$49bn noose around country’s neck is making the rich richer and hurting ordinary Aussies

News.com.au - 25/03
Taxpayers will this year foot a mammoth $49 billion bill to help grow the nest eggs of largely wealthy Australians, the latest budget reveals – an “absurd” expense making ordinary people’s lives tougher.

Taxpayers will this year foot a mammoth $49 billion bill to help grow the nest eggs of largely wealthy Australians, the latest budget reveals – an “absurd” expense making ordinary people’s lives tougher.

Social services groups have slammed the spend on overly generous tax perks delivered to property investors, with the projected cost to the public purse ballooning to a new high.

According to the budget papers, the public purse will miss out on $22.7 billion in taxation revenue in 2024-25 due to the capital gains tax (CGT) discount offered to property investors.

On top of that, tax deductions on rental income account for another $26.5 billion in foregone revenue this year.

Treasurer Jim Chalmers’ budget has revealed just how much generous tax perks for property investors cost Australia. Picture: NCA NewsWire / Martin Ollman

As the country’s crippling housing crisis continues, new polling shows the majority of voters have lost faith in either of the major parties to fix the issue and end the severe pain being felt by millions of households.

Advocates say it’s time for winding back negative gearing and gutting the capital gains tax discount to be put back on the agenda as Australia heads to an election.

‘Absurd’ tax breaks must go

The enormity of the budgetary hole left by the CGT discount is double what Treasury boffins projected just last year.

And it’s three times the amount budgeted for four years ago.

Proponents of the discount – which se...
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