‘Hell hath no fury like a Green senator scorned': Labor and Greens talks on super tax complicated by Dorinda Cox defection

Sky News AU

2 days ago

Negotiations over the Albanese government's controversial superannuation tax have grown more complex following the defection of WA Senator Dorinda Cox.
Ms Cox quit the minor party over perceived extremism, according to sources, leaving the Greens depleted in the senate, with 10 members.
The Labor Party, now with 29 senators, still require the Greens to pass legislation through the upper house unopposed.
The shift adds a new dynamic to talks on a tax that the Coalition brands as 'super big and super bad'.
Prior to Ms Cox defection, Greens senator Sarah Hanson-Young suggested the party was open to compromise on the threshold at which the new tax would apply.
Labor has proposed a $3 million cap on super balances before the higher tax rate kicks in, while the Greens had originally demanded it be lowered to $2 million.
After indicating a willingness to compromise, the Greens have expressed 'disappointment' with Ms Cox's decision to join the Labor Party as a backbencher.
'Senator Cox has said that her values align with the Labor party,' Greens leader Larissa Waters said in a statement.
'This is the same Labor party who this week approved the climate wrecking North West Shelf gas project.
'Senator Cox would have had more chance of effecting change by continuing to work with the Greens in the sole balance of power.'
Shadow education minister Jonno Duniam told Sky News on Tuesday he had doubts the Greens would simply back in the super tax after Ms Cox abandoned the minor party.
'In the last 24 hours they (Greens) have been pretty well dudded by the Labor Party—and hell hath no fury like a Green senator scorned, so I'll watch that space closely,' he said.
Mr Duniam said the tax as currently written was unacceptable and warned that Labor has opened the door to broader changes that could hurt ordinary workers.
'The bill, the legislation as it stands today? No way, Jose… Some big changes (are) needed when it comes to unrealised gains and indexation,' he said.
He expressed concern about farmers and retirees whose wealth, including property or land, may be tied up in their superannuation funds.
'They're going to be taxed on the increased value of that farm... How are they going to pay for that when all of their assets are tied up and they don't have the cash?'
Labor's Assistant Treasurer Daniel Mulino defended the design of the tax and argued it was designed to ensure simplicity.
'This is not an unprecedented way to undertake taxes in our system,' Mr Mulino told Sky News.
'There are a number of areas where unrealised gains are taxed — trading stock, Australian carbon credit units, and indeed we see it with council rates.'
Mr Mulino stressed the measure's purpose was fairness, not revenue raising for the government.
'There are accounts out there of $5, $10, $100 million-plus. The system wasn't designed for that.
'It was designed for a dignified retirement, and with the $3 million threshold, we're talking about accounts that are way above what anybody would say is necessary for even a comfortable retirement.'
The superannuation tax, which the government claims will affect fewer than 0.5 per cent of superannuants initially, has been projected to raise $40 billion over a decade.
However, critics warn that the unindexed $3 million threshold will subject increasing numbers of Australians to the tax over time.
AMP Deputy Chief Economist Diana Mousina conducted modelling that showed the average 22-year-old will be hit by the tax by the time they retire.
CPA Australia's Superannuation Lead, Richard Webb, called on policymakers to ensure the policy will be indexed to inflation.
'Bracket creep is already having a silent eroding effect on personal finances,' Mr Webb said in a statement.
'Allowing this further erosion of superannuation savings is contrary to the fundamental principles of our tax system.'
The government maintains that all federal politicians with more than $3 million in super will be subject to the tax regardless of scheme type.
A spokesperson for Treasurer Jim Chalmers told Sky News the tax applied to politicians 'regardless of when they entered into parliament'.
It was recently revealed that unlike ordinary superannuants with balances above $3 million, some politicians will only begin paying the tax after they retire.