Australia’s 10 most expensive legal tax breaks

Are you helping your clients use them wisely?

According to the Commonwealth Treasury’s Tax Expenditures Statement (2016), these are Australia’s most costly but legal tax breaks:

1. Main residence CGT exemption: $61.5B
2. Concessional tax on super earnings: $16.9B
3. Concessional tax on super contributions: $16.9B
4. CGT discount for individuals/trusts: $9.6B
5. GST exemption – fresh food: $6.9B
6. GST exemption – education: $4.5B
7. GST exemption – health: $4.0B
8. GST exemption – financial services: $3.9B
9. Concessional tax – termination benefits: $2.6B
10. Exemption from interest withholding tax: $2.3B

These tax concessions are not loopholes — they’re part of intentional government policy designed to encourage retirement savings, home ownership, investment, and affordability in essential services.

As accountants and advisors, we have a responsibility to help clients legally and ethically benefit from these concessions while remaining fully compliant.

That’s exactly what TaxFitness empowers you to do:

• Identify legal tax-saving strategies
• Benchmark client performance
• Provide advisory insights backed by data
• Stay aligned with policy and law

It’s not about avoidance. It’s about smart, lawful planning that benefits both your clients and the broader economy.