Proposed New Taxes Could Reshape Australian Wealth

The Australian government and policy think tanks are floating a suite of new tax proposals. These include a “spare bedroom” tax, a tax on the family home, a wealth tax, the return of inheritance (death) tax, and tougher superannuation rules.

Promoted as solutions to inequality and the housing crisis, these measures—if implemented—would affect nearly every household and fundamentally alter how Australians build, protect, and pass on wealth.

For those turning to gold and silver bullion as a store of value and safe haven, the implications are significant.

Spare Bedroom Tax

The Grattan Institute has proposed a tax on underused rooms in Australian homes, arguing that the 13 million spare bedrooms nationwide could be ‘unlocked’ to ease the housing crisis by incentivising older Australians to downsize.

But the policy overlooks practical and personal realities. Spare rooms are often used for home offices, guests, or storage, not just left idle. The idea that older Australians are hoarding space is a simplistic and punitive view. It risks weakening intergenerational households and penalising stability.

Family Home Tax

Currently, the family home is exempt from Capital Gains Tax (CGT)—a benefit worth around $50 billion a year. The Australia Institute and ANU have called for taxing either the capital gain on sale or the imputed rent (the notional rental value of living in your own home).

Such a move would be seismic. The family home has long been seen as a sacred part of retirement planning—both a nest egg and a vehicle for passing wealth to the next generation. Taxing it could trap retirees in place and make housing less secure across the board.

Wealth Tax

One model proposes a 2% annual wealth tax on net assets above $5 million, which Treasury estimates could raise over $40 billion annually.

However, implementation would be complex. It would require annual valuations of property, farms, and businesses. For asset-rich but cash-poor Australians—like farmers or small business owners—it could force asset sales. Critics argue it would discourage saving, stifle investment, and drive capital offshore.

Inheritance (Death) Tax

A reintroduction of inheritance tax is again under discussion, with think tanks suggesting it as a tool to address intergenerational inequality. One proposal would tax estates over AU$2 million at 30%, raising up to AU$10 billion a year.

The problem? It makes no distinction between a AU$2 million Sydney home and a AU$2 million share portfolio. Many middle-class Australians could be swept up simply by virtue of having owned property for decades. Farmers and small business owners could be forced to liquidate assets—echoing the devastation caused by inheritance taxes overseas.

Superannuation Tax on Balances Above AU$3M

Currently progressing through Parliament is a plan to double the tax rate on super balances over AU$3 million—from 15% to 30%—including unrealised gains. That means Australians could owe tax on paper profits they haven’t actually realised.

This move undermines confidence in super as a long-term wealth vehicle. Farmers and small business owners using self-managed super funds (SMSFs) could be hit with tax bills they can’t pay without selling core assets. Opposition Leader Peter Dutton has called it a “quasi-inheritance tax”—and with good reason.

What This Means for Everyday Australians

• The family home is under threat – Long considered sacrosanct, it may no longer be exempt from tax.
• Superannuation trust is eroding – Retirement planning assumptions are being overturned.
• Intergenerational transfer is at risk – Families could be forced to sell assets to pay wealth or inheritance taxes.
• Bullion’s appeal strengthens – Gold and silver don’t require annual valuations, don’t trigger taxes on unrealised gains.

How Australians Can Respond

• Stay politically engaged – These ideas are not yet law. Public submissions and political pressure matter.
• Diversify beyond the system – Property may no longer be safe. Bullion remains private, liquid, and outside the wealth tax net.
• Reassess estate planning – Trusts, gifts, and bullion allocations may better preserve family wealth.
• Challenge the narrative – Just because a tax is proposed doesn’t mean it must be accepted. Australians have defeated inheritance tax before.

Australians should be aware of the policy trend towards increased scrutiny of personal wealth and a shift in long-standing protections. In this context, gold and silver remain a reliable store of value—independent, discreet, and resilient in the face of regulatory change.