Record low interest rates and government stimulus have helped save the economy from the COVID-19 recession but also driven an explosion in the cost of federal tax concessions.
Property prices and share values have soared due to the various government and Reserve Bank programs put in place to safeguard the economy from the impact of COVID-19. That has then driven the large increase in the relative value of the tax concessions around super, the family home and CGT. The exclusion of fresh food from the GST will cost a record $8.4 billion in forgone revenue this financial year while the exclusion of health will cost an all-time high of $7.7 billion.Education costs that are GST-free will cost the budget $5.2 billion while GST-free financial services will cost $3.4 billion.
“Some of the concessions make sense. We want people to save money so we have superannuation, and it’s a similar story for capital gains,” he said. “But in these areas, we are more generous than most other countries.Loading
swrighteconomy “exemption of the family home from capital gains tax (CGT) will this financial year cost a record $64 billion in forgone revenue” It’s not a “cost”. That revenue was never there! Is Labor AlboMP considering CGT for residential properties?
swrighteconomy Didn’t AustralianLabor point this out at the last election?
swrighteconomy Philip Lowe RBA today said government tax policies resulted in house prices to be where they are today…thanks Scott
swrighteconomy The worst part is now that the Lib's spend like Labor, we're going to get a Labor government that will make the NDIS look like chump change.