Capital gains tax breaks cost the most but Chalmers targets super

Phillip Coorey and Michael Read

Updated Feb 28, 2023 – 12.09pm, first published at 12.00pm

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The Albanese government has stepped up its push to rein in what it says are unsustainable tax concessions, and the release of new data shows tax breaks on superannuation earnings and contributions will amount to $48.2 billion this financial year.

This number is dwarfed by the various capital gains tax exemptions, which, between them, will total $71.7 billion for the year. This includes $48 billion on CGT exemptions for the family home, and another $23.7 billion in revenue foregone on CGT discounts for individuals, such as property investors, and for trusts.

Phillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.