BHP and Rio's hopes for carbon millions dashed by sceptical officials
BHP and Rio Tinto's proposals to earn a windfall from environmental projects has been rejected by federal officials who have knocked back the commodity giants' hopes of earning valuable credits by storing carbon in mine waste and producing carbon-neutral diesel from trees.
The country's two biggest mining companies have been urging the government to use Australian Carbon Credit Units to encourage a wider range of projects as part of Labor's push to give industry a bigger say in what should be eligible under the lucrative emissions permits scheme.
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Perth Now
44 minutes ago
- Perth Now
Albo tight-lipped on crucial Trump meeting
Anthony Albanese says he will not 'pre-empt' an outcome of his highly anticipated meeting with US President Donald Trump, saying it would be successful if he can 'put forward our position'. While the two world leaders are set to meet on Wednesday morning (AEST), the Prime Minister would not directly say whether he expects to secure an exemption on tariffs or walk away with a guarantee for AUKUS' continued survival. Mr Albanese said the face-to-face would be about the two countries' relations, dudding questions about whether he would implore Mr Trump to call on Israeli Prime Minister Benjamin Netanyahu to allow aid into Gaza. The Labor leader also would not say whether he would discuss comments made by US Defence Secretary Pete Hegseth, who declared China was at risk of invading Taiwan in the next three years. Asked whether he thought the question of 'China (would) come up' during the bilateral, Mr Albanese responded: 'I'm not pre-empting discussions that take place'. However speaking to reporters after his bilateral with Canadian Prime Minister Mark Carney, he said Australia's position on tariffs was 'very clear'. He said the tariffs on Australian goods would not affect its 'competitive advantage' and would only increase the cost of US goods. 'We see tariffs as acts of economic self-harm by the country imposing the tariffs, because what it does is lead to increased costs for the country that is making those decisions,' he said. 'I would hope that over a period of time, the United States revisits that position and will continue to advocate that.' Speaking directly to the 25 per cent levy on aluminium and the 50 per cent tariffs on steel, Mr Albanese noted steel production facilities in the US had not increased since January 20, with the US still needing to export steel. 'They're just paying more for them,' he said. Mr Albanese also reiterated previous comments that AUKUS was still in the 'interests of all three countries,' referring to Australia, the US and the UK. 'What AUKUS offers the United States is, firstly, the support that we're providing for their industrial capacity,' he said. 'Secondly, the increased capacity to have their subs in the water as well, because of the maintenance facilities that will take place at Henderson,' he said. 'Indeed, having Australia, the United Kingdom and the United States all having an increased nuclear-powered submarines, in our case, conventionally armed, is something that will make the Indo-Pacific area more secure that is in the interests of the United States.'
The Advertiser
2 hours ago
- The Advertiser
PM arrives in Canada ahead of Trump tariff sit down
The prime minister will soon begin running a diplomatic gauntlet that will end with a much-anticipated meeting with Donald Trump, after landing in Canada. Anthony Albanese was greeted by local officials and First Nations representatives when he touched down in the Alberta city of Calgary ahead of meetings with world leaders on the sidelines of the G7 summit in Kananaskis. Mr Albanese will first meet with Canadian Prime Minister Mark Carney on Sunday local time (Monday AEST) before a talk with newly-elected South Korean President Lee Jae-myung on Monday, then more discussions the following day with UK Prime Minister Keir Starmer, French President Emmanuel Macron, Japanese Prime Minister Shigeru Ishiba, and German Chancellor Friedrich Merz. But his final chat face to face with the US president on Tuesday looms as the most important of all. Every leader has had to reckon with the impact of the US president's threatened tariffs on their economies. But Mr Carney, in particular, could provide insight to Mr Albanese. Despite vowing to fight back against the tariffs, the Canadian prime minister's meetings with Mr Trump have been relatively well received by both parties and raised hopes for a fresh trade deal between the two North American nations. Mr Albanese's meeting with the Republican president is scheduled for Tuesday on the margins of the summit. The prime minister has taken a less adversarial stance to Mr Trump's approach than his Canadian peer, preferring to highlight Australia's long history with its alliance and trading partner. "The combination of Australia and the United States when we're working together is an unbeatable combination," he told business leaders in Seattle on Saturday. Australian goods exports sent to the US market 10 per cent tariffs and - like all trading partners except the UK - there will be 50 per cent tariffs on aluminium and steel products. Tariffs are generally passed on by importers to the citizens of the country imposing the tariffs, but can have the effect of reducing demand for the exporting country's products. The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it "engages constructively" with American officials. Australians' sense of safety and economic optimism has already plunged amid the talk of tariffs, as well as growing conflicts and global disorder, according to an annual Lowy Institute Poll. Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally. "Australians are clearly unsettled by what they've seen of the second Trump administration," Lowy Institute executive director Michael Fullilove said. Australia is not a member of the Group of Seven leading industrialised nations but was invited to the event by Mr Carney. Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration last month, but Sunday's event will be their first formal bilateral discussion. They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East. The prime minister will soon begin running a diplomatic gauntlet that will end with a much-anticipated meeting with Donald Trump, after landing in Canada. Anthony Albanese was greeted by local officials and First Nations representatives when he touched down in the Alberta city of Calgary ahead of meetings with world leaders on the sidelines of the G7 summit in Kananaskis. Mr Albanese will first meet with Canadian Prime Minister Mark Carney on Sunday local time (Monday AEST) before a talk with newly-elected South Korean President Lee Jae-myung on Monday, then more discussions the following day with UK Prime Minister Keir Starmer, French President Emmanuel Macron, Japanese Prime Minister Shigeru Ishiba, and German Chancellor Friedrich Merz. But his final chat face to face with the US president on Tuesday looms as the most important of all. Every leader has had to reckon with the impact of the US president's threatened tariffs on their economies. But Mr Carney, in particular, could provide insight to Mr Albanese. Despite vowing to fight back against the tariffs, the Canadian prime minister's meetings with Mr Trump have been relatively well received by both parties and raised hopes for a fresh trade deal between the two North American nations. Mr Albanese's meeting with the Republican president is scheduled for Tuesday on the margins of the summit. The prime minister has taken a less adversarial stance to Mr Trump's approach than his Canadian peer, preferring to highlight Australia's long history with its alliance and trading partner. "The combination of Australia and the United States when we're working together is an unbeatable combination," he told business leaders in Seattle on Saturday. Australian goods exports sent to the US market 10 per cent tariffs and - like all trading partners except the UK - there will be 50 per cent tariffs on aluminium and steel products. Tariffs are generally passed on by importers to the citizens of the country imposing the tariffs, but can have the effect of reducing demand for the exporting country's products. The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it "engages constructively" with American officials. Australians' sense of safety and economic optimism has already plunged amid the talk of tariffs, as well as growing conflicts and global disorder, according to an annual Lowy Institute Poll. Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally. "Australians are clearly unsettled by what they've seen of the second Trump administration," Lowy Institute executive director Michael Fullilove said. Australia is not a member of the Group of Seven leading industrialised nations but was invited to the event by Mr Carney. Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration last month, but Sunday's event will be their first formal bilateral discussion. They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East. The prime minister will soon begin running a diplomatic gauntlet that will end with a much-anticipated meeting with Donald Trump, after landing in Canada. Anthony Albanese was greeted by local officials and First Nations representatives when he touched down in the Alberta city of Calgary ahead of meetings with world leaders on the sidelines of the G7 summit in Kananaskis. Mr Albanese will first meet with Canadian Prime Minister Mark Carney on Sunday local time (Monday AEST) before a talk with newly-elected South Korean President Lee Jae-myung on Monday, then more discussions the following day with UK Prime Minister Keir Starmer, French President Emmanuel Macron, Japanese Prime Minister Shigeru Ishiba, and German Chancellor Friedrich Merz. But his final chat face to face with the US president on Tuesday looms as the most important of all. Every leader has had to reckon with the impact of the US president's threatened tariffs on their economies. But Mr Carney, in particular, could provide