Appendix B: Aggregated superannuation tax expenditure
Table B.1 aggregates the estimates tax expenditures related to superannuation. The tax expenditures identified individually in Table B1 should be understood as part of an integrated system. This system is significantly concessional taken as a whole.
The calculation of the estimates requires projections of contributions, earnings and eligible termination payments (ETPs). The estimates use projections of contributions, earnings and payouts. They assume that tax is collected from superannuation funds in the year in which the contributions and earnings occur.
There have been significant increases in the estimates of the superannuation tax expenditures since the 2006 TES, mainly due to:
- Increases in the base data used to estimate the superannuation tax expenditures;
- An expansion in the scope of the estimates; and
- Revised methodology.
Table B1: Aggregated tax expenditures for funded superannuation(a)(b)
- The concessional taxation of unfunded superannuation (C7) and the concessional treatment of non-superannuation termination benefits (C3) are reported as separate tax expenditures and are not included in this table.
- Totals may not sum due to rounding.
- Includes the revenue impact of the surcharge on superannuation contributions for high income earners which applied to some contributions for 2004-05 and earlier years.
- From 2003-04 the line shows the impact of the government co-contribution being untaxed.
- Indeterminate, but likely to be small or insignificant.