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ABC News
a day ago
- Business
- ABC News
Millionaires who pay no tax and richest and poorest postcodes revealed in ATO tax stats
There were 91 Australians who earned more than $1 million in total income yet paid no tax in 2022-23, according to newly released data from the Australian Taxation Office (ATO). The figures also show Australia's highest earners live in Sydney's eastern suburbs, taking in Darling Point, Edgecliff, Rushcutters and Point Piper. Analysis of the data by the Australia Institute and the ABC shows overall, these 91 millionaires claimed $390 million worth of different deductions to reduce their tax bills to zero. The vast bulk of this was the 19 of them who made $291 million in donations to tax-deductible charities, or an average of about $15.4 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-tax-paying high-earners claimed $62.8 million in deductions for managing their tax affairs — an average of $690,815. The Australia Institute's chief economist, Greg Jericho, says this shows the nation's wealthiest and richest can use the tax system to reduce tax bills to zero "at a time when we are debating changes to superannuation taxation for the small number of people with balances over $3 million". He says this happens because the wealthy can pay "high-priced tax lawyers and accountants" to do it. The data also shows 2.3 million Australians declared rental income in 2022-23, with about 71 per cent of landlords owning only one investment property (just over 1.6 million). About 19 per cent (423,000) own two properties, around 6 per cent (130,000) own three properties, while around 4 per cent of landlords (47,000) own four properties. There are very few landlords (18,837) with five investment properties and a similarly small group with six or more (19,389). Overall net rental income for 2022–23 was $1.6 billion, down from $6.0 billion in 2021–22. More landlords made profits than losses in 2022–23. The average total net rent median was $52 and the average was $696. Of about 1,130,000 landlords who made a loss (were negatively geared), the median loss was $5,487 and the average was $9,346. The ATO figures show the country's highest-earning postcodes were in Sydney, with seven suburbs making up the top 10. The postcode with the highest average taxable income ($279,712) was in Sydney's eastern suburbs — postcode 2027 — which takes in Darling Point, Edgecliff, Rushcutters and Point Piper. That was followed by Double Bay (postcode 2028) and Woollahra (2025). Melbourne's Toorak and Hawksburn — postcode 3142 — came in fourth place, then we jump back to Sydney's eastern suburbs, with Vaucluse, Watsons Bay, Dover Heights, Rose Bay North and HMAS Watson (2030) coming in fifth place. But those living in NSW were also among the nation's lowest average income earners. The lowest-income postcodes were in areas with higher numbers of university students. The area taking in students studying at The University of Newcastle's main campus at Callaghan, postcode 2308, earned an average taxable income of $20,878. The next poorest postcode was 2052, taking in the University of NSW area, with an average taxable income of $20,892. Since reporting started in 2010–11, surgeons have remained the highest-paid occupation, with 4,247 individuals reporting an average taxable income of $472,475 in 2022–23. This was followed by anaesthetists: 3,658 individuals in this category earned an average taxable income of $447,193. The third-highest-paid occupation was "financial dealers", of which there were 5,147 with taxable incomes of $355,233. The poorest paid jobs were in the "personal careers and assistants" category, earning an average taxable income of $22,533. This was followed by "fast food cooks" earning $22,722 and "apprentices and trainees in hospitality" earning $25,358. More than 16 million Australians lodged tax returns in 2022–23. The ATO's data showed 10.3 million individuals claimed a total of $28.3 billion in work-related expenses — an average of $2,739 per person. The average superannuation account balance increased from $164,000 in 2021–22 to $173,000 in 2022–23. Net tax from companies for the 2022–23 income year increased by 9.2 per cent to $140 billion (compared to $128 billion in 2021–22). The biggest company tax liability came from the mining industry (39 per cent of company net tax) with the industry's net tax growing from $42.3 billion to $54.4 billion. The luxury car tax increased by 17.9 per cent to $1,153 million.
Canberra Times
20-06-2025
- Business
- Canberra Times
Do you have $3 million in super? Me neither. These changes will actually help you
Do you have $3 million in super? Me neither. It is estimated that the changes will only impact a tiny fraction of the Australian population, around 80,000 people. That's fewer people than can fit in the MCG. In fact, 99.5 per cent of Australians currently do not have more than $3 million in super. According to ATO data, the average super balance is a mere $182,000 for men and $146,000 for women. Greg Jericho, chief economist at the Australia Institute, crunched the numbers and found that around 97 per cent of people currently in the labour force will never have $3 million in superannuation, no matter how hard they work for their entire lives. Even if a young person works their entire life on the full-time average wage, with no time out of the workforce for kids or illness, they will never accumulate $3 million in super. Not surprising when you consider the median super balance for women aged 60-64 is less than $160,000, meaning half of Australian women have less super than that (half of Australian men the same age have just $211,996 or less).
The Age
27-04-2025
- Business
- The Age
Which jobs pay enough to save for a Sydney house deposit
Single workers and many high earning couples would have largely found it impossible to save a Sydney house deposit over the past decade as property prices soared out of reach, shifting the goalposts for first home hopefuls. Not one worker buying alone in the 17 occupations - from childcare workers to surgeons - analysed by left-leaning think tank The Australia Institute would have saved enough from June 2015 to December 2024, to reach a 20 per cent deposit for the median-priced Sydney house. A central issue for the upcoming election is housing affordability, with both major parties announcing policies. Home buying hopefuls having less than a 20 per cent deposit usually require lenders' mortgage insurance, or a government guarantee to waive the LMI - set to be expanded to more first home buyers under a Labor plan. Experts say having a 20 per cent deposit helps first home buyers avoid a situation where they lose their job while property prices are falling and need to sell their home for less than the loan, leaving them with a debt. A single checkout operator would be most challenged getting to this, according to the data. If they began saving for a 20 per cent deposit ($159,925) for a median priced Sydney house in mid-2015 ($799,625), they would have $33,178 by December 2024. But because the median house price in Sydney had by then risen to about $1.4 million, for which a deposit is $283,940, they would still be short $250,762. 'For people living in Sydney, saving for a home has become almost an impossibility unless you either have a very high-paying job, or you're married or a partner with someone with a very high-paying job,' Greg Jericho, chief economist at The Australia Institute said.
Sydney Morning Herald
27-04-2025
- Business
- Sydney Morning Herald
Which jobs pay enough to save for a Sydney house deposit
Single workers and many high earning couples would have largely found it impossible to save a Sydney house deposit over the past decade as property prices soared out of reach, shifting the goalposts for first home hopefuls. Not one worker buying alone in the 17 occupations - from childcare workers to surgeons - analysed by left-leaning think tank The Australia Institute would have saved enough from June 2015 to December 2024, to reach a 20 per cent deposit for the median-priced Sydney house. A central issue for the upcoming election is housing affordability, with both major parties announcing policies. Home buying hopefuls having less than a 20 per cent deposit usually require lenders' mortgage insurance, or a government guarantee to waive the LMI - set to be expanded to more first home buyers under a Labor plan. Experts say having a 20 per cent deposit helps first home buyers avoid a situation where they lose their job while property prices are falling and need to sell their home for less than the loan, leaving them with a debt. A single checkout operator would be most challenged getting to this, according to the data. If they began saving for a 20 per cent deposit ($159,925) for a median priced Sydney house in mid-2015 ($799,625), they would have $33,178 by December 2024. But because the median house price in Sydney had by then risen to about $1.4 million, for which a deposit is $283,940, they would still be short $250,762. 'For people living in Sydney, saving for a home has become almost an impossibility unless you either have a very high-paying job, or you're married or a partner with someone with a very high-paying job,' Greg Jericho, chief economist at The Australia Institute said.
The Guardian
26-03-2025
- Business
- The Guardian
Australia politics live: Dutton to promise to halve fuel excise for a year; ‘major breach' of NSW court files
Show key events only Please turn on JavaScript to use this feature Greg Jericho is writing about the budget today and he argues that Labor's tax cuts have left the opposition leader and shadow treasurer with limited options. He applauds Jim Chalmers's decision to pass more of the pie to lower earners but says that more could have been done to help people on Jobseeker, which remains well below the poverty line. He concludes: Tax is now a major part of both the ALP's and LNP's election campaigns. And many of the other choices that would help the unemployed or reduce tax breaks to the rich will be likely left for someone else to worry about. Read his full column here: Share Peter Dutton is expected to promise tonight that the coalition will halve the fuel excise for 12 months if elected, AAP reports. The policy would lower the rate on petrol and diesel from about 50 cents to 25 cents per litre. The coalition voted against the tax cuts that passed parliament on Wednesday, saying they were too little, too late for struggling Australians. Taxpayers will save up to $268 on their tax bills in 2026/27 and up to $536 every year after under Labor's proposal. 'What's obvious here is that a 70-cent-a-day tax cut in 15 months' time is just not going to help families today who are really suffering,' Dutton said. 'We do want to help families address the cost-of-living crisis, we do want to address the energy crisis.' The opposition voted against Labor's tax cuts, with shadow treasurer Angus Taylor chastising Labor for producing a budget 'for the next five weeks, not the next five years,' referring to the imminent election campaign. But he was attacked by the treasurer for voting against tax relief. Taylor didn't rule out larger tax cuts being offered by the coalition. Share Good morning and welcome to our live politics blog. I'm Martin Farrer, bringing the best of the early stories before Emily Wind guides you through the morning. The setpiece of the day will be Peter Dutton's budget reply at 7.30 this evening in which he is expected to try to outflank Anthony Albanese on cost-of-living relief. The Coalition voted against Labor's income tax cuts yesterday and the opposition leader is preparing what has been called a 'very significant announcement' in tonight's speech. It appears that it's going to be a promise to halve the fuel excise for 12 months, which would see about 25c come off the price of a litre of petrol. We will have full coverage of the buildup to his address and the rest of the budget fallout. Despite Sarah Hanson-Young's best efforts yesterday when she waved a dead salmon in the Senate, the legislation to protect the Tasmanian salmon industry was passed through parliament last night. Coalition senators joined Labor to vote in favour of the bill after the government speeded the process by guillotining the debate to bring on a vote. More coming up. Specialist cybercrime detectives are investigating how 9,000 documents from New South Wales's online court system were leaked into the public domain. NSW police's cybercrime squad was alerted on Tuesday to the breach of the state's Online Registry website, which provides access to civil and criminal court cases. Police said the documents include sensitive material such as apprehended violence orders and affidavits. More to follow. Share
