Government Faces Senate Standoff Over Superannuation Tax as Opposition Sets 'Red Lines'

Photo by Scott Graham on Unsplash

The federal government must secure crossbench support to pass its controversial superannuation tax targeting accounts worth more than $3 million, with the Liberal opposition outlining two non-negotiable demands during heated parliamentary negotiations.

Liberal MP Aaron Violi told Sky News Australia on Wednesday the Coalition will not support taxing unrealized capital gains or implementing the policy without indexation, calling both measures fundamental breaches of taxation fairness.

"There's two red lines, non-negotiables for us, and that's not taxing unrealised capital gains, which just defends every principle of fairness when it comes to taxation," Violi said during the morning television panel. "And indexation is a concern for us."

The standoff leaves Labor with two pathways through the Senate: negotiate with the Greens, who want the tax threshold lowered to $2 million but with indexation, or compromise with the Coalition on their stated concerns.

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