Months of mounting internal pressure including from Labor legend Paul Keating has forced Treasurer Jim Chalmers to overhaul his plans to lift tax on the superannuation accounts of wealthy Australians while setting up a battle with the Greens in the Senate.

After constantly pushing back at suggestions he would radically change his 2023 budget announcement, Chalmers on Monday revealed the government would establish a 40 per cent tax rate for earnings on super balances above $10 million, while earnings on balances above $3 million will be taxed at 30 per cent.

Plans to tax unrealised gains - the increase in the paper value of unsold assets - at 30 per cent have been ditched along with a decision not to index the $3 million threshold with inflation or wages growth.

The low-income super tax

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