Australian news and politics live: Treasurer announces big changes to superannuation tax plans

Deputy Opposition Leader Ted O’Brien welcomed Treasurer Jim Chalmers’ announcement of sweeping changes to the Government’s superannuation tax plans, but warned of a looming “black hole” in the Budget.

“I welcome today’s decision, to dump a tax which was always super big and super bad,” Mr O’Brien said.

“Now the Treasurer has to explain where he is going to get $4 billion, to plug the black hole that now exists in the Budget.

“Today’s decision creates that black hole. At this stage, all we know is the Treasurer will go after other people with higher taxes, or he will just throw it on the national credit card and leave it to the next generation of Australians to pay off.”

Hamas is set to release dozens of hostages it has been holding in Gaza for the last two years, in exchange for almost 2000 Palestinian detainees and prisoners, under the terms of the Israel-Hamas ceasefire.

Twenty of the 48 hostages who remain in Gaza are believed to be alive.

Most of the living hostages being released were abducted from the site of the Nova Music festival near Kibbutz Reim in southern Israel.

Read the full details and names here.

Israel and Hamas are soon expected to begin an exchange of hostages as part of a ceasefire agreement brokered last week by international mediators.

Along with the exchange of hostages and prisoners, and an end to the fighting that has devastated the enclave over two years, the deal also calls for a major influx of aid into the Gaza Strip, which has been gripped by a severe humanitarian crisis.

The agreement followed indirect negotiations between Israel and Hamas that were mediated by Egypt, Qatar, Turkey and the United States, and is based on a plan presented by Donald Trump in late September.

Many details remain scarce, and the answers to some of the most sensitive questions — like whether Hamas will disarm — remain unclear.

Read the full explainer here.

Paul Keating has backed Jim Chalmers’ backdown on the planned taxation of unrealised capital gains in multimillion-dollar superannuation accounts, saying the changes should give people peace of mind.

The former PM said the plans to lift the taxation rates on earnings of balances greater than $3 million fixed what had become a “tearaway” system after John Howard and Peter Costello removed limits on concessional rates.

“The stumbling block has been the policy difficulty and departmental advice that this could not be done – other than by taxing unrealised values – that is, taxing increments to value whether such value was realised or otherwise,” Mr Keatin said in a statement.

“The Treasurer’s success in working through and resolving this impasse will now mean that superannuation accumulations will be successfully taxed but taxed only on a basis of realisation, but more than that, taxed at a new limit and at a higher rate, restoring much needed equity following the Howard/Costello rampage of 2007.

“It is reform of a kind that shares substance with necessity. Necessity that every government since 2007 has conveniently overlooked or simply regarded as too difficult.”

The fighting between Israel and Hamas has stopped. But whether the war between Israel and Hamas has ended is unclear.

Prime Minister Benjamin Netanyahu has insisted Israel would not agree to stop attacking Gaza until Hamas is disarmed and removed from power.

On Friday he reiterated the demand, and asserted the prospect of annihilation prompted the terrorist group to fold in negotiations overseen by the Americans, Egyptians and Qataris.

“Hamas agreed to the deal only when it felt the sword resting on its neck and it is still on its neck,” Mr Netanyahu said in a televised speech.

“Hamas will be disarmed and Gaza will be demilitarised. If this is achieved the easy way, so much the better. And if not, it will be achieved the hard way.”

Read Aaron Patrick’s analysis here.

Mr Chalmers said introducing the new tax thresholds was about “making superannuation tax concessions sustainable”.

“This is a difficult change that will raise billions of dollars,” Mr Chalmers told reporters.

The start date of the policy has been pushed back until mid-2027, after originally being planned to be introduced this year when first announced two years ago.

Mr Chalmers says he has had constructive initial talks with Greens Leader Larissa Waters about the proposed changes but wouldn’t speculate if the minor party would support them.

Another change set to come into force will be two thresholds for tax concessions.

The first $3 million and the second $10 million.

“For superannuation earnings on super balances between $3 and $10 million, the rate remains 30per cent. The rate for over $10 million uh becomes 40 per cent,” Mr Chalmers said.

“So, this is still a concessional tax arrangement, but it’s better targeted.”

“It will still only impact less than half a percent of Australians, with the updated years and take into considerations earnings, this means about 90,000 Australians next year will have more than $3 million in their super and about 8,000 will have more than $10 million.

“You’d be aware in recent weeks and months that people have been recommending a cap to us for super. This second threshold at $10 million is really instead of going down that path.”

Treasurer Jim Chalmers has outlined a sweeping range of changes to the government’s superannuation tax plans that he says will make the system “fairer from top to bottom”.

It includes increasing the low income superannuation tax offset from $500 to $810 and raising the eligibility from $37,000 cut off $45,000 in 2027 to coincide with the government’s third tax cuts.

“The total number of eligible Australians for the LISTO (Low Income Super Tax Offset) will become 3.1 million and by one realistic calculation it means about an extra $15,000 at retirement.”

Read the full story.

Twenty Israeli hostages held by Hamas are expected to be released early on Monday local time, ahead of a visit by Donald Trump.

They are expected to be freed in two stages from about 4pm AEDT, which is earlier than first floated.

Hamas and other factions will first transfer the 20 hostages who are still alive to the International Committee of the Red Cross, possibly releasing them from multiple points inside the Gaza Strip, officials said.

The ICRC will then hand the hostages over to Israeli authorities, while “later in the day, we are expecting to receive the bodies of those who have been murdered in captivity,” an Israeli military official said, speaking on the condition of anonymity so he could freely discuss the sensitive details of the exchange.

Read more

Pauline Hanson says rogue senator Lidia Thorpe’s actions at pro-Palestine rallies is tantamount to ‘treason and terror’.

The One Nation leader has been on the offensive in her letter to Federal Police Commissioner Krissy Barrett, calling on her to investigate Ms Thorpe’s actions.

“I am sickened by weak politicians and the continued inaction of authorities who pretent Senator Thorpe’s actions have no bearing on the Australian public,” Ms Hanson said.

“Senator Torpe’s inciteful remarks are both a threat to ublic order and community safety. I would argue that they are an act of treason and terrorism and shoild be thoroughly investigated by the Federal Police.”

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