Greens seek $1.9m threshold on cuts to super concessions

The Greens will push the government to lower its proposed threshold on super balances facing cuts to tax concessions from $3m to $1.9m.

Greens economic justice spokesman Nick McKim. Picture: NCA NewsWire / Gary Ramage

The Greens will push the government to lower its proposed threshold on super balances facing cuts to tax concessions from $3m to $1.9m.

It follows the Parliamentary Budget Office releasing data revealing the government could add $1.7bn to its budget bottom line by reducing the threshold to accounts with a balance of $1.9m, which the Greens argue is needed in order to fund a meaningful rent assistance package to help Australians in the short term.

The figures, commissioned by the Greens, showed the $3m cap would add $2.5bn to the bottom line by 2025-26, compared to $1.4bn with a $5m cap. By comparison, the $1.9m cap would add $4.3bn.

Greens economic justice spokesman Nick McKim said: “Labor’s minimalistic plan is not enough to curb wealth inequality. The Greens want Labor to eliminate all superannuation tax concessions above $1.9m.

“If Labor gets real about tackling inequality, we can raise serious money to help address the cost-of-living crisis, like ending handouts to the top 1 per cent to fund an increase in income support or doubling rent assistance.

“We … urge Labor to direct revenue from curbing these concessions towards helping those who need it most.”

The government earlier this week confirmed it would move to double the concessional tax rate on super balances of more than $3m, so about 80,000 people will pay 30 per cent on their super earnings instead of the current 15 per cent.

Independent senator David Pocock backed the changes, arguing that superannuation balances of more than $3m were “absolutely” fair game, while Jacqui Lambie Network senator Tammy Tyrrell said the crackdown on concessions was “worth talking about”.

But given the Coalition strongly opposes the changes, the Greens’ newly announced position will complicate the bill’s passage through the Senate.

Asked if the Greens would oppose Labor’s legislation if the threshold were not reduced from $3m, a Greens spokeswoman said “we will look at anything the government puts forward in good faith”.

Senator McKim also raised the Greens’ desire for Labor to scrap its stage three tax cuts, before it would support the super changes.

He said whatever the changes to super, Labor should not wait until 2025 for them to take effect. “Our proposal would take effect from 1 July this year,” he said.

The Greens have made similar demands on other pieces of legislation due to go before parliament in the next fortnight, including the social housing plan, which the party argues does not go far enough to ease pressure on renters in particular.