Cover Photo by David Peterson
102 millionaires paid no tax and the richest and poorest postcodes and occupations revealed
June 17, 2024
Excerpts from Article by Nassim Khadem, for ABC News
See the full and original post here.
More than 100 Australians earned more than $1 million in total income yet paid no tax in 2021–22, while Australia’s highest earners live in Double Bay, according to newly released data from the Australian Taxation Office (ATO).
In its latest annual Taxation Statistics, data extracted from tax returns reveals the number of people who earned more than $1 million but paid no tax has climbed to 102 in 2021–22, up from 66 a year earlier.
Analysis of the data by the Australia Institute and the ABC shows this cohort of affluent taxpayers earned on average $3.8 million each.
Overall, these 102 millionaires claimed $279 million worth of different deductions to reduce their tax bills to zero.
The vast bulk of this was $240 million in donations to tax-deductible charities, or an average of about $2.4 million each.
Using a tax agent to manage tax affairs is also an allowable tax deduction for all taxpayers, meaning some of those who earned more than $1 million but paid no tax claimed these expenses.
This group of non-taxpaying high-earners claimed deductions of $201,000 on average for managing their tax affairs.
The Australia Institute’s senior economist, Matt Grudnoff, says if the federal government wants to raise more revenue, “then it doesn’t necessarily need to increase taxes, it just needs to crack down on tax concessions and close tax loopholes”.
“Recently we have seen the controversy around the big consultancy firms and how they go to enormous effort to find and exploit the tax system for their rich clients,” he said.
“We have seen the wealth of the richest in Australia increase dramatically since the pandemic. Australians expect that everyone should pay their fair share. This is particularly important during a time when many people are struggling to pay the rent or the mortgage, pay their bills, and put food on the table.”
— Matt Grudnoff, The Australia Institute
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