Greens economic justice spokesperson Senator Nick McKim said the Greens looked forward to discussions with the Treasurer in relation to Labor’s proposed Division 296 tax.
In a press conference on Wednesday (4 June), Treasurer Jim Chalmers said he would discuss the superannuation tax policy with the Greens ahead of Parliament returning next month, with the Greens holding the balance of power in the Senate.
Chalmers stressed that Labor still intends to pass its $3 million superannuation policy as previously proposed but acknowledged that Labor does not have the numbers in the Senate to pass the legislation on its own.
“My preference and my intention is to legislate the package that we proposed more than two years ago,” said Chalmers.
The Greens have previously put forward their own policy recommendations, which include lowering the proposed $3 million threshold for the tax to $2 million and applying indexation.
In a statement issued this week, McKim said the Greens looked forward to working with the Treasurer to make sure that the proposed tax on the superannuation accounts of the wealthiest Australians is “as strong and fair as it can be”.
“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,” McKim said.
“The Greens want to ensure that very wealthy Australians pay their fair share of tax, so that governments can do more to support people who need it.”
McKim said the Greens had yet to see the details of the legislation or regulations that the Treasurer will look to introduce next month.
A deal with the Coalition on the policy now looks very unlikely after Chalmers contradicted comments by the Prime Minister earlier this week regarding the possibility of negotiating with the opposition.
Speaking in a press conference on Thursday, Prime Minister Anthony Albanese said Labor would allow the Greens and the Coalition to put forward their policy suggestions, as well as those from other senators.
“We’ve put forward our position, [which] was before the Senate for some time,” said Albanese.
“It didn’t receive support prior to the election. But then again, the Greens and the Liberals joined to form the No-alition and to vote against public housing, to vote against a whole range of projects. We’ll wait and see.”
Earlier this week, Prime Minister Albanese said he welcomed the opportunity to work with the Coalition on changing tax rates on superannuation earnings in exchange for dropping the unrealised gains tax component of the deal.
However, the Treasurer stated on Wednesday that Labor intended to proceed with its plans to tax unrealised capital gains.
“The unrealised capital gains calculation was recommended to us by Treasury. We provided years of opportunities for people to suggest different ways to calculate that liability, and nobody has been able to come up with one, and so that’s an important bit of perspective,” he said.
“Now, when it comes to the issue more broadly, this is a change which is modest. It is methodical, as I said, it’s been on the books for years now, and it makes a meaningful difference to the budget, and it helps us fund some of our other priorities.
Shadow minister for finance James Paterson said it was “unsurprising” the Treasurer preferred to make a deal with the Greens over the Coalition in order to pass the policy.
“The Labor Party would have had to compromise so fundamentally on what they proposed that in order to even sit down and talk with us, I didn’t think they were likely to do so,” Paterson told Sky News on Thursday.
“Frankly, I’m not surprised that Jim Chalmers would prefer to do deals with the Greens, who are going to be much more accommodating, who are in favour of higher taxes, who are not worried about breaching these tax law principles, who are happy to participate in this grab raid on people’s superannuation savings.”
I arrived to Australia from
Ireland in 1983. Now I have come to retirement age and have ample retirement monies and will not be a burden on the system. I was looking forward to being able to assist my four adult children and grandchildren, but the communist Albo and Chalmers want to take my money and distribute it to others.
Aussies used to say “she will be right mate” but not saying it anymore.
So, rich lifters robbed to bribe poor leaners?
Why bother to put money in super? Open an account in a tax haven and invest it from there. Super is not really worth it any more.
Albanese stated, as quoted in the article: “It didn’t receive support prior to the election. But then again, the Greens and the Liberals joined to form the No-alition and to vote against public housing, to vote against a whole range of projects. We’ll wait and see.”
I would say that under the Labor and Greens coalition, they should be referred to as the Doom-alition or the Dem-alition. This country is doomed as they go about their systematic demolition of the wealth of this country.
Any person looking after the family budget knows that you have to live within your budget and keep something in the pantry for a rainy day. Very basic economics.