Prime Minister Anthony Albanese has insisted the government's plan to double the tax rate on superannuation balances above $3 million remains unchanged, following reports that Treasury had modelled potential tweaks to address criticisms. The policy, announced in February 2023, would impose an extra 15% tax on earnings from balances exceeding $3 million, affecting roughly 80,000 people (the top 0.5% of retirement balances).
At a Senate estimates hearing on Thursday, Treasury official Diane Brown confirmed the department had modelled the impact of the changes on specific cases, such as venture capital investments, after stakeholders raised concerns. Brown stated that Albanese's office had been briefed on these concerns, which she described as routine practice.
When asked on Friday if the government was considering changes, Albanese said: “Our policy is as it stands. No, there are no policy changes that we have not made. Our policy stands.” However, his wording does not explicitly rule out future modifications, echoing language used before the government altered its position on stage-three tax cuts in early 2024.
The legislation has yet to be reintroduced since Labor's 2025 federal election win, and the government lacks the numbers to pass it without support from either the Coalition or the Greens. The Greens have indicated willingness to negotiate but have not been approached since the election, while the Coalition remains staunchly opposed. Shadow finance minister James Paterson called on the government to abandon the “hot mess of a bill.”
