Statement 5: Revenue (Continued)
This attachment contains an overview of the cost of tax expenditures provided to taxpayers through the tax system.
Tax expenditures provide a benefit to a specified activity or class of taxpayer. They can be delivered as a tax exemption, tax deduction, tax offset, reduced tax rate or deferral of tax liability. The Government can use tax expenditures to allocate resources to different activities or taxpayers in much the same way that it can use direct expenditure programs.
The data reported in this appendix are consistent with the data reported in the 2011 Tax Expenditures Statement published in January 2012. The data do not include the impact of decisions in this Budget on tax expenditures.
Care needs to be taken when analysing tax expenditure data: see the 2011 Tax Expenditures Statement for a detailed discussion.
Table F1 contains estimates of total tax expenditures for the period 2008‑09 to 2015‑16.
Table F1: Total measured tax expenditures
Table F2 shows estimates of large measured tax expenditures for 2011‑12.
Table F2: Large measured tax expenditures in 2011‑12
| Tax expenditure | Estimate $m | |
|---|---|---|
Large positive tax expenditures |
||
| E6 | Capital gains tax main residence exemption — discount component | 20,000 |
| E5 | Capital gains tax main residence exemption | 15,500 |
| C5 | Superannuation — concessional taxation of employer contributions | 14,850 |
| C6 | Superannuation — concessional taxation of superannuation entity earnings | 14,000 |
| H29 | GST — Food — uncooked, not prepared, not for consumption on premises of sale and some beverages | 5,900 |
| E17 | Capital gains tax discount for individuals and trusts | 4,700 |
| H19 | GST — Health; medical and health services | 3,050 |
| H16 | GST — Education | 2,900 |
| H2 | GST — Financial Supplies; input taxed treatment | 2,450 |
| A43 | Exemption of Family Tax Benefit, Parts A and B, including expense equivalent | 2,060 |
| C3 | Concessional taxation of non‑superannuation termination benefits | 1,450 |
| B16 | Exemption from interest withholding tax on certain securities | 1,440 |
| A22 | Exemption of 30 per cent private health insurance rebate, including expense equivalent | 1,320 |
| H3 | GST — Financial Supplies; reduced input tax credits | 1,290 |
| D14 | Philanthropy — Exemption for public benevolent institutions (excluding public and not-for-profit hospitals) | 1,260 |
| D18 | Application of statutory formula to value car benefits | 1,220 |
| A21 | Exemption from the Medicare levy for residents with a taxable income below a threshold | 1,200 |
| F7 | Concessional rate of excise levied on aviation gasoline and aviation turbine fuel | 1,060 |
| H11 | GST — Imported services | 1,050 |
| B93 | Statutory effective life caps | 1,040 |
| D11 | Philanthropy — Exemption for public and not‑for‑profit hospitals and public ambulance services | 1,000 |
| A32 | Senior Australians' and Pensioners' Tax Offset | 960 |
| C8 | Superannuation — deduction and concessional taxation of certain personal contributions | 960 |
| A65 | Philanthropy — Deduction for gifts to deductible gift recipients | 910 |
| B4 | Income tax exemption for local government bodies | 830 |
| H6 | GST — Water, sewerage and drainage | 810 |
| B105 | Research and development — Research and Development Tax Concession | 780 |
| B95 | Deduction for capital works expenditure | 735 |
| A41 | Exemption of certain income support benefits, pensions or allowances | 670 |
| B108 | Small business and general business tax break | 660 |
| H10 | GST — Importation Threshold | 640 |
| H5 | GST — Child Care Services | 620 |
Large negative tax expenditures |
||
| F24 | Customs duty | ‑2,460 |
| F11 | Higher rate of excise levied on cigarettes not exceeding 0.8 grams of tobacco | ‑1,760 |
| A30 | Flood and cyclone reconstruction levy | ‑1,500 |
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