insight to Mr Albanese. Despite vowing to fight back against the tariffs, the Canadian prime minister's meetings with Mr Trump have been relatively well received by both parties and raised hopes for a fresh trade deal between the two North American nations. Mr Albanese's meeting with the Republican president is scheduled for Tuesday on the margins of the summit. The prime minister has taken a less adversarial stance to Mr Trump's approach than his Canadian peer, preferring to highlight Australia's long history with its alliance and trading partner. "The combination of Australia and the United States when we're working together is an unbeatable combination," he told business leaders in Seattle on Saturday. Australian goods exports sent to the US market 10 per cent tariffs and - like all trading partners except the UK - there will be 50 per cent tariffs on aluminium and steel products. Tariffs are generally passed on by importers to the citizens of the country imposing the tariffs, but can have the effect of reducing demand for the exporting country's products. The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it "engages constructively" with American officials. Australians' sense of safety and economic optimism has already plunged amid the talk of tariffs, as well as growing conflicts and global disorder, according to an annual Lowy Institute Poll. Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally. "Australians are clearly unsettled by what they've seen of the second Trump administration," Lowy Institute executive director Michael Fullilove said. Australia is not a member of the Group of Seven leading industrialised nations but was invited to the event by Mr Carney. Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration last month, but Sunday's event will be their first formal bilateral discussion. They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East. The prime minister will soon begin running a diplomatic gauntlet that will end with a much-anticipated meeting with Donald Trump, after landing in Canada. Anthony Albanese was greeted by local officials and First Nations representatives when he touched down in the Alberta city of Calgary ahead of meetings with world leaders on the sidelines of the G7 summit in Kananaskis. Mr Albanese will first meet with Canadian Prime Minister Mark Carney on Sunday local time (Monday AEST) before a talk with newly-elected South Korean President Lee Jae-myung on Monday, then more discussions the following day with UK Prime Minister Keir Starmer, French President Emmanuel Macron, Japanese Prime Minister Shigeru Ishiba, and German Chancellor Friedrich Merz. But his final chat face to face with the US president on Tuesday looms as the most important of all. Every leader has had to reckon with the impact of the US president's threatened tariffs on their economies. But Mr Carney, in particular, could provide insight to Mr Albanese. Despite vowing to fight back against the tariffs, the Canadian prime minister's meetings with Mr Trump have been relatively well received by both parties and raised hopes for a fresh trade deal between the two North American nations. Mr Albanese's meeting with the Republican president is scheduled for Tuesday on the margins of the summit. The prime minister has taken a less adversarial stance to Mr Trump's approach than his Canadian peer, preferring to highlight Australia's long history with its alliance and trading partner. "The combination of Australia and the United States when we're working together is an unbeatable combination," he told business leaders in Seattle on Saturday. Australian goods exports sent to the US market 10 per cent tariffs and - like all trading partners except the UK - there will be 50 per cent tariffs on aluminium and steel products. Tariffs are generally passed on by importers to the citizens of the country imposing the tariffs, but can have the effect of reducing demand for the exporting country's products. The Labor government is considering using US beef imports and critical minerals as potential bargaining chips as it "engages constructively" with American officials. Australians' sense of safety and economic optimism has already plunged amid the talk of tariffs, as well as growing conflicts and global disorder, according to an annual Lowy Institute Poll. Their trust in the US has fallen to the lowest level in the history of the decades-long poll, with two-in-three respondents holding little to no trust in the traditional Australian ally. "Australians are clearly unsettled by what they've seen of the second Trump administration," Lowy Institute executive director Michael Fullilove said. Australia is not a member of the Group of Seven leading industrialised nations but was invited to the event by Mr Carney. Mr Albanese previously met the Canadian prime minister on the margins of the Papal inauguration last month, but Sunday's event will be their first formal bilateral discussion. They are also expected to discuss defence, critical minerals, climate change and the escalating situation in the Middle East.
