Superannuation tax breaks will cost budget $52bn, almost matching Australia’s age pension

Research found that superannuation tax breaks are now in the top three expenditure programs by cost in Australia’s federal budget. Photograph: Chameleons Eye/REX/Shutterstock

Tax breaks for superannuation will cost the federal budget $52.5bn this financial year, almost as much as the aged pension, according to a new analysis.

A research paper by the Australia Institute argues that since super tax concessions cost almost as much as the $55.3bn spent on the pension, Australia has “two classes of state-funded retirees in Australia”.