Prime Minister Anthony Albanese might have to entertain the Greens if he wants his superannuation changes passed. Photo: Thomas Lucraft.
Prime Minister Anthony Albanese might not have much time for the Greens but it’s becoming more likely he’ll have to negotiate with them if he wants his superannuation tax changes passed in the Senate.
Mr Albanese wants to double the tax on super balances above $3 million from 15 to 30 per cent and tax unrealised capital gains.
But the Coalition is having none of it. Deputy Liberal leader Ted O’Brien emerged from a shadow cabinet meeting Thursday morning (5 June) vowing to oppose the changes “every step of the way”.
The Opposition has previously floated a willingness to reach agreement with the government if it dropped the unrealised capital gains component of the proposed tax changes.
But with Treasurer Jim Chalmers dismissing that idea, the Coalition is remaining opposed to the superannuation tax proposals.
“Labor’s super tax – it’s super big, it’s super bad,” Mr O’Brien said.
“It flies in the face of what we believe as a Coalition.
“We will definitely, as a Coalition, oppose this unfair super tax of Labor’s every step of the way. Every step of the way.”
Meanwhile, the Greens are offering to negotiate with Labor to get the changes through the Senate.
The government needs the Coalition or the Greens to give it the numbers to pass legislation in the Upper House.
When Federal Parliament returns on 22 July and new senators’ terms begin, the Greens will have the sole balance of power in the Senate.
But they want amendments if they are to give their consent over changes to how superannuation is taxed.
The Greens want the threshold lowered from $3 million to $2 million and for it to be indexed.
Greens Senator and Treasury spokesperson Nick McKim said he was willing to work constructively with the government on the issue to reach a fair outcome for Australians.
“Over time, Australia’s superannuation system has become less about providing a dignified retirement for working people and more of a vehicle for wealth accumulation. This needs to change,” Senator McKim said on Wednesday.
“The Greens want to ensure very wealthy Australians pay their fair share of tax so governments can do more to support people who need it.
“Obviously we have not yet seen the legislation or regulations that Dr Chalmers intends to introduce.”
On Thursday, Greens Senator Sarah Hanson-Young encouraged the Treasurer to pick up the phone and get negotiations with the crossbench party underway.
“The Treasurer’s got Nick’s number,” she said.
“You know we’ll enter negotiations in good faith.”
While Dr Chalmers is publicly insisting he intends to get the legislation passed without amendment, some form of negotiation looks increasingly likely.
Mr Albanese doesn’t want to negotiate with the Greens about the tax proposal and has so far dismissed their suggestions.
On Thursday, he said while the Greens could offer their suggestions and he would see what they had to say, they “usually do not have good points” to make.
“We have a policy; it is out there for all to see. We have a Senate. The Labor Party has 29 votes in the Senate,” Mr Albanese said.
“I will allow them [the Greens] to put forward whatever they want to do, as the Liberal Party will, as will other senators, no doubt.”
Tensions between Labor and the Greens flared this week with Senator Dorinda Cox’s defection from the minor party to the government.
Senator Hanson-Young told reporters in Parliament House on Thursday that Senator Cox should have quit the Senate all together.
“It’s not fair to the voters and indeed any of the parties involved that if somebody is elected as one party and then jumps ship later on,” she said. “I do think the honourable thing is to resign from the parliament. But, you know, that’s not the rules and we’re left where we are.
“There is a bit of hypocrisy, of course, about how Labor has responded to this.
“It wasn’t OK to jump ship for Fatima Payman but apparently when it’s people coming to them, it’s all OK.”
Senator Payman quit Labor in July 2024 over the government’s position on the Gaza conflict to sit as an independent in the Senate.
Labor said at the time Senator Payman should have quit the Senate completely if she was dumping the party [Labor] that initially got her elected.
Original Article published by Chris Johnson on Region Canberra.
