From atlaswealth.com: The Labor Government has proposed a new superannuation tax, Division 296, which targets Australians with superannuation balances exceeding $3 million, taxing not only realised gains but also unrealised gains.

This tax structure calculates tax based on the increase in superannuation balance over the financial year, presenting potential cash flow challenges and the prospect of double taxation.

Concerns regarding the impact on investment behaviour, legislative risk, and complexity have raised significant debate about the long-term implications of this tax policy.