The Advertiser
2 hours ago
- The Advertiser
Most asked questions about unrealised capital gains tax
Labor's attempt to tax unrealised capital gains in super has resulted in an avalanche of emails. Today we'll look at some of the most asked questions. Question: Regarding the proposed extra tax on earnings for super balances over $3 million - I agree taxing unrealised capital gains is a major concern and a complete shift from established principles. I thought any tax paid on unrealised gains would at least offset CGT when the asset is sold. But your article says otherwise: "When you do eventually sell those assets and realise a profit, you will pay capital gains tax. And no, there is no credit for the tax you have already paid on the unrealised gains ..." Is that really correct? Surely there must be either a credit for tax already paid, or at least a cost base adjustment for the amount taxed. Answer: You need to keep in mind that the tax on unrealised capital gains is calculated by taking the difference between the opening and closing values - adjusted for withdrawals and contributions for the financial year ending 30 June 2026. This is simply a method of calculation. It does not alter your cost base for capital gains tax purposes. In other words, when assets in your fund are eventually sold, normal CGT rules will still apply. Taxation of specific assets within your fund is an entirely separate issue from the government's decision to levy a tax on the difference in valuations. Question: I understand the Transfer Balance Cap (TBC) is $1.9 million for 2024-25, increasing to $2 million from 1 July 2025. Amounts transferred above this cap are taxed at 15 per cent. Given this, individuals with $3 million in the accumulation phase already face a 15 per cent tax on earnings. If the government's proposed legislation passes, will it impose an additional 15 per cent tax on earnings above $3 million, effectively bringing the tax rate to 30 per cent? Or will the new tax apply only to the portion of the super balance exceeding $3 million that remains in accumulation? Additionally, how does this proposed tax interact with the existing lifetime TBC? Answer. The transfer balance cap is simply a mechanism to limit how much can be transferred into pension phase within superannuation. It's unaffected by the proposed changes. An example may help: suppose you have $3.6 million in super - $2 million in pension phase and $1.6 million in accumulation - at 30 June 2026. If your total balance then rises to $4 million, the increase is $400,000. However, only $1 million is above the $3 million threshold, so just 25 per cent of the gain is taxable. That means the proposed tax of 15 per cent would apply on $100,000, resulting in a $15,000 tax bill. Question: I'm concerned about the proposal to tax unrealised capital gains in my super. If the fund holds franked shares, my understanding is that franking credits are refunded because tax has already been paid at the company level. If so, how can a franking refund be included in the year-end balance as a "contribution"? Shouldn't it be excluded from the new tax calculation? Answer: That's not quite how franking works. When a fund receives a franked dividend, the statement shows the cash dividend and the franking credit. The credit isn't a contribution - it's a tax offset that forms part of taxable income. It's used to reduce tax payable, and any excess is refunded. These amounts either boost the fund's bank balance or reduce its tax, improving its net position. It's not double taxation-it's what prevents it. Question: Is it possible for a self managed super fund in pension mode to meet the minimum annual drawdown for one partner, while keeping the remaining balance in accumulation, and later rolling it over into pension mode to take advantage of the upcoming $2 million transfer balance cap? The SMSF currently holds $1.9 million per member, with additional funds in accumulation. Answer: You can keep funds in accumulation mode indefinitely, but to move them into pension mode, you must comply with the transfer balance cap (TBC). If you have already used your full TBC , which is highly possible given that your SMSF pension balances are now $1.9 million each, you cannot transfer additional funds into pension mode. However, if you have any unused portion of your TBC, you can roll more funds into pension mode. Your current TBC can be found at myGov. Question: I have seen your advice to value household effects at garage sale prices for the purpose of assessing the value of assets when applying for an age pension. Does that apply to antiques? How should we go about valuing antiques that have been in the family for many years? Answer: Regan Welburn of My Pension Manager advises that antiques should be valued by the customer at their current market value. Since this can be subjective, one approach is to consider how much you would be willing to sell the item for today or how much you would insure it for. If there is uncertainty, a professional valuation may be worthwhile. This not only helps establish a fair market value for pension purposes but also provides an accurate figure for insurance coverage Question: I recently read your article RE: Clearance Certificates. In the article you state "the process is free". I logged into the ATO yesterday and it says the cost is $99.00 Inc GST for each certificate. My wife and I both need one, so this makes the cost $198.00 Inc GST. Can you shed any light on this? Answer: Applying for a certificate from the ATO is free. However, if you type "foreign resident capital gains withholding" into a search engine, some of the top results are commercial operators who will "assist" you with your application for a fee. For example my search engine presents the following as the top search result: The relevant ATO weblink for the form