The Greens have announced they are ready to block Labor’s bid to charge wealthy retirees more tax unless the government commits to paid parental leave changes, claiming women are “sick of waiting”.
Earlier this year, the government got the Opposition off-side when they confirmed their plan to double the concessional tax rate on superannuation balances above $3m.
It left Prime Minister Anthony Albanese in need of the Greens support to pass the Bill through parliament.
The Greens – who have Labor’s signature housing policy at a stalemate in the Senate – support the changes to the concessional tax rate, but have warned they will use their balance of power to ensure Labor makes superannuation on paid parental leave a priority reform.
The government in-principle supports paying women superannuation while accessing the Commonwealth’s paid parental leave, but have long said they have concerns about affording the policy reform amid ballooning costs elsewhere.
Greens senator and spokeswoman for women, Larissa Waters, said it would cost the government $200m a year.
“This is such a timid change to the tax concessions that the obscenely wealthy receive. If the government is not going to improve that, the least they can do is put it to good use,” Senator Waters told ABC Radio.
“And paying super on PPL is less than ten per cent of the revenue that would be raised by their proposal. This is eminently doable, and frankly long overdue reform.”
The government has held the view that they would make the change when they could afford to do so.
According to Industry Super, on average women retire with $67,000 less than men for a variety of reasons, but women taking around five years off work in their 30s alone shaves about $100,000 off their average retirement savings.
Pressed on whether the party would really vote down the tax changes, Senator Waters warned the government to “come to the table”.
“We are putting the call out to government to make good on their alleged commitment to putting super on paid parental leave,” she said.
“Their latest excuse was … that they couldn’t afford it, which is just nonsense when they’re wasting $313b on stage three tax cuts. They come up with all sorts of excuses, and women are sick of it. We’re sick of waiting.
“We deserve paid parental leave … Get on with it and actually follow through.”
The Greens sought to add super to paid parental leave earlier this year when legislation expanding the payment to 26 weeks went through government – an amendment that was voted down by Labor and the Coalition.
Mr Albanese has accused the Greens of forming a “No-alition” with the Liberals over their blocking of Labor’s key reforms.
Parliament will resume next week, as the deadline for a second vote on Labor’s Housing Australian Future Fund draws near.
Labor has announced increased funding for social housing and a package to incentivise states and territories to build an extra 1.2 million homes over coming years, but the Greens want stronger rental reforms before they give their support.