ANALYSIS: A $50b reason to target super concessions, but could property tax breaks be next?
Independent economist Chris Richardson notes that the top 20 per cent of personal taxpayers pay around 60 per cent of all personal income tax, and almost half of adult Australians don't earn enough to pay income tax.
"You should expect high-income earners to account for a big proportion of most of the items on this list. It would be unusual if they didn't."Treasury's data shows housing tax breaks cost more in forgone revenue than superannuation tax concessions do. It is estimated that around 2.4 million people claimed $51.3 billion of rental deductions in 2019–20, resulting in a total tax reduction of $18.6 billion.
Work-related expense deductions are also a big area of forgone revenue. Treasury says about 9.8 million individuals claimed $22.6 billion of work-related expense deductions in 2019–20, resulting in a total tax reduction of $8.3 billion.Dr Richardson says, while housing tax breaks cost more in foregone revenue, the political cost of scaling back negative gearing and CGT discounts for the wealthy may be greater.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Liberal MPs break ranks to back Jim Chalmers’ discussion on superannuation reformAngus Taylor says Coalition will fight any changes but Tasmanian MP Bridget Archer says we should not ‘shy away from having a conversation’
Read more »
Voters want a ‘fair and stable’ superannuation system, says teal MP Allegra SpenderWATCH LIVE: Prime Minister Anthony Albanese and Treasurer Jim Chalmers to speak after a report shows super tax breaks cost $50b per year. Follow updates live.
Read more »
Almost 40% of superannuation tax concessions flow to top 10% of earners, tax statement showsTreasurer Jim Chalmers says analysis will ‘help increase public awareness and inform debate about the fairness and efficiency of the tax system’
Read more »
Treasurer caps super tax breaks for multi-million-dollar accountsTreasurer Jim Chalmers will double the tax rates paid by Australians with superannuation account balances worth more than $3 million, in a move he says is about budget sustainability and equity.
Read more »
RBA board resignations a 'good thing', says ChalmersThe Treasurer has welcomed an upcoming shakeup of the Reserve Bank board after two members indicated they were 'prepared to not be considered for further reappointment'.
Read more »