Treasurer Jim Chalmers calls a complete overhaul of his planned changes to superannuation tax concessions a “tweak”. Even Shane Warne would have struggled to spin a ball that far.

In the face of a big pushback to his plans to impose an additional 15 per cent tax on income made on super funds with balances of more than $3 million, Chalmers has been forced into an embarrassing political retreat.

Hands up for Jim Chalmers’ policy reverse ferret.Credit: Alex Ellinghausen

First announced in 2023, Chalmers’ plan was described as a “modest” impost on 0.5 per cent of the population. But that just happened to be the nation’s wealthiest, most politically connected residents.

His biggest assault was to be on unrealised gains, effectively the lift in the paper value of assets before the owner sells them, in what would be a huge departure from the way income in this nation is taxed.

He was also not going to index the $3 million threshold, effectively ensuring young people today would eventually get caught up in his planned tax net.

Both key elements are now gone. That’s not a tweak – that’s a wholesale renovation.

Now, only realised gains will be taxed,........

© The Sydney Morning Herald