The Albanese government has finally announced a major retreat on its proposed controversial superannuation changes.

The plan to tax unrealised capital gains has been dumped altogether, and the proposed new $3 million threshold will be indexed, as well as a $10 million threshold that is being added.

Prime Minister Anthony Albanese (currently on a week’s holiday) drove the retreat, which was announced by Treasurer Jim Chalmers. Earlier on Monday the cabinet ticked off on the revamp of the original plan.

Chalmers said he had been working on alterations to his earlier plan for some time. He denied he had been “rolled” by the prime minister. “Of course not,” he said.

“The prime minister and I have had discussions over recent months about finding another way to satisfy the same objectives, and that’s what’s happened here,” he said.

Albanese’s caution on the original superannuation changes is being interpreted as a warning Chalmers will have difficulty getting the prime........

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