'Grossly unfair': Coalition digs in against super tax as Albanese government and Greens to pass legislation

Sky News AU

a day ago

Shadow treasurer Ted O'Brien has confirmed the Coalition will oppose Labor's tax on superannuation balances above $3 million 'every step of the way'.
Mr O'Brien officially confirmed the opposition's position on the 'grossly unfair' policy following potential negotiations on key aspects of the legislation.
He told Sky News on Thursday that the Coalition had completed its internal processes and was now united in its decision to reject the legislation outright.
'We will definitely, as a Coalition, oppose this unfair super tax of Labor's every step of the way,' Mr O'Brien said.
'This is grossly unfair and it flies in the face of everything we believe in as a Coalition.'
The Albanese government plans to double the tax rate on superannuation earnings for balances above $3 million, from 15 to 30 per cent.
The proposal controversially includes unrealised capital gains and will not been indexed – two aspects the opposition previously said it may be willing to negotiate.
Mr O'Brien has argued the government's decision to tax unrealised gains was unprecedented and dangerous.
'To think that a person can make a theoretical profit—no money has hit the bank account—and they get taxed every single year, that's not fair,' he said.
'Labor's super tax, it's super big, it's super bad. It flies in the face of what we believe as a Coalition.
'We believe in lower, simpler, fairer taxes. And Labor's tax on superannuation is none of those things.'
He also warned that the refusal to index the threshold would expand the tax's reach over time, affecting millions of middle-income workers, such as teachers and nurses.
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.'
There has also been criticism about the fact politicians under the defined benefit pension scheme will not have to pay the tax until after they retire.
Sky News also revealed recently that state officials on the old pension schemes are not expected to be taxed at all due to constitutional protections.
Labor has argued the tax is a necessary reform to ensure the superannuation system is used for its intended purpose—funding retirements.
Treasurer Jim Chalmers has said the measure is modest, fiscally responsible, and affects only a small proportion of high-balance accounts.
The policy appears set to pass the senate with support from the Greens, who have pledged in-principle backing and are negotiating final details.
Greens treasury spokesman Nick McKim has called for the threshold to be lowered to $2 million and indexed.