The top 10 per cent of households get 27 per cent of the benefit, which was an almost identical proportion of the benefit going to the top 10 per cent by income (28 per cent). [...] A larger proportion of those at the bottom of the wealth distribution got a benefit from negative gearing than those at the bottom of the income distribution. [...] Rich men and tax concessions 24 Appendix A The estimates in the paper for the value of negative gearing, capital gains tax, superannuation tax concessions and franking credits were developed within the ANU PolicyMod model, a microsimulation model of the Australian tax and transfer system. [...] Cost and distribution of negative gearing and the CGT discount The Australia Institute commissioned modelling from the National Centre for Social and Economic Modelling (NATSEM) to assess the distribution of benefits from negative gearing and the CGT discount, as well as how changes to these tax breaks would affect households of different income levels and age groups. [...] The difference is that Treasury includes the CSG discount on both individuals and trusts while NATSEM only includes the impact on individuals.2 While exact estimates will vary, it is clear that these tax breaks represent a significant amount of revenue foregone by the federal government and that the benefits of the tax breaks overwhelmingly accrue to the highest income households.
- Pages
- 44
- Published in
- Australia
Table of Contents
- Cover letter - Everybodys home commission into the housing crisis.pdf (p.1) 1
- P911-Income-wealth-an-gender-distribution-of-tax-concessions-WEB.pdf (p.2-28) 2
- Summary 4
- Introduction 8
- Distribution of households 9
- Negative gearing 11
- Negative gearing by income 11
- Negative gearing by wealth 12
- Negative gearing by gender 13
- Superannuation tax concession 15
- Superannuation tax concessions by income 15
- Superannuation tax concessions by wealth 16
- Superannuation tax concessions by gender 17
- Capital gains tax discount 19
- Capital gains tax discount by income 19
- Capital gains tax discount by wealth 19
- Capital gains tax discount by gender 20
- Excess franking credits 22
- Excess franking credits by income 22
- Excess franking credits by wealth 23
- Excess franking credits by gender 24
- Main beneficiaries of tax concessions 25
- Implications of the four tax concessions 26
- Conclusion 27
- Appendix A 28
- Top-Gears-How-Negative-Gearing-and-CGT-benefits-top-10-per-cent.pdf (p.29-41) 29
- Who-really-benefits-from-negative-gearing_0.pdf (p.42-44) 42
- Negative gearing primarily benefits high income households 42
- Young are the biggest losers from negative gearing 43
- Liberal held electorates the biggest winners from negative gearing 43
- Methodology 44
