that you've got cash and perhaps 0:15:34.600 --> 0:15:37.320 the strategy now changes so that you're not making new investments, 0:15:37.320 --> 0:15:40.480 you're perhaps piling up cash and letting it sit in 0:15:40.520 --> 0:15:44.480 the self mattered super fund. Also looking about tax planning, 0:15:45.000 --> 0:15:48.840 looking at potentially shares Australian shares with franking credits that 0:15:48.880 --> 0:15:52.400 can help reduce that tax. Or you know, if you 0:15:52.440 --> 0:15:55.760 are over preservation age, which promotivus is around about sixty 0:15:55.880 --> 0:15:58.680 or above, perhaps you need to look at taking some 0:15:58.760 --> 0:16:01.320 money at a superannuation. But of course don't go and 0:16:01.360 --> 0:16:05.840 do that without professional and formal advice from your accountant 0:16:05.920 --> 0:16:09.520 and your financial planner. You also may want to look 0:16:09.560 --> 0:16:11.840 at maybe looking at some more liquid assets. If your 0:16:11.880 --> 0:16:15.000 self managed super fund is predominantly filled up with property 0:16:15.240 --> 0:16:18.640 like commercial property or residential property that's not liquid, perhaps 0:16:18.720 --> 0:16:21.600 you need to start including other assets that you can 0:16:21.640 --> 0:16:24.040 actually sell one hundred thousand dollars worth or ten thousand 0:16:24.080 --> 0:16:26.720 dollars worth, or you know whatever you need to potentially 0:16:26.720 --> 0:16:28.600 fund these things that you're not ever backed into a 0:16:28.600 --> 0:16:31.360 situation where we have to sell the whole entire property. 0:16:31.880 --> 0:16:33.440 The other thing you want to be talking about, your 0:16:33.440 --> 0:16:36.920 financial planner, where is looking at assets for your investment 0:16:36.960 --> 0:16:40.640 strategy or retirement strategy that are perhaps less volatile, so 0:16:40.640 --> 0:16:43.080 that you don't need to worry about a spike in 0:16:43.200 --> 0:16:47.400 volatility where it pushes you over temporarily over that three 0:16:47.440 --> 0:16:51.360 million dollar threshold triggering this tax for you. Perhaps you 0:16:51.400 --> 0:16:56.640 need to look at more boring, stable, less volatile and investments. 0:16:56.680 --> 0:17:01.000 Perhaps this really is important to you. Know, it pays 0:17:01.040 --> 0:17:04.040 to be prepared, and you know this is not a 0:17:04.080 --> 0:17:06.960 time to panic, but it's certainly not a time to 0:17:07.000 --> 0:17:11.400 stay silent because this is grossly unfair to all of us. 0:17:12.119 --> 0:17:14.119 So you know, you pick up the phone, write a 0:17:14.200 --> 0:17:17.720 letter to your MP. Policies like this shouldn't ever be rushed, 0:17:17.720 --> 0:17:20.320 and I feel like this is being rushed through at 0:17:20.320 --> 0:17:25.240 a disturbing, concerning rate. So as I wrap up today's episode, 0:17:25.240 --> 0:17:27.480 and I think I have literally like spattal over my 0:17:27.520 --> 0:17:30.280 mirancrophone because I got in so passionate about this. You know, 0:17:30.359 --> 0:17:34.119 whether your superbalance is thirty thousand dollars or three million dollars, 0:17:34.320 --> 0:17:38.600 this proposed change should really concern you. This may look 0:17:38.640 --> 0:17:41.879 like a rich person's problem, but if it is past, 0:17:42.440 --> 0:17:46.320 it is going to eventually impact all of us. Furthermore, 0:17:46.640 --> 0:17:49.560 this isn't just about tax It's about changing the rules 0:17:49.560 --> 0:17:52.920 of the game, shifting the burden and punishing the very 0:17:52.960 --> 0:17:57.640 behaviors that we're actually trying to encourage, like long term planning, 0:17:58.000 --> 0:18:02.280 financial independence, growing your future wealth responsibly so that we 0:18:02.359 --> 0:18:05.720 don't end up on the government demanding an age pension 0:18:05.880 --> 0:18:08.879 every single year. So I'm sorry if I've gotten a 0:18:08.880 --> 0:18:10.959 little bit passionate. I'm sorry if I've offended you with 0:18:11.000 --> 0:18:14.320 my swearing. I promise you I wasn't trying to scare you, 0:18:14.480 --> 0:18:16.560 but I want to empower you. I want to help 0:18:16.600 --> 0:18:20.040 you understand what is happening and why your voice and 0:18:20.080 --> 0:18:24.560 your plan matters more than ever before. I don't want 0:18:24.600 --> 0:18:26.680 you to wake up one day go gosh, what's this tax? 0:18:26.720 --> 0:18:28.560 Why am I now being asked to pay this tax? 0:18:28.640 --> 0:18:31.200 What's this all about? And think why didn't Cano ever 0:18:31.240 --> 0:18:33.560 tell me about this? Well I am. I'm telling you 0:18:33.640 --> 0:18:36.040 right now so that we can do something and hopefully 0:18:36.040 --> 0:18:39.320 get it shut down for good. Now, if you are 0:18:39.600 --> 0:18:42.120 one of those very fortunate people who does have three 0:18:42.119 --> 0:18:45.720 million dollars or more in super can, I strongly recommend 0:18:45.840 --> 0:18:50.399 getting advice, not advice from influencer or from listening to 0:18:50.400 --> 0:18:53.160 a podcast like this or reading a blog post, go 0:18:53.200 --> 0:18:58.359 and get personal advice professional advice from your accountant and 0:18:58.400 --> 0:19:02.200 your financial planner as soon as possible. Whilst this may 0:19:02.400 --> 0:19:05.520 not necessarily be passed, it may be delayed for a 0:19:05.560 --> 0:19:07.560 little bit in past, say in six months time or 0:19:07.600 --> 0:19:11.720 a year's time, it is still worth getting proactive advice 0:19:12.320 --> 0:19:16.359 so that you can make any recommended changes smoothly while 0:19:16.359 --> 0:19:19.520 being completely informed and knowing what is best for you 0:19:19.960 --> 0:19:22.320 and your goals, and of course all the costs and 0:19:22.480 --> 0:19:27.000 risks involved. So all right, let's keep the pressure for 0:19:27.080 --> 0:19:31.280 as smart, successful superanneration policy as it should be, and 0:19:31.359 --> 0:19:35.240 as well, continue to invest with purpose, keep an iron 0:19:35.280 --> 0:19:39.160 our economy and what's right for everyone, and support productivity 0:19:39.359 --> 0:19:43.440 and innovation in this country. Now as always, as a 0:19:43.480 --> 0:19:47.919 wrap up today's episode, keep that financial fire burning right within. 0:19:48.520 --> 0:20:02.560 This is Sugar Mamma's fireplay.