Tax breaks for housing, shares and superannuation could all be scrapped, and GST could apply more broadly if the Abbott government listens to the final recommendations of the financial systems inquiry.

The report by former Commonwealth Bank chief executive David Murray suggests a raft of tax breaks distort borrowing, including negative gearing, capital gains tax concessions and dividend imputation.

The Murray inquiry recommends scrapping tax breaks for property. Credit:Louie Douvis

Mr Murray takes particular aim at tax breaks for housing, saying negative gearing and capital gains tax exemptions on the family home tends to encourage leveraged and speculative investment and is a potential source of systemic risk for the financial system and the economy.

Mr Murray pointed out capital gains concessions were a tax subsidy for the wealthy and reducing them would lead to a more efficient allocation of funding in the economy.