Teal MP Allegra Spender accuses Liberals of inaction on Labor’s super tax grab

Teal MP Allegra Spender has accused the Liberals of being missing in action in the fight against Labor’s new superannuation tax.

A Teal MP has accused the Liberal Party of failing to hold the government to account on its plans to tax wealthy retirees on their super.

Wentworth MP Allegra Spender has been a vocal critic of Labor’s new 15 per cent tax on super balances of more than $3m.

The policy will controversially tax unrealised gains, and the $3m threshold will not be indexed — meaning more Australians will be captured by the tax as time goes on.

Ms Spender has now accused the Liberals of being missing in action on the issue after the Coalition did not turn up to vote on amendments on the proposed laws last year.

In the House of Representatives, where Labor had the numbers to pass the bill, former Teal MP Kylea Tink moved an amendment pushing for the $3m threshold to be indexed annually. The Coalition did not turn up to support the Teal MPs’ amendments.

Wentworth independent MP Allegra Spender has lashed the Liberals for not fighting Labor’s new superannuation tax. Picture: Justin Lloyd

“In the last parliament the Liberals refused to support an amendment for indexation moved by the independents,” Ms Spender said.

“That was very disappointing and I’m glad the Liberals have finally come on board.”

Ms Spender said she had “consistently advocated” for the government to rethink the superannuation proposal.

“Taxing unrealised gains, paper profits that may never be seen, is bad tax policy,” she said.

“It will also undermine investment in the dynamic start-ups we need to drive our productivity growth.”

The Coalition has opposed the policy in its entirety.

Liberal Senator Andrew Bragg accused Ms Spender of being desperate in her attacks.

Senator Andrew Bragg has hit back, saying the Coalition opposes the new superannuation tax in its entirety. Picture: Martin Ollman

“The Senate hasn’t voted for the bill yet and frankly, the Teals have nothing to do with that,” Mr Bragg said.

“It’ll be down to how the Coalition and the Greens decide to play it.

“We are opposed to the unrealised gains, we are opposed to it not being indexed, we are opposed to the tax in its totality — it is a bizarre complaint to make about the Liberal Party.”

The Greens will hold the balance of power in the Senate and are in support of the tax policy that has been panned by economists for going against the basic principles of taxation law.

The policy would impact 0.5 per cent of Australian super account holders, but without indexation, it could capture as many as 2 per cent in coming years.

In the final days of the election, and more recently, the Coalition has ramped up its attacks on the policy, with Labor MPs saying Liberal volunteers were raising the issue at polling booths on election day after laying low on the issue earlier in the campaign.

There was internal frustration within the Liberal Party that treasury spokesman Angus Taylor, finance spokeswoman Jane Hume and assistant treasury spokesman Luke Howarth did not draw greater focus to Labor’s super tax proposal throughout the election campaign.

Originally published as Teal MP Allegra Spender accuses Liberals of inaction on Labor’s super tax grab