Government Backs Down, Drops Plan to Tax Unrealised Super Gains

Treasurer Jim Chalmers at a press conference at Parliament House in Canberra, Australia on July 30, 2025. AAP Image/Mick Tsikas

The Albanese government has watered down one of its most contentious revenue measures, notably removing a planned tax on unrealised capital gains.

Two years after it was first unveiled, the reworked plan—approved by cabinet on Oct. 13— softens key elements of the original policy by introducing indexed thresholds, removing the tax on unrealised capital gains, and delaying implementation by a year.