Teals harden stance on Labor’s superannuation tax reform

Teal independents are doubling down on their opposition to Labor’s proposed increases to taxes on superannuation balances above $3m.

Zali Steggall in Manly. Picture: Justin Lloyd.

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Teal independents are doubling down on their opposition to Labor’s proposed increases to taxes on superannuation balances above $3m, saying it is “vital we maintain trust and certainty in the super system” into the next term of government.

Despite Jim Chalmers pushing to double the concessional tax rate to 30 per cent on super ­accounts worth $3m or more, a lack of support from the crossbench forced Labor to shelve its reforms until after the election.

While the Greens have been open to negotiating on the bill, though with the desire to reduce the threshold of super balances to $2m, other members of the crossbench have raised alarm with the legislation. Zali Steggall, Warringah MP and the first teal independent, has hardened her opposition to the tax reform.

“Australians have been ­encouraged to invest in their super to support a secure retirement, so should not be penalised for doing so,” she said.

“With an ageing population, it’s vital we maintain trust and certainty in the super system. The now-shelved policy posed serious concerns, including taxing unrealised gains and the lack of indexation, both of which risked capturing far more people than initially suggested.”

She said it was “disappointing” that Labor was focused on ­increasing taxes rather than ­focusing on winding back the ­billions in public funding that went to mining via “the perverse fuel tax credit scheme or properly taxing gas companies through the petroleum resource rent tax”.

Goldstein independent Zoe Daniel said while she was open to working with the government on the legislation, she also remained opposed to elements of the bill.

“My key issue with this is the fact that it may tax unrealised capital gains,” she said.

ACT independent David ­Pocock pointed back to comments made earlier this year, when he also criticised any increased taxes on unrealised gains.

“Valuations can fluctuate wildly year-to-year and taxing ‘paper gains’ that may never be realised is unfair and unworkable,” Senator Pocock said.

“I will continue to work for ­effective reform, but I’ll stand up for tax policy that is fair, practical and grounded in reality.”

The Treasurer made clear in December last year that he would push ahead with the “unfinished business” and legislate Labor’s tax increase on high-­balance nest eggs.

But the policy, which is vehemently opposed by the Coalition, has sparked alarm in various ­sectors, including investor groups who last week urged Labor to rule out extending the proposal to ­investments outside of super­annuation such as real estate or family trusts.

Concerns around superannuation have ramped up during the election in the wake of US President Donald Trump tariffs, which had an impact on superannuation funds and their investments.