The Albanese government’s radical plan to double taxes on Australians with more than $3million in superannuation looks dead in the water because it doesn’t have the votes to pass the Senate.

The Greens are opposing the proposal on the grounds that it does not go far enough and independent crossbench senators have also flagged issues of principle with the bill that could result in them blocking legislation.

Treasurer Jim Chalmers has now indicated he would be unwilling to compromise with the Greens to get the bill through before the next election, which is due by May 2025.

‘The Greens want to vote against fairer taxes on people with millions in super,’ he said on Tuesday morning.

Dr Chalmers likened the Greens opposing this bill to the minor party earlier blocking Labor’s Help to Buy and Build To Rent plans.

‘This is housing all over again, with the Greens saying they want fairer taxes then choosing to vote against them,’ he said.

‘They shouldn’t need us to sweeten the deal in order to do the right thing.’

In a confusing signal, Finance Minister Katy Gallagher declared Labor was still pushing ahead with its superannuation plan in the face of continuing Senate opposition.

‘We’re in negotiations to get as much of that through as we can, but that certainly remains Labor policy,’ she told reporters in Canberra on Tuesday.

‘I’m not giving up until the close of bells on whenever we finish this week on getting all of our legislation through.’

The government on Sunday announced it was dropping its misinformation and disinformation bill after the Greens declared their opposition, but it has yet to officially capitulate on its superannuation policy.

Labor early last year announced the government would double to 30 per cent – from 15 per cent – the concessional rate on the top 0.5 per cent of superannuation balances.

Prime Minister Anthony Albanese’s government argued this policy, to double taxes on super contributions, would affect just 80,000 people with more than $3million in retirement savings.

The proposed law also included an unprecedented plan to tax unrealised gains.

This would effectively see Australians pay tax on the increased value of an asset they still owned and had yet to sell if they had superannuation assets above that $3million threshold.

The Labor proposal is radical because individuals are normally taxed on an asset after it has been sold – not before.

This policy, never done anywhere else in the world, would have forced Australians with self-managed super funds to sell things like property or farms.

While European countries have taxed unrealised gains on wealth, they haven’t targeted retirement savings.

The Greens in March last year declared they would oppose Labor’s plan to double taxes on super contributions because they wanted the threshold for the 30 per cent tax rate to kick in at $1.9million with the extra revenue used to boost social security payments.

Teal MPs were opposed to taxing unrealised gains with Allegra Spender, who represents the wealthy Sydney eastern suburbs electorate of Wentworth, working with Canberra-based independent senator David Pocock to stop that policy going though.

Labor’s package was designed to raise $2billion a year in otherwise foregone revenue.

But with the Greens and independent crossbench senators opposed to the bill, Labor could ditch the policy on high super contributions before the next election.

The Coalition was opposed to Labor’s super policies from the start.

The SMSF Association last month called on the Senate to reject Labor’s legislation in full, after the bill passed the House of Representatives.

Chief executive Peter Burgess said Labor’s retirement savings bill would be bad for farmers with self-managed super funds, who would be forced to sell agricultural assets that are tied up in their superannuation.

‘In all likelihood, the fate of this bill now rests in the hands of the Senate crossbench, and we are urging them to listen to the concerns raised by a growing number of constituents,’ he said.

‘Despite all the evidence about unintended consequences that have been presented to the government since this tax proposal was first mooted in early 2023, it seems determined to press ahead with the taxation of unrealised capital gains that will be disastrous for thousands of primary producers and small and family businesses who will be impacted by this tax.’

If Labor proceeds with this bill and seeks a mandate from the people, it would also be facing a negative campaign from the self-managed super fund lobby leading up to an election – echoing what happened in 2010 when Labor proposed a mining tax.