is: That's the one that should be used if the taxpayers don't wish to pay. Labor's attempt to tax unrealised capital gains in super has resulted in an avalanche of emails. Today we'll look at some of the most asked questions. Question: Regarding the proposed extra tax on earnings for super balances over $3 million - I agree taxing unrealised capital gains is a major concern and a complete shift from established principles. I thought any tax paid on unrealised gains would at least offset CGT when the asset is sold. But your article says otherwise: "When you do eventually sell those assets and realise a profit, you will pay capital gains tax. And no, there is no credit for the tax you have already paid on the unrealised gains ..." Is that really correct? Surely there must be either a credit for tax already paid, or at least a cost base adjustment for the amount taxed. Answer: You need to keep in mind that the tax on unrealised capital gains is calculated by taking the difference between the opening and closing values - adjusted for withdrawals and contributions for the financial year ending 30 June 2026. This is simply a method of calculation. It does not alter your cost base for capital gains tax purposes. In other words, when assets in your fund are eventually sold, normal CGT rules will still apply. Taxation of specific assets within your fund is an entirely separate issue from the government's decision to levy a tax on the difference in valuations. Question: I understand the Transfer Balance Cap (TBC) is $1.9 million for 2024-25, increasing to $2 million from 1 July 2025. Amounts transferred above this cap are taxed at 15 per cent. Given this, individuals with $3 million in the accumulation phase already face a 15 per cent tax on earnings. If the government's proposed legislation passes, will it impose an additional 15 per cent tax on earnings above $3 million, effectively bringing the tax rate to 30 per cent? Or will the new tax apply only to the portion of the super balance exceeding $3 million that remains in accumulation? Additionally, how does this proposed tax interact with the existing lifetime TBC? Answer. The transfer balance cap is simply a mechanism to limit how much can be transferred into pension phase within superannuation. It's unaffected by the proposed changes. An example may help: suppose you have $3.6 million in super - $2 million in pension phase and $1.6 million in accumulation - at 30 June 2026. If your total balance then rises to $4 million, the increase is $400,000. However, only $1 million is above the $3 million threshold, so just 25 per cent of the gain is taxable. That means the proposed tax of 15 per cent would apply on $100,000, resulting in a $15,000 tax bill. Question: I'm concerned about the proposal to tax unrealised capital gains in my super. If the fund holds franked shares, my understanding is that franking credits are refunded because tax has already been paid at the company level. If so, how can a franking refund be included in the year-end balance as a "contribution"? Shouldn't it be excluded from the new tax calculation? Answer: That's not quite how franking works. When a fund receives a franked dividend, the statement shows the cash dividend and the franking credit. The credit isn't a contribution - it's a tax offset that forms part of taxable income. It's used to reduce tax payable, and any excess is refunded. These amounts either boost the fund's bank balance or reduce its tax, improving its net position. It's not double taxation-it's what prevents it. Question: Is it possible for a self managed super fund in pension mode to meet the minimum annual drawdown for one partner, while keeping the remaining balance in accumulation, and later rolling it over into pension mode to take advantage of the upcoming $2 million transfer balance cap? The SMSF currently holds $1.9 million per member, with additional funds in accumulation. Answer: You can keep funds in accumulation mode indefinitely, but to move them into pension mode, you must comply with the transfer balance cap (TBC). If you have already used your full TBC , which is highly possible given that your SMSF pension balances are now $1.9 million each, you cannot transfer additional funds into pension mode. However, if you have any unused portion of your TBC, you can roll more funds into pension mode. Your current TBC can be found at myGov. Question: I have seen your advice to value household effects at garage sale prices for the purpose of assessing the value of assets when applying for an age pension. Does that apply to antiques? How should we go about valuing antiques that have been in the family for many years? Answer: Regan Welburn of My Pension Manager advises that antiques should be valued by the customer at their current market value. Since this can be subjective, one approach is to consider how much you would be willing to sell the item for today or how much you would insure it for. If there is uncertainty, a professional valuation may be worthwhile. This not only helps establish a fair market value for pension purposes but also provides an accurate figure for insurance coverage Question: I recently read your article RE: Clearance Certificates. In the article you state "the process is free". I logged into the ATO yesterday and it says the cost is $99.00 Inc GST for each certificate. My wife and I both need one, so this makes the cost $198.00 Inc GST. Can you shed any light on this? Answer: Applying for a certificate from the ATO is free. However, if you type "foreign resident capital gains withholding" into a search engine, some of the top results are commercial operators who will "assist" you with your application for a fee. For example my search engine presents the following as the top search result: The relevant ATO weblink for the form is: That's the one that