In the 2022–23 financial year, 91 Australians who earned over $1 million each paid no tax, according to new data from the Australian Taxation Office (ATO).
The data also reveals that the country’s top earners are concentrated in Sydney’s affluent eastern suburbs, including Darling Point, Edgecliff, Rushcutters Bay, and Point Piper.
An analysis by the ABC and the Australia Institute found these 91 high-income individuals collectively claimed $390 million in various deductions to eliminate their tax liabilities. Notably, 19 of them made $291 million in tax-deductible charitable donations, averaging $15.4 million per person.
Taxpayers can also claim deductions for managing their tax affairs. Among the millionaire non-taxpayers, $62.8 million was claimed for this purpose — an average of $690,815 each.
Greg Jericho, chief economist at the Australia Institute, says this highlights how Australia’s wealthiest individuals are able to exploit the tax system to completely avoid paying tax — even as reforms to superannuation for those with balances over $3 million are being debated. He attributes this to their ability to hire expensive tax professionals to navigate and minimize their obligations.
