30% CGT minimum
The intent of the 30% minimum is outlined in this budget document much more clearly than the Prime Minister or Treasurer have explained:
>A minimum tax rate of 30 per cent will apply to real capital gains accruing from 1 July 2027 (with no impact until the income is realised). This will not affect people whose capital gains are already taxed at rates of at least 30 per cent.
The introduction of the minimum tax reduces the benefit of taxpayers deferring capital gains realisation to years where their marginal tax rates are low. It ensures their gains are subject to a tax rate closer to the rate they faced during their working life and is commensurate with the tax rate paid by most workers.
Recipients of means-tested income support payments, such as the Age Pension or JobSeeker, will be exempted from the minimum tax if they receive any payment in the financial year in which they realise the capital gain.
As you can see in the chart, 30% is much higher than the median effective tax rate. It is even higher than the effective tax rate of the top 10% of earners.
Why would someone who has retired early and is not relying on government welfare pay the highest effective tax rate?
Why should they pay a higher tax rate than super?