Labor to pass super tax changes with support of Greens
ABC News
March 10 2026
Jim Chalmers has thanked the Greens for engaging constructively.
In short:
Labor will pass legislation to increase the tax on those with super balances of more than $3 million, ending a years-long stalemate.
The tax bill will pass the Senate this week without amendment, after Labor secured the support of the Greens.
What's next?
The Greens say their support is a "down payment" of goodwill in the hope Labor will pursue more ambitious tax policies in the budget.
Labor will pass legislation to increase the tax on those with super balances of more than $3 million, ending a years-long stalemate.
The tax bill will pass the Senate this week without amendment, after Labor secured the support of the Greens.
It will affect about one in every 200 super fund holders from July, with balances of more than $3 million to have earnings taxed at 30 per cent instead of 15 per cent, and balances above $10 million to have earnings taxed at 40 per cent.
From July of the following year, the low-income superannuation tax offset, a top-up contribution made by the federal government, will increase from $500 to a maximum of $810 and will be paid to anyone with taxable income up to $45,000.
"We welcome this development and thank the Greens for their constructive engagement," Treasurer Jim Chalmers said in a statement.
Mr Chalmers tried to pass a similar tax bill during the last parliament, but the proposal had attracted criticism because the $3 million threshold was not indexed to inflation.
The method for enacting the tax was also controversial because it would have captured "unrealised" gains in the value of any assets held in super funds, which the current 15 per cent earnings tax does not.
Both elements were changed in a revised proposal, and the $10 million threshold and offset were added, resulting in the policy raising slightly less money per year.
In 2028–29, the new version of the tax will raise $2 billion, whereas the old proposal would have raised $2.5 billion.
How Labor's super tax proposal is changing
Jim Chalmers super
Every prominent criticism of the tax has been addressed, with the result that it will apply to fewer people and raise less money.
The Greens had long supported the policy in principle but had wanted the initial package to be more expansive and lamented that the revised version was "watered down".
In a statement, the party's economic spokesperson, Nick McKim, said the decision to cooperate was a "down payment" of goodwill in the hope that Labor would pursue more ambitious tax policies at the May budget.
"This budget is a once-in-a-generation opportunity for ambitious tax reform, and we are opening the door for Labor to walk through," he said.
Labor is considering options to change the capital gains tax discount and negative gearing, although Mr Chalmers has emphasised that no decisions have been made.
He accused the Coalition, who were expected to vote against the bill, of "defending those with millions in super at the expense of working Australians".
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Labor To Pass Super Tax Changes, Greens Support (Read 169 times)
