It gives the government a week to try and gather the support of crossbench senators in order for it to pass.

To secure its passage, the government needs 39 votes in the 76-seat upper chamber and is relying on the support of just three crossbenchers.

The bill was dropped from the schedule at the last minute on Thursday (6 February), indicating that the government had not managed to secure the three votes it needed in time.

"It’s a sure sign the government knows they don’t have the numbers in the Senate to pass this bill. It was clear from my discussions with Senate crossbench members earlier in the week that their concerns with this legislation run deep," Peter Burgess, SMSF Association CEO, told SMSF Adviser.

"Given the unusual design of this tax and the system constraints of some of the large funds, there is no 'quick fix' to the issue of taxing unrealised capital gains, which is the primary concern of the Senate crossbench. There is still a mountain to climb but it could also be a sign they [the government] haven’t yet given up on getting the legislation passed."

Earlier this week, it was alleged that the government was heavily lobbying crossbenchers to get the bill across the line, even going so far as to pair the bill with a populist measure to try and force its passage.

Burgess said on the matter: “It seems the government is looking to team the Better Targeted Superannuation Bill with a measure that would reduce surcharges on credit card transactions.”

The Council of Small Business Organisations Australia told SMSF Adviser that the credit surcharge measure would negatively impact the small business sector and ultimately consumers would end up paying more for goods and services.

Luke Achterstraat, CEO of COBOA, said he was shocked the government would suggest the measure without consideration as to how small businesses would recoup those lost merchant fees.

“If they immediately banned surcharging, small businesses would be left holding the bill,” he said.

“They need to go back and do the work and see the underlying reason for those fees, which is all about a lack of competition as well as other issues. When I saw the government was trying to do that deal with the Senate crossbench to proceed with the debit surcharge ban I thought it was bizarre and that it would jeopardise the RBA review on this issue, which is currently underway.”