Super tax breaks costing $45bn a year are ‘inheritance schemes’ for Australia’s rich, new report says

Two-thirds of super tax breaks go to the top 20% of income earners who typically are already saving enough for retirement, a report from the Grattan Institute says. Photograph: Flashpop/Getty Images

The Albanese government could save the budget billions of dollars by winding back generous superannuation benefits that effectively produce “taxpayer-funded inheritance schemes” for the wealthy, a new Grattan Institute report argues.

The “super savings” report says such tax breaks now cost $45bn a year, or 2% of GDP, and will soon exceed the age pension costs. Two-thirds of the breaks go to the top 20% of income earners who typically are already saving enough for retirement.