Save
How this rare wealth threshold shift impacts you
The threshold for qualifying as a high-wealth individual has changed for the first time in years, and it has a knock-on impact for Australian taxpayers.

How this rare wealth threshold shift impacts you
The threshold for qualifying as a high-wealth individual has changed for the first time in years, and it has a knock-on impact for Australian taxpayers.

Australians who control a net wealth of $50 million or more will now be classified as high-wealth individuals (HWIs). This is up from the previous threshold of $30 million.
This is the first time the threshold has been touched since 1996.
What does this mean?
Thresholds are in place for a variety of reasons. One of the uses of a threshold is for monitoring and surveillance – the government and its regulators apply different types and levels of scrutiny to each group of taxpayers.
Those who fit squarely into the revised category, which is now a smaller and more manageable group, should expect regulatory scrutiny.
“HWI clients should expect ongoing engagement from the ATO, and in particular, as a result of increased funding from the federal government under the Tax Avoidance Taskforce and Serious Financial Crime programs,” said HWL Ebsworth senior associate Vincent Licciardi.
“Clients should proactively engage with the ATO where possible, in particular, if mistakes have happened when administering complex HWI tax affairs,” he said.
“Clients should also have robust tax risk management processes in place before taking a tax position that could attract the ATO’s attention. This could include seeking legal advice or an expert opinion in the form of a Reasonably Arguable Position,” he said.

Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. ...Read more

Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. ...Read more

Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. ...Read more

Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. ...Read more

Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. ...Read more

Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. ...Read more

Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. ...Read more

Tax saving
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. ...Read more

Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. ...Read more

Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. ...Read more

Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. ...Read more

Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. ...Read more

Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. ...Read more

Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. ...Read more

Tax saving
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more