During yesterday’s debate, which was adjourned twice, more MPs spoke against the bill and their concerns over the plan to tax unrealised gains and the absence of indexation.

LNP’s Garth Hamilton highlighted the impact the proposed legislation will have on the farming sector and accused the government of not listening to the concerns of the community.

“The government has been warned and refuses to listen,” he said.

Independent MP Kylea Tink on Wednesday put forward an amendment to the legislation recommending the $3 million threshold be indexed so as not to catch millions of younger Australians who in the future are likely to have super balances over this figure, and the removal of the provision that allows the government to tax unrealised gains.

“One of the purposes of indexing the superannuation cap would be to ensure each generation receives the same benefits and outcomes from the system,” she said.

“The lack of indexation is also incongruent with our current accepted tax principles and I do not understand why the government has, to this point in time, rejected the calls of many to introduce indexation in the legislation. And I fear the omission is deliberate and that the government is seeking to claw back more tax over time while claiming their initial policy affects few.”

Burgess said although there seemed to be a lot of support for the amendment to be included in the final legislation, he was not confident it would be passed by the lower house before the bill was debated in the Senate.

He was in Canberra yesterday again lobbying Senate crossbenchers in the hope that in the final Senate debate, there may be some changes made to the issues of indexation and taxing unrealised gains.

“This legislation will encounter the same opposition in the Senate as it has in the lower house,” he said.

“It will most probably be passed in the Lower House with no adjustment as the government has the numbers. But it was good to hear from those MPs that spoke out against it make reference to the research the SMSFA commissioned from the University of Adelaide about the unintended consequences of this legislation.”

Burgess said once it is passed through the House of Representatives, most probably by the end of this week, the bill will proceed to the Senate.

He added the government will be hoping to get the legislation passed by 30 June so it can be in force by 1 July 2025.

“The amendments that Kylea Tink has put forward on indexation are based on drafting we provided and also mentioned the deeming rate,” he said.

“It is important if any amendments do get through regarding deeming rates it has to be a close proxy for actual taxation earning, which we believe is no more than a 90-day bank rate – if it is any higher than that there will still be unintended consequences.”