Shadow treasurer Ted O'Brien doubles down on Coalition's conditions for super tax support, demands Labor ditch key elements

Sky News AU

2 days ago

Shadow treasurer Ted O'Brien has reaffirmed the Coalition will not support Labor's proposed superannuation tax changes unless the government scraps the tax on unrealised capital gains and agrees to index the $3 million threshold.
The government's widely criticised proposal to increase the tax rate on superannuation funds exceeding $3 million, while also targeting unrealised capital gains, is likely to pass parliament as Labor's majority in both houses means the party's sole obstacle is gaining approval from the Greens.
The controversial policy would raise the earnings tax on superannuation balances above $3 million from 15 per cent to 30 per cent.
Treasurer Jim Chalmers has refused to index the $3 million figure.
Mr O'Brien has doubled down on earlier declarations the Coalition would consider offering bipartisan support for the plan if Labor scrapped taxing unrealised gains and indexed the threshold in its controversial superannuation proposal.
'We think that Labor's super tax is super big and super bad. I can't think of one element of it I like, candidly,' he told Sky News Host Sharri Markson on Monday.
'If, though, that Labor does want to speak to the Coalition, then they'll have to walk away from a lot of those aspects of what they've put forward.
'There's no doubt in opposition we will be constructive where we can, but critical where we must."
Mr O'Brien said there was 'no choice but to be absolutely critical' as the two aforementioned aspects of the policy were clearly "egregious'.
The government also faces pushback from the Greens, which has expressed support for taxing unrealised gains but urged Labor to lower the threshold to $2 million and index this with inflation.
Labor's proposal is set to impact more Australians than the Greens' counterproposal over the long term, according to the Australian Financial Review.
The Greens' plan to lower the threshold by a million would mean an additional 16,000 taxpayers would be roped in throughout the first year, however, it would hit fewer Aussies after about 16 years.
Mr Chalmers claimed the tax would initially only hit 80,000 Australians. However, Assistant Treasurer Daniel Mulino conceded about 1.2 million, or 10 per cent of taxpayers, would be impacted within 30 years.
Mr O'Brien said the Coalition would 'always be open' to discussions, but stressed this did not mean it would offer unconditional support.
'If indeed Jim Chalmers wants to come and have a discussion with the Coalition about his super tax, well, he would have to firstly walk away from the unrealised capital gains component, and at least, he should be compromising on indexation," he said.
'Now, if he caves in on all those things and wants to talk about super reform - then let's have a chat about super reform.'