Concessions for superannuation cost the federal budget almost $50bn a year while rental deductions, much of them for negative gearing, have jumped by more than half in three years, the annual Treasury summary of tax expenditures shows.
The ranking of revenue foregone in 2023-24, released on Wednesday, was headed by many of the usual groups, finding for example that shielding taxpayers’ main residence from capital gains taxes, saved them a combined $47.5bn for the year, up about a third from 2018-19.
Topping the list was concessions for super contributions, which cost the budget $28.55bn, up almost 23% from the previous year. Exemptions for earnings from super was ranked fifth largest at $20.05bn, down about 7% on the previous year.
Benefits for both types of super exemptions were skewed to higher income earners. In 2020–21, 90% of the contributions benefit went to people with above median income, and 30% went to people in the top tenth of taxable income earners.
Negative gearing costs Australia about $27bn a year
There are about 27 million Australians
Every Australian that doesn’t own an investment property is giving $1000 a year to landlords
Benefits for both types of super exemptions were skewed to higher income earners. In 2020–21, 90% of the contributions benefit went to people with above median income, and 30% went to people in the top tenth of taxable income earners.
The biggest takeaway, in my opinion. As always the biggest tax breaks benefit the rich the most.
“But they pay more tax!”, cry the temporarily embarrassed millionaires defending their future socio economic peers.
That’s the whole point of a sliding scale ffs. Everyone should be able to afford the essentials (tax free threshold). If you work harder and earn more money you should be able to keep most of it (lowest tax bracket). But once you’ve got your cake, and eaten it, and are now trying to gobble up everyone else’s cake too you need to have some of that cake withheld to ensure there’s enough for everyone.
Having all these concessions that only the rich get to take advantage of totally poops all over the whole concept.
yeah, but we all know how stupid Australia is now… people here regularly vote against their interests, regardless of how obvious it is.
Negative gearing should only have ever been allowed on new builds, and even then restricted to a maximum of say 10 years.
This is the best summary I could come up with:
The ranking of revenue foregone in 2023-24, released on Wednesday, was headed by many of the usual groups, finding for example that shielding taxpayers’ main residence from capital gains taxes, saved them a combined $47.5bn for the year, up about a third from 2018-19.
The Albanese government’s super concessions changes in its 2023-24 budget – doubling the tax on earnings from balances of $3m or more to 30% – will affect about 0.5% of the population with the full effect from 2027-28 on.
The spread of benefits in 2020-21 showed 80% of the tax reduction for rentals went to those above the median income, while 37% was collected by the top decile of earners, the government said.
The increasing prospects of a second consecutive budget surplus in the 2023-24 year will also likely prompt calls for more cost of living relief.
“With the federal budget facing a long-term structural deficit and big spending pressures looming, curbing these tax concessions should be a priority.
Coates said the super tax breaks, in particular, were more generous than needed as they were originally designed to help people replace or supplement the age pension.
The original article contains 731 words, the summary contains 190 words. Saved 74%. I’m a bot and I’m open source!
