Prime Minister Anthony Albanese has reiterated that the government's plan to double the tax rate on superannuation balances over $3 million remains unchanged, despite reports that Treasury had briefed his office on stakeholder concerns. The policy, announced in February 2023, would impose an additional 15% tax on earnings from balances above the threshold, affecting roughly 80,000 people or 0.5% of retirees.
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 described the briefing to Albanese's office 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.' However, his wording did not explicitly rule out future adjustments, echoing language used before the government altered its position on stage-three tax cuts in early 2024.
The legislation has not been reintroduced since the government's 2025 election win, fuelling speculation it is under review. Critics argue the policy taxes 'unrealised gains' and that the $3 million threshold is not indexed, meaning more people will be affected over time.
The government needs either Coalition or Greens support to pass the bill. The Greens have indicated willingness to negotiate but say they have not spoken with Labor since the May election. Shadow finance minister James Paterson urged the government to abandon the 'hot mess of a bill', while Greens economic spokesperson Nick McKim criticised Labor's lack of progress.
