Cost of negative gearing and other rental deductions soaring, Australian Treasury data reveals
Cost of negative gearing and other rental deductions soaring, Australian Treasury data reveals
The latest ranking of revenue foregone shows the usual suspects topping the list
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.
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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.