7am Why Chalmers backtracked on big super balances
Oct 17, 2025
Join veteran journalist Paul Bongiorno as he unpacks the surprising backtrack on superannuation reforms announced by Jim Chalmers. Paul reveals the political pressures that led to the government easing tax on high super balances, citing media influence and internal dissent. He discusses the original goals of addressing wealth inequality, the behind-the-scenes maneuvering by Paul Keating, and reactions from various political parties. Bongiorno also highlights the broader implications for future tax reforms and the need for courageous political leadership.
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Surprising Backflip On Super Tax Design
- Jim Chalmers reworked his super reforms to tax unrealised capital gains less for very large balances, surprising many observers.
- The change removed taxation on unrealised gains for accounts over $10m and adjusted marginal rates between $3–10m and above $10m.
Announcement Arrived While PM Was Away
- Paul Bongiorno recounts the timing: Albanese left on holiday as Chalmers faced the announcement alone.
- A mid-morning press notice and surprise conference made the move appear hurried and awkward.
Political Cost Drove Policy Retreat
- Anthony Albanese judged defending the original non-indexation policy would cost too much political capital amid blowback.
- Backlash came from media scare campaigns and senior figures like Paul Keating, prompting the retreat.