Labor Secures Greens Support to Pass $3 Million ‘Super Tax’ Bill Through the Senate

The Labor government has secured the Greens’ support to pass its new superannuation taxes through the Senate.

Prime Minister Anthony Albanese confirmed on March 10 that the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 will pass the upper house this week without amendments.

The bill cleared the House of Representatives on March 5 and proposes reducing tax concessions for Australians with super balances above $3 million (US$2.1 million) while also boosting government contributions for low-income workers.

Under the reforms, the concessional tax rate on super balances between $3 million and $10 million will double from 15 percent to 30 percent, while earnings on balances above $10 million will be taxed at 40 percent.

According to the Association of Superannuation Funds of Australia, fewer than 0.5 percent of Australians have super balances above $3 million—around 90,000 people—and about 8,000 accounts exceed $10 million.

Greens Back ‘Serious’ Tax Reform

Greens economic justice spokesperson Senator Nick McKim said the party backed the measure as part of a broader push for tax reform.

“Greens will support Labor’s Building a Stronger and Fairer Super System Bill unamended, as a signal of our determination to see a serious, progressive tax reform package in the upcoming budget.”

McKim said the party had concerns that the government had softened earlier proposals.

“We’re disappointed that Labor has watered down its original proposal, but we strongly support the increase to the low income super tax offset, two-thirds of which will benefit women’s retirement savings.”

He argued the upcoming federal budget should go further.

“This budget is a ‘once-in-a-generation opportunity for ambitious tax reform, and we are opening the door for Labor to walk through.”

Coalition, One Nation Criticises Deal

Senate Liberal leader Michaela Cash criticised the agreement between Labor and the Greens, accusing the government of limiting parliamentary scrutiny.

“This government, they’re not the most transparent government in history.”

The Coalition also voted against the legislation in the lower house, arguing the measure is primarily designed to raise revenue rather than improve fairness in the superannuation system.

The conservative-leaning One Nation accused Labor of trying to “tax its way out of economic mismanagement.”

“One Nation’s position on superannuation is simple—it’s your money, you should be able to easily invest it how you like,” One Nation leader Pauline Hanson wrote on Facebook.

“We said any revenue raised by these new taxes should go towards income tax cuts for Australians—the Labor Party and the Greens opposed it.