Greens could block super tax changes unless Labor commits to paid parental leave changes

Labor has hit back at the Greens after they announced they would use their balance of power to force the government to ensure women retire with as much money as men.

Labor have accused the Greens of siding with the Coalition and playing their “usual political games” in the latest move of what Prime Minister Anthony Albanese calls the “No-alition”.

Treasurer Jim Chalmers called on the minor party to stop playing “political games” as the Greens announced their intention toblock Labor’s bid to charge wealthy retirees more tax unless the government commits to paid parental leave changes.

Earlier this year, the government confirmed their plan to double the concessional tax rate on superannuation balances above $3m, and with the Coalition unsupportive of the change, Mr Albanese is in need of the Greens’ support to pass the Bill through parliament.

The Greens – who have Labor’s signature housing policy at a stalemate in the Senate – support the changes to the concessional tax rate, but have warned they will use their balance of power to ensure Labor makes superannuation on paid parental leave a priority reform.

Mr Albanese said the Greens formed a “new No-alition” when they joined forces with the Coalition to block the $10 billion Housing Australia Future Fund earlier this year.

Dr Chalmers said the government supports paying women superannuation on paid parental leave, but called on the Greens to stop playing game as budget restraints rendered it difficult for the time being.

“It’s getting harder to tell the difference between Peter Dutton’s Liberals and the Greens in the Senate,” Dr Chalmers said.

“If they support tax reform to make concessions less generous for people with millions of dollars in super, then they should vote for it.

The Greens have threatened to block Labor’s super tax changes unless they commit to paying superannuation on paid parental leave. Picture: NCA NewsWire / Martin Ollman

Greens senator and spokeswoman for women, Larissa Waters, said it would cost the government $200m a year.

“This is such a timid change to the tax concessions that the obscenely wealthy receive. If the government is not going to improve that, the least they can do is put it to good use,” Senator Waters told ABC Radio.

“And paying super on PPL is less than ten per cent of the revenue that would be raised by their proposal. This is eminently doable, and frankly long overdue reform.”

The government has held the view that they would make the change when they could afford to do so.

According to Industry Super, on average women retire with $67,000 less than men for a variety of reasons, but women taking around five years off work in their 30s alone shaves about $100,000 off their average retirement savings.

Pressed on whether the party would really vote down the tax changes, Senator Waters warned the government to “come to the table”.

“We are putting the call out to government to make good on their alleged commitment to putting super on paid parental leave,” she said.

“Their latest excuse was … that they couldn’t afford it, which is just nonsense when they’re wasting $313b on stage three tax cuts. They come up with all sorts of excuses, and women are sick of it. We’re sick of waiting.

“We deserve paid parental leave … Get on with it and actually follow through.”

The Greens sought to add super to paid parental leave earlier this year when legislation expanding the payment to 26 weeks went through government – an amendment that was voted down by Labor and the Coalition.

The government agrees in-principle to paying super on PPL but there are concerns about cost. Picture: NCA NewsWire / Martin Ollman

Dr Chalmers said the government had “already” extended paid parental leave in a bid to boost women’s economic opportunity.

“We’ve already made it clear for some time that we intend to act on the super guarantee on PPL when budget circumstances permit – that remains the case and we’ve said so publicly and repeatedly,” he said.

“The Greens should stop playing their usual political games, stop opposing tax reform for offshore gas and the wealthiest people in the super system, stop siding with the Liberals, and support our changes which help fund big new investments in Medicare and housing.”

Parliament will resume next week, as the deadline for a second vote on Labor’s Housing Australian Future Fund draws near.

Labor has announced increased funding for social housing and a package to incentivise states and territories to build an extra 1.2 million homes over coming years, but the Greens want stronger rental reforms before they give their support.