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

New analysis calls for major changes including restrictions on concessions as the country risks having ‘two classes of state-funded retirees’

• Get our morning and afternoon news emails, free app or daily news podcast

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”.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup