Ninety millionaires paid no tax in 2023–24. New ATO data shows why tax reform matters

In 2023-24, according to the ATO, 90 Australians who earned more than $1m in income paid no tax.

The annual release of the ATO taxation statistics provides researchers with a deluge of data on incomes and tax by age, location, occupation and gender.

This year’s data covers the 2023-24 financial year and reveals that 91 people who earned more than $1m in income were able to reduce that total to below the $18,200 tax-free threshold. Of that number, only 1 had to pay any net tax (and that poor dear had to hand over a whopping $769 to the tax office):

The data reveals that those millionaires who avoided paying any tax spent vastly more on average “managing their tax affairs”.

But the figures also reveal that the changes in the budget targeting the reductions in the discount for capital gains tax and trusts are very much affecting the richest Australians.

While those earning less than $150,000 make up nearly 90% of all Australians earning an income, they account for 33% of all dividends, 35% of all income from non-primary trusts and just 21% of all capital gains:

By contrast, millionaires, who account for just 0.2% of all individuals earning an income, accounted for 26% of dividends, 19% of trusts incomes and 38% of all capital gains.

Little wonder that the powerful vested interests are running loud fear campaigns against the changes to the capital gains tax discount.

The changes in the budget sought to redress some of the imbalance in the way income is taxed – salary and wages are taxed much higher than passive incomes from investments such as shares and property.

The latest tax stats show that doing so will improve equality – the tax system has for too long been geared toward the wealthiest.