The tax that takes $42 million of my Bitcoin (and why I'm nauseated, but no longer worried)

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"You are rich if and only if the money you refuse tastes better than the money you accept." - Nassim Taleb

I've been losing sleep over Division 296.

Basically, Division 296 amendment bill is Australia's proposed superannuation tax. Superannuation is Australia's mandatory retirement savings system—think 401k but everyone must contribute 11.5% of their salary (usually through employers, having offered it when negotiating a salary package). The Division 296 proposal specifically aims to target people with large super balances, adding an extra 15% tax on top of the existing 15% rate.

But heres the kicker. It taxes unrealised gains—paper profits not actually received. Your Bitcoin goes up in value but you don't sell? "SORRY," says the Australian government. You still owe tax on the appreciation.

Gross.

So for about a month now, I've been spiraling through defensive scenarios. Should I restructure my SMSF (Self-Managed Super Fund—basically a DIY retirement account where you control the investments)? Time my withdrawals? Use buffer stocks to pay the tax? Move everything outside super?

Classic reactive thinking—letting government policy drive my financial decisions instead of my convictions. Then I did the math on what Division 296 would actually do to my current 1.137 Bitcoin in super...

These Numbers Broke My Brain

Based on Michael Saylor's base case (Bitcoin reaching $13 million by 2045), here's what Division 296 does to my retirement:

Without Division 296: My 1.137 Bitcoin becomes worth $59 million AUD at age 65 (standard retirement age in Australia).

With Division 296: My 1.137 Bitcoin becomes worth $16.7 million AUD at age 65.

Wtf. The government takes $42.2 million—71.6% of my potential wealth over 24 years.

I think I must have stared at these numbers for at least an hour. Jesus. My first reaction was rage (I mean, understandable, right?)

Then stronger rage. And then... something shifted.

See, even after the government takes $42 million of my Bitcoin, I still get an 86x return. My $194,000 becomes $16.7 million. That's still 20.4% annual returns after the most aggressive wealth confiscation in Australian history. In the end Bitcoin is so powerful that even 71% government interference can't stop life-changing wealth creation.

And I was so focused on what the government might take that I missed what I'd still be getting. This did make me wonder for a sec: am I actually bullish on Bitcoin, or just pretending to be? Because if I truly believe Saylor's projections—if I really think Bitcoin hits $13 million per coin—then Division 296 is expensive noise (real expensive, rage-inducing noise), but it's still just...noise.

And the timeline matters too. Bitcoin needs to hit $3 million AUD before individual holdings trigger the threshold. Based on current growth, that happens around 2037, when I'm 53. That theoretically gives me 12 years of pure compound growth before any gouging begins.

I can whinge until the cows come home. I can make submissions and support authorities who make submissions and rally cry on my YouTube channel. Or I can exercise my sovereignty by building wealth so overwhelming that government interference becomes manageable business expense? I can accumulate so much Bitcoin that even a disgusting 71% confiscation still leaves me wealthy beyond imagination?

Instead of trying to game the superannuation system, I'm increasing my Bitcoin contributions everywhere. Not just outside super—everywhere, including super.

Let them gouge 15% annually. I dare them.

If Bitcoin does what I think it does, I can afford to be generous with government taxation. I'd rather have 0.3 Bitcoin worth $16 million after government gouging than 1 Bitcoin worth $3 million because I was too scared to accumulate properly. The government can be my biggest business partner, as long as I (and my kids) still get life-changing wealth.

The Conviction Test

This is the ultimate test of Bitcoin conviction. If I believe it's going to $13 million per coin, then Division 296 is a luxury tax I can afford. If I don't believe that, then genuinely...why are I am holding Bitcoin at all?

This week I learned something interesting when I decided to increase the superannuation payments to Bitcoin to account for this Div 296 amendment potential. Instead of feeling anxious about the extra 'risk,' I felt... relieved? Like I was finally matching my actions to my actual beliefs instead of optimising for other people's comfort levels..."

Sadly, Division 296 might pass. But it also might not. It might get watered down to income-based taxation. It might get repealed by the next government. There are plenty of ways I transition out of the hellishness of this current political potential. But either way, I'm set.

Cos I'm not betting my financial future on political outcomes.

I'm building wealth that wins regardless.

Vive le You,
Aimee

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PS. I found this 'history repeating' example quite interesting:

Argentina's "temporary" wealth tax introduced in 2020.

Initially sold as a one-time "solidarity contribution" targeting only the ultra-wealthy (sound familiar?), it applied to assets over 200 million pesos - roughly $2.4 million USD at the time. The government promised it would only affect 12,000 people and help fund COVID recovery.

Just like Division 296, it included provisions for taxing unrealised gains on certain assets. Just like Division 296, it targeted wealth held in specific structures. Just like Division 296, proponents argued it would only impact those who could "afford to contribute more."

Three years later, the threshold hasn't been indexed for inflation (surprise), meaning middle-class families now qualify. The "temporary" tax has been extended twice. And wealthy Argentines who saw this coming have moved significant assets to Uruguay, Miami, and other jurisdictions.

The pattern: start with the wealthy, expand to the middle class, make the temporary permanent.

Again: gross.

This newsletter is for people who refuse to play by broken rules. Let's build the Age of Abundance instead.

Thoughts? Things you'd like to see more of? Hit me up at: moneypowergloryofficial@gmail.com