The Albanese government has secured a vital legislative victory after the Australian Greens pledged to pass the controversial Division 296 superannuation tax unamended.
The deal, which targets balances exceeding $3 million, effectively signals a "green light" for a high-taxing May budget, with the minor party framing the move as a down payment on "ambitious" progressive reform.
Greens treasury spokesman Nick McKim confirmed that the party will waive the bill through the Senate by the week's end.
This ends a three-year deadlock over the measure, which applies an additional 15% tax on earnings for high-balance funds.
Under the revised policy, a total tax rate of up to 30% will apply to balances over $3 million, while a new $10 million indexed threshold will trigger a 40% rate.
Senator McKim urged Treasurer Jim Chalmers to utilise the Greens' balance of power to pursue further hikes, including paring back the 50% capital gains tax discount and reforming negative gearing.
"Labor is standing in front of an open goal," McKim stated, suggesting the budget is a "once-in-a-generation opportunity" to tackle housing inequality.
However, the Self-Managed Superannuation Fund Association has labelled the legislation an "ugly tax," warned of technical "unintended consequences" regarding how balances are calculated.