Cost of tax concessions explodes as money flows into shares, property

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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 Tax CapitalGainsTax

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 amid COVID-19. That has 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

 

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The Morrison Government has given us record debt and higher taxes Facts matter

Holy fuck that smirk makes him one of the most punchable faces in government, and I thought Dutton or Scomo was bad.

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