Labor and Greens set for another standoff, this time over $3m-plus super balances

The Greens and Labor could be gearing up for another battle, this time on a proposed policy to double the tax rate for high-balance super accounts above $3m.

A doubling of the tax rate would only hit the very top of town; $3m is almost nine times the average super balance of 60 to 64 year olds and 10 times the median balance.

Treasury previously estimated about 80,000 Australians had more than $3m in their super account.

About 8 per cent of people in North Sydney and Hornsby have more than $3m, as do about 7 per cent of inner Melburnians.

Assistant Treasurer Stephen Jones introduced the Bill to change the top tax rate 12 months ago. But independent Senators flagged opposition based on taxes on unrealised gains for farmers before the Bill even made it to the upper house.

The Bill has stalled from there and run into a logjam in the last sitting week of the year.

On Tuesday, Finance Minister Katy Gallagher said the changes remained Labor policy, however did not confirm whether the Bill would go to a vote in the final sitting week of 2024.

She also acknowledged there could be opposition to the legislation in the Senate.

“It’s an obstructionist chamber,” Senator Gallagher said.

“There’s a big cross bench with different views, we’ve got an opposition that doesn’t want to work with the government, that wants to stop progress, but we are going to be fighting right up to the end.”

Treasurer Jim Chalmers pointed the finger at the Greens.

“The Greens want to vote against fairer taxes on people with millions in super,” Dr Chalmers said.

“They shouldn’t need us to sweeten the deal in order to do the right thing.”

“This is housing all over again, with the Greens saying they want fairer taxes, then choosing to vote against them.”

The Treasurer was referencing the Greens caving after months of opposition to the government’s two signature housing policies this week.

Negotiations between the government and the minor party are ongoing.