What was debated in Parliament
Summarised using AI from the official Hansard transcript of the debate only. It is not a record of the debate and may leave things out. Read the Hansard below to check it.
This bill raises the tax rate on earnings from superannuation balances above $3 million, to 30 per cent, and to 40 per cent above $10 million, with both thresholds indexed. It also boosts the low-income superannuation tax offset, lifting the maximum payment to $810 and the income limit to $45,000. The debate focused on fairness, trust in tax promises, and whether existing balances should be protected from the change.
Arguments made in support
The government said super tax breaks cost over $60 billion a year and mostly help top earners, so targeting large balances is fairer and more sustainable.
Labor members said fewer than half a per cent of Australians would pay more, while about 1.3 million low-income workers, mostly women, would get more super.
Supporters said the extra tax only applies to the share of earnings above each threshold and only to future earnings.
Government members said the design reflected more than two years of consultation and changes announced in October 2025.
Independent Allegra Spender supported the bill, saying it addresses fairness between generations while being fair overall to existing super holders.
Arguments made against, or for changes
The Coalition said this is a new tax not taken to the election, and that the government cannot be trusted on tax.
Coalition speakers said the government has a spending problem, and raised concerns about self-managed super funds, surviving spouses and disability benefit recipients.
The Coalition said the offset increase was welcome but modest and would not help with cost-of-living pressures now.
Coalition member Terry Young moved amendments to protect existing balances, saying it is unfair to change rules after people have planned their retirement. The government opposed this.
Allegra Spender moved an amendment allowing a one-off withdrawal for people under 60 above the threshold. The government opposed it, citing constitutional issues.
51 speeches by 16 members in the House and Senate over 4 sitting days.
Hansard: House of Representatives, 11 Feb 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 3 Mar 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: House of Representatives, 5 Mar 2026 ›
The official Hansard (PDF), Parliament of Australia
Hansard: Senate, 11 Mar 2026 ›
The official Hansard (PDF), Parliament of Australia
Every party member who voted went with the majority of their party.