subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

How this rare wealth threshold shift impacts you

Chris Jordan

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.


How this rare wealth threshold shift impacts you
Chris Jordan
nestegg logo
subscribe to our newsletter sign up
Recommended by Spike Native Network
Dr Terry Dwyer, Dwye... - She is quite right of course. Returns to both capital and labour incomes are much reduced by taxation and it has increased enormously since the.......
Anonymous - A Bad call by the RBA. Lower interest will not stimulate the economy any more at 1.25% than at 1.5%, which was already too low. The imminent election.......
Shelly H - Im with ING, have a Mortgage Simplier Account and they haven't dropped my interest rate. Where is this information coming from......or is it for new customers only!!....
Anonymous - agree entirely and would add that putting the money into super locks it away and gives the government control over you and your money. The 'blue sky'.......