The Albanese Government is on a collision course with Australia’s judges if it presses ahead with plans to include judicial pensions in the increased tax on superannuation accounts worth more than $3 million.
Put simply, the Australian Judicial Officers Association (AJOA) thought it had a deal with the government to exclude pensions for any judge who has retired from a federal or territory court, now or in the future. But Treasurer Jim Chalmers seems to be walking back on that deal now that Labor can get the legislation through the Senate with the support of the Greens.
AJOA had argued to former assistant treasurer Stephen Jones that while the pension — 60% of a judges’ salary for life after 10 years of service — is a retirement benefit, it is very different to super. (Treasury calculations are based on a judge retiring at 70 and living till 85).
Many of those judges would have built up a super balance of more than $3 million before they joined the bench. The judicial pension would also count, meaning everything above that $3 million would attract the extra 15% tax.
