The Albanese government’s controversial plan to double the tax rate on funds in super accounts above $3m and hit unrealised gains could soon be legislated.

Labor has claimed the tax will hit just 80,000 super accounts, however, Wilson Asset Management founder Geoff Wilson, who has launched a petition opposing the plan, said by forcing Aussies to pay taxes on paper gains it will hinder investment in Australia.

“Both Anthony Albanese and Jim Chalmers - and probably most of the government - are gaslighting the Australian people by saying: ‘Look, this will only impact a very small percentage of people that pay the additional tax’,” Mr Wilson told Sky News.

“That's correct, but what it'll do is actually impact about how $4.2 trillion in superannuation is invested.

“We anticipate that the money will come out of self-managed super funds (SMSF), which is about $1.1 trillion, and billions of that will go into the housing market and push house prices up.”

He cautioned Aussies who use their SMSF as a low tax investment vehicle will be discouraged from funding projects and businesses in the Australian market.

“People won't want to take risk on their superannuation in in the self-managed super funds,” Mr Wilson said.

“The angel investors and the startups and the small companies in Australia that find it hard to raise capital, particularly at this point in time - that tap's going to be turned off.”

He pointed to the taxing of unrealised gains in Norway that drove investment out of the country despite initial expectations it would bring in millions.

“It was only for the ultra-wealthy, they thought they were going to raise $150 million,” Mr Wilson said.

“Instead of raising that, they were minus half a billion.”

He also noted the capital gains tax hike in the United Kingdom which resulted in the government taking in 10 per cent less capital gains tax revenue.

“People change their behaviour,” Mr Wilson said.

“We've done economic models, we think it'll be negative to the tune of $94.5 billion on the Australian economy.”

Alongside taxing unrealised gains, Labor’s super tax has drawn criticism for its failure to index the $3m threshold over time.

The Greens want Labor to lower the threshold to $2m and index it to the rate of inflation.

New analysis from the Financial Services Council shows that under Labor’s plan more than half a million Aussies currently in the workforce will be captured by the tax.

Of those impacted, more than 200,000 are currently under 30, while 135,000 are between 30 and 34 and 65,000 are between 35 and 39.

The number of impacted taxpayers greatly drops off for Australians 40 and over.

The Greens’ proposal would hit more than 200,000 Aussies currently in the workforce and is more evenly spread across the age ranges.

Financial Services Council CEO Blake Briggs urged Labor to listen to feedback from consumers, industries and economists on how the tax will impact future generations.

“The superannuation industry recognises the government has the capacity to force the new tax through the Parliament with the support of the Greens, but encourages the two parties to take a more constructive and consultative approach,” Mr Briggs said.

“The Financial Services Council encourages the Government to consult on options that would not unfairly target future generations of Australian superannuation consumers and undermine confidence in our retirement system by introducing a new, contentious tax on unrealised capital gains.”