The proposal would introduce an annual tax levied on the net wealth of Australian residents,
regardless of where their assets are held, and the net wealth of non-residents who hold Australian
assets from 1 July 2022.

• Australian adult residents’ net wealth would be equal to the value of all assets minus al liabilities.
• Non-residents’ net wealth would be equal to the value of their Australian assets minus

Australian liabilities.

The following features of the tax would apply to both residents and non-residents.

• The tax would be levied at 6 per cent of each individual’s net wealth amount above $1 billion.
• The assessable net wealth would be calculated as at 30 June of each financial year.
• The net wealth of adults would include any taxable assets held by their children.
• Assets, both financial and non-financial, over the value of $50,000 would be included in taxable wealth.
• Initial net wealth valuations would be determined as at the date of policy announcement.
  • For non-residents, up to 10 per cent of the initial wealth value would be exempt from the taxable wealth calculation each year if the wealth is moved offshore. This means that in the first year, the remaining 90 per cent of the initial value would be taxable, even if more than 10 per cent is moved offshore. In the second year another 10 per cent of the initial wealth value would be exempt from tax if it is moved offshore and 80 per cent of the initial wealth value would be taxable. This pattern would continue each year so long as funds continue to be moved offshore.
  • Resident taxpayers would remain subject to tax on their global net wealth.
• Each year the amount of tax that arises from a single real estate holding could be deferred – and secured against the title of the property – up to an amount equal to 80 per cent of the value of the property. Once 80 per cent is reached, all additional tax derived from real estate would be payable when each year’s tax is due.
  • The deferred tax liability would be limited to a single property (or single group of properties for agricultural holdings) for each individual.
• Real estate would be considered first in the calculation of net wealth for tax purposes. This means that up to $1 billion of real estate would be exempt from the tax due to the $1 billion tax-free-threshold and would not be deferred as outlined in the previous point.

The Australian Tax Office (ATO) would publish each individual’s aggregate net wealth figure and tax
paid each financial year on a National Wealth Register.