The Greens have warned Australia\u2019s $4tn superannuation system has become a taxpayer subsidised wealth accumulation scheme, signalling they\u2019ll take a tough line in negotiations on Labor\u2019s plans to hike taxes on accounts worth more than $3m.<\/p>\n
Treasurer Jim Chalmers confirmed on Thursday he wanted the Senate to consider the government\u2019s existing proposal to double the earnings tax on superannuation balances above $3m<\/a> \u2013 from 15% to 30%. The change affects only an estimated 80,000 people and still leaves in place highly favourable tax treatment for retirement savings.<\/p>\n The Greens want the $3m threshold lowered to $2m, and for indexation rules to be added to the proposal. Labor says its plan is the best and fairest approach.<\/p>\n Chalmers acknowledged Labor did not have a majority in the Senate and would need to work with minor parties to pass its legislation after 1 July. But he said the government was committed to controversial aspects of the plan, including taxing unrealised gains, or so-called paper profits \u2013 value increases on unsold assets.<\/p>\n \u201cIf someone\u2019s got $3m in super, by one set of assumptions their superannuation tax concession before this change is a bit over $14,000, after this change a bit over $13,000, so still very generous tax concessions for people with big balances in super,\u201d Chalmers said.<\/p>\n \u201cIt is important to remember that these changes were announced almost two-and-a-half years ago now. We did multiple rounds of consultation, and we said to people, \u2018If there is a better, fairer way of making this calculation, tell us about it.\u2019\u201d<\/p>\n The Greens Treasury spokesperson, Nick McKim, said the minor party was offering to work constructively with Labor to ensure the plan to tax retirement accounts of some of the wealthiest Australians was \u201cas strong and fair as it can be\u201d.<\/p>\n The Greens will have the sole balance of power in the upper house when parliament returns on 22 July. <\/p>\n \u201cOver time, Australia\u2019s superannuation system has become less about providing a dignified retirement for working people, and more of a vehicle for wealth accumulation. This needs to change,\u201d McKim said.<\/p>\n \u201cThe Greens want to ensure that very wealthy Australians pay their fair share of tax, so that governments can do more to support people who need it.<\/p>\n \u201cObviously we have not yet seen the legislation or regulations that Dr Chalmers intends to introduce.\u201d<\/p>\n McKim also <\/strong>said the minor party had no intention of negotiating through the media.<\/p>\n Chalmers stressed politicians will not be exempt from the change, even if their retirement savings are defined benefit accounts. Separate regulation, allowing some payments to be deferred, includes provisions for interest to be charged until account holders reach retirement.<\/p>\n Chalmers called the special arrangements a \u201cfunction of necessity\u201d.<\/p>\n Defined benefit rules are based on a formula for retirement savings \u2013 usually using an individual\u2019s salary level at retirement \u2013 rather than contributions made throughout their working life. Many politicians elected before 2004 are entitled to defined benefits, including Anthony Albanese, along with former bureaucrats and judges.<\/p>\n The Coalition had floated a possible deal with Labor to pass the plan<\/a>, provided the unrealised gains provisions were dropped.<\/p>\n