Senate path possible for superannuation reforms

Teal MPs who represent electorates with some of the highest average superannuation balances are split on whether to back a change that affects accounts with more than $3m.

Independent ACT senator David Pocock. Picture: NCA NewsWire / Gary Ramage

Teal MPs who represent electorates with some of the highest average superannuation balances are split on whether to back a change that affects accounts with more than $3m, as a pathway opens up for Anthony Albanese to push the ­reforms through the Senate.

While the Coalition is firmly opposed to the government’s move to double the concessional tax rate on super balances with more than $3m, so that about 80,000 people will pay 30 per cent on their super earnings instead of the current 15 per cent, the Greens, Jacqui Lambie Network (JLN) and ACT independent senator David Pocock are open to the reform.

Mr Albanese must win over the Greens and two other senate crossbenchers to legislate the change, which he wants to do ­before the next election.

Senator Pocock said superannuation balances with more than $3m were “absolutely” fair game and JLN senator Tammy Tyrrell, who with colleague Jacqui Lambie represent two senate votes, said the crackdown on super tax concessions was “worth talking about”.

“At the moment, it’s just an idea. We don’t have a Bill yet and I won’t make up my mind until we do,” Senator Tyrrell said.

 

Senator Pocock said: “At a time when the budget is so tight, I welcome the winding back of tax concessions for people with millions of dollars in superannuation. This will allow the budget to work harder for people most in need.”

One Nation leader Pauline Hanson and United Australia Party senator Ralph Babet were against the tweak to super, which Treasurer Jim Chalmers has insisted is a “modest” change, and lashed the government for “shifting the goalposts”. “It sets a dangerous precedent. The government should instead tighten their belts and stop raiding taxpayers’ wallets,” Senator Babet said.

Independent MP Kate Chaney, who represents the Perth seat of Curtin, which is home to the highest average super balance in the state of $295,788, and Mackellar MP Sophie Scamps (average balance of $234,601), are the only teal MPs to endorse the super reforms so far. Ms Chaney concedes more of her constituents may be affected. “Still, the vast majority in my electorate are not directly affected,” she said. “I acknowledge they’ve made investment decisions based on a particular set of rules. You’re not going to be happy when those rules change and some people in good faith are in that situation. But on balance, I think this is the right thing for the country to ensure that tax concessions we provide on superannuation are proportionate to the need.”

North Sydney teal MP Kylea Tink, whose constituents have an average super balance of $290,991, the second-highest of NSW seats, was scathing of the way the government had workshopped an issue that was “of such critical importance to all working and retired Australians at a time when household budgets are under increasing financial stress”. “The key message my constituents have taken from the government’s statements during the past week is that their once watertight superannuation is no longer out of bounds,” she said.

Wentworth teal MP Allegra Spender, whose constituents have an average balance of $291,832, the highest in NSW, said she had found more support for the change than one might expect but wanted to see the legislation before finalising her position. “People are concerned to see the detail of how it will affect those who are retired or close to retirement and to make sure this extends to those on defined benefit schemes as well,” she said.

Zoe Daniel, the teal member for Goldstein, where people have an average balance of $304,048, wanted to know how the government planned to spend the revenue from the change and noted the potential to add super entitlements to the Commonwealth’s Paid Parental Leave scheme.