should be used if the taxpayers don't wish to pay. Labor's attempt to tax unrealised capital gains in super has resulted in an avalanche of emails. Today we'll look at some of the most asked questions. Question: Regarding the proposed extra tax on earnings for super balances over $3 million - I agree taxing unrealised capital gains is a major concern and a complete shift from established principles. I thought any tax paid on unrealised gains would at least offset CGT when the asset is sold. But your article says otherwise: "When you do eventually sell those assets and realise a profit, you will pay capital gains tax. And no, there is no credit for the tax you have already paid on the unrealised gains ..." Is that really correct? Surely there must be either a credit for tax already paid, or at least a cost base adjustment for the amount taxed. Answer: You need to keep in mind that the tax on unrealised capital gains is calculated by taking the difference between the opening and closing values - adjusted for withdrawals and contributions for the financial year ending 30 June 2026. This is simply a method of calculation. It does not alter your cost base for capital gains tax purposes. In other words, when assets in your fund are eventually sold, normal CGT rules will still apply. Taxation of specific assets within your fund is an entirely separate issue from the government's decision to levy a tax on the difference in valuations. Question: I understand the Transfer Balance Cap (TBC) is $1.9 million for 2024-25, increasing to $2 million from 1 July 2025. Amounts transferred above this cap are taxed at 15 per cent. Given this, individuals with $3 million in the accumulation phase already face a 15 per cent tax on earnings. If the government's proposed legislation passes, will it impose an additional 15 per cent tax on earnings above $3 million, effectively bringing the tax rate to 30 per cent? Or will the new tax apply only to the portion of the super balance exceeding $3 million that remains in accumulation? Additionally, how does this proposed tax interact with the existing lifetime TBC? Answer. The transfer balance cap is simply a mechanism to limit how much can be transferred into pension phase within superannuation. It's unaffected by the proposed changes. An example may help: suppose you have $3.6 million in super - $2 million in pension phase and $1.6 million in accumulation - at 30 June 2026. If your total balance then rises to $4 million, the increase is $400,000. However, only $1 million is above the $3 million threshold, so just 25 per cent of the gain is taxable. That means the proposed tax of 15 per cent would apply on $100,000, resulting in a $15,000 tax bill. Question: I'm concerned about the proposal to tax unrealised capital gains in my super. If the fund holds franked shares, my understanding is that franking credits are refunded because tax has already been paid at the company level. If so, how can a franking refund be included in the year-end balance as a "contribution"? Shouldn't it be excluded from the new tax calculation? Answer: That's not quite how franking works. When a fund receives a franked dividend, the statement shows the cash dividend and the franking credit. The credit isn't a contribution - it's a tax offset that forms part of taxable income. It's used to reduce tax payable, and any excess is refunded. These amounts either boost the fund's bank balance or reduce its tax, improving its net position. It's not double taxation-it's what prevents it. Question: Is it possible for a self managed super fund in pension mode to meet the minimum annual drawdown for one partner, while keeping the remaining balance in accumulation, and later rolling it over into pension mode to take advantage of the upcoming $2 million transfer balance cap? The SMSF currently holds $1.9 million per member, with additional funds in accumulation. Answer: You can keep funds in accumulation mode indefinitely, but to move them into pension mode, you must comply with the transfer balance cap (TBC). If you have already used your full TBC , which is highly possible given that your SMSF pension balances are now $1.9 million each, you cannot transfer additional funds into pension mode. However, if you have any unused portion of your TBC, you can roll more funds into pension mode. Your current TBC can be found at myGov. Question: I have seen your advice to value household effects at garage sale prices for the purpose of assessing the value of assets when applying for an age pension. Does that apply to antiques? How should we go about valuing antiques that have been in the family for many years? Answer: Regan Welburn of My Pension Manager advises that antiques should be valued by the customer at their current market value. Since this can be subjective, one approach is to consider how much you would be willing to sell the item for today or how much you would insure it for. If there is uncertainty, a professional valuation may be worthwhile. This not only helps establish a fair market value for pension purposes but also provides an accurate figure for insurance coverage Question: I recently read your article RE: Clearance Certificates. In the article you state "the process is free". I logged into the ATO yesterday and it says the cost is $99.00 Inc GST for each certificate. My wife and I both need one, so this makes the cost $198.00 Inc GST. Can you shed any light on this? Answer: Applying for a certificate from the ATO is free. However, if you type "foreign resident capital gains withholding" into a search engine, some of the top results are commercial operators who will "assist" you with your application for a fee. For example my search engine presents the following as the top search result: The relevant ATO weblink for the form is: That's the one that should be used if the