A Greens MP has backed the Albanese government’s controversial superannuation tax overhaul in the House of Representatives, as negotiations continue ahead of a crucial Senate vote.
Greens member for Ryan, Elizabeth Watson-Brown, voted in favour of the Labor government’s proposed reforms targeting high-value superannuation balances. The legislation would increase the concessional tax rate on earnings for super accounts holding between $3 million and $10 million from 15 per cent to 30 per cent, while balances exceeding $10 million would face a 40 per cent tax rate on earnings.
Despite Watson-Brown’s support in the lower house, the vote carries little practical effect on the outcome because Labor holds a comfortable majority in the chamber. The bill’s ultimate fate will depend on whether the government can secure sufficient backing in the Senate, where crossbench support is required.
Treasurer Jim Chalmers introduced the legislation as part of the government’s broader push to reshape superannuation tax concessions and ensure the retirement system remains financially sustainable. The proposal aims to reduce the scale of tax advantages available to Australians with the largest retirement balances while maintaining incentives for most workers to save through super.
According to Treasury estimates, the reforms would affect a relatively small share of the population, targeting roughly 90,000 individuals with multimillion-dollar super balances.
The policy has been politically contentious since it was first proposed in 2023 as part of Labor’s effort to curb generous tax concessions in the retirement system. Under the proposal, earnings above the $3 million threshold would be taxed at 30 per cent, doubling the current concessional rate applied to super fund earnings.
Critics, including the federal opposition and some business groups, have argued the measure could eventually affect a larger number of Australians if thresholds do not keep pace with inflation. Others have raised concerns about how the tax could interact with assets such as farms or business investments held within self-managed super funds.
The legislation currently before parliament reflects revisions to an earlier version that stalled during negotiations with crossbench MPs. Changes introduced by the government included indexing the $3 million threshold and delaying the start date of the new tax measures until 1 July 2026.
Although the Greens broadly support the principle of reducing tax concessions for wealthy super account holders, the party has previously indicated it may seek further amendments. Greens representatives have argued that the threshold could be lowered to capture more high-wealth accounts while ensuring indexation keeps pace with inflation.
Negotiations between the Greens and Treasurer Chalmers are expected to continue before the bill reaches the Senate, where the party could hold the balance of power in determining whether the reforms pass in their current form.
