Afternoon Update: Labor’s super tax walkback; a climate tipping point; and a surprise conversion to birdwatching

Hello and welcome to Afternoon Update.

Jim Chalmers has announced a spectacular backdown on Labor’s controversial superannuation tax policy just three days after Anthony Albanese insisted his government’s plan remained unchanged.

The original proposal to double the tax rate on superannuation balances above $3m from 15% to 30% faced sustained attack despite only affecting 0.5% of savers. The government now intends to index the threshold up to $10m, scrap its application to unrealised gains and delay the start date until July 2026.

Paul Keating took a swipe at John Howard and Peter Costello while hailing the six super tax changes as a “huge policy achievement”. The shadow treasurer, Ted O’Brien, noted the announcement as a “victory for common sense”, but “humiliating” for Chalmers