taxpayers don't wish to pay. Labor's attempt to tax unrealised capital gains in super has resulted in an avalanche of emails. Today we'll look at some of the most asked questions. Question: Regarding the proposed extra tax on earnings for super balances over $3 million - I agree taxing unrealised capital gains is a major concern and a complete shift from established principles. I thought any tax paid on unrealised gains would at least offset CGT when the asset is sold. But your article says otherwise: "When you do eventually sell those assets and realise a profit, you will pay capital gains tax. And no, there is no credit for the tax you have already paid on the unrealised gains ..." Is that really correct? Surely there must be either a credit for tax already paid, or at least a cost base adjustment for the amount taxed. Answer: You need to keep in mind that the tax on unrealised capital gains is calculated by taking the difference between the opening and closing values - adjusted for withdrawals and contributions for the financial year ending 30 June 2026. This is simply a method of calculation. It does not alter your cost base for capital gains tax purposes. In other words, when assets in your fund are eventually sold, normal CGT rules will still apply. Taxation of specific assets within your fund is an entirely separate issue from the government's decision to levy a tax on the difference in valuations. Question: I understand the Transfer Balance Cap (TBC) is $1.9 million for 2024-25, increasing to $2 million from 1 July 2025. Amounts transferred above this cap are taxed at 15 per cent. Given this, individuals with $3 million in the accumulation phase already face a 15 per cent tax on earnings. If the government's proposed legislation passes, will it impose an additional 15 per cent tax on earnings above $3 million, effectively bringing the tax rate to 30 per cent? Or will the new tax apply only to the portion of the super balance exceeding $3 million that remains in accumulation? Additionally, how does this proposed tax interact with the existing lifetime TBC? Answer. The transfer balance cap is simply a mechanism to limit how much can be transferred into pension phase within superannuation. It's unaffected by the proposed changes. An example may help: suppose you have $3.6 million in super - $2 million in pension phase and $1.6 million in accumulation - at 30 June 2026. If your total balance then rises to $4 million, the increase is $400,000. However, only $1 million is above the $3 million threshold, so just 25 per cent of the gain is taxable. That means the proposed tax of 15 per cent would apply on $100,000, resulting in a $15,000 tax bill. Question: I'm concerned about the proposal to tax unrealised capital gains in my super. If the fund holds franked shares, my understanding is that franking credits are refunded because tax has already been paid at the company level. If so, how can a franking refund be included in the year-end balance as a "contribution"? Shouldn't it be excluded from the new tax calculation? Answer: That's not quite how franking works. When a fund receives a franked dividend, the statement shows the cash dividend and the franking credit. The credit isn't a contribution - it's a tax offset that forms part of taxable income. It's used to reduce tax payable, and any excess is refunded. These amounts either boost the fund's bank balance or reduce its tax, improving its net position. It's not double taxation-it's what prevents it. Question: Is it possible for a self managed super fund in pension mode to meet the minimum annual drawdown for one partner, while keeping the remaining balance in accumulation, and later rolling it over into pension mode to take advantage of the upcoming $2 million transfer balance cap? The SMSF currently holds $1.9 million per member, with additional funds in accumulation. Answer: You can keep funds in accumulation mode indefinitely, but to move them into pension mode, you must comply with the transfer balance cap (TBC). If you have already used your full TBC , which is highly possible given that your SMSF pension balances are now $1.9 million each, you cannot transfer additional funds into pension mode. However, if you have any unused portion of your TBC, you can roll more funds into pension mode. Your current TBC can be found at myGov. Question: I have seen your advice to value household effects at garage sale prices for the purpose of assessing the value of assets when applying for an age pension. Does that apply to antiques? How should we go about valuing antiques that have been in the family for many years? Answer: Regan Welburn of My Pension Manager advises that antiques should be valued by the customer at their current market value. Since this can be subjective, one approach is to consider how much you would be willing to sell the item for today or how much you would insure it for. If there is uncertainty, a professional valuation may be worthwhile. This not only helps establish a fair market value for pension purposes but also provides an accurate figure for insurance coverage Question: I recently read your article RE: Clearance Certificates. In the article you state "the process is free". I logged into the ATO yesterday and it says the cost is $99.00 Inc GST for each certificate. My wife and I both need one, so this makes the cost $198.00 Inc GST. Can you shed any light on this? Answer: Applying for a certificate from the ATO is free. However, if you type "foreign resident capital gains withholding" into a search engine, some of the top results are commercial operators who will "assist" you with your application for a fee. For example my search engine presents the following as the top search result: The relevant ATO weblink for the form is: That's the one that should be used if the taxpayers don't wish to pay.
