Australia's superannuation tax reforms spark investor and saver concerns

Australia's federal budget has introduced tax reforms that would apply the highest marginal rates to investment income and potentially remove the 50 % capital‑gains‑tax discount, prompting criticism that the changes could drive capital flight and devalue assets.

Financial advisers note that superannuation remains a low‑tax avenue for Australians seeking passive income. To generate an $11,000 monthly dividend stream, a portfolio would need to be between $2.2 million and $4.4 million, depending on the dividend yield, with many recommending high‑yield ASX shares, REITs and listed investment companies.

A recent survey of 1,000 workers found that nearly half have not made extra super contributions before the end of the financial year, despite tax advantages such as a government co‑contribution of up to $500 for eligible earners. Experts stress that a $1,000 topping‑up can grow to roughly $40,000 by retirement, and that carry‑forward contribution rules can further boost benefits.