In a revelation that’s reigniting a debate over wealth and fairness, the Australian Taxation Office (ATO) has confirmed that 91 Australians earning over $1 million in 2022–23 paid zero income tax.
These high-net-worth individuals collectively claimed $390 million in deductions, with nearly three-quarters of that — $291 million — channelled into tax-deductible charitable donations.
The average donation among the 19 most generous donors reached a staggering $15.4 million. Meanwhile, this elite cohort also claimed $62.8 million in deductions for managing their tax affairs, averaging nearly $691,000 per person.
The data underscores a stark geographic and economic divide.
Australia’s wealthiest taxpayers are concentrated in Sydney’s eastern suburbs — Darling Point, Edgecliff, Rushcutters Bay, and Point Piper — where the average taxable income in postcode 2027 reaches $279,712. These enclaves of affluence contrast sharply with the broader population, where average wages rose just 2.6% to $74,240, while tax bills climbed faster than incomes amid inflation and the end of key offsets.
The Australia Institute’s chief economist, Greg Jericho, argues the findings expose a systemic imbalance. “At a time when we’re debating superannuation tax reform for balances over $3 million, the wealthiest are legally zeroing out their tax bills,” Jericho said.
He attributes this to access to elite tax advisors and legal structures that allow the ultra-wealthy to exploit deductions unavailable to average earners.
The Government’s proposed superannuation reforms — set to double the tax on earnings above $3 million from 15% to 30% — aim to address such disparities.
For global investors, the data offers a dual lens: Australia remains a haven for philanthropic tax strategies, but also a jurisdiction under increasing scrutiny for wealth inequality.
As ESG-conscious capital flows intensify, the optics of tax minimisation — even when legal — may carry reputational risk.
With the Albanese government pushing for broader tax reform, Australia’s fiscal landscape is shifting — and high-net-worth individuals and their advisors may need to recalibrate.
