Aussie millionaires avoid $400m in tax despite a combined earnings of more than $1b, ATO data shows

Dozens of Australians who collectively earned more than $1 billion paid not a penny in tax last year, according to data from the Australian Revenue Service.

The 66 millionaires were able to evade their tax obligations through a series of loopholes used by their highly trained accountants.

The millionaires earned $219,000 in bookkeeping fees — a fee that was also tax-deductible.

The ATO data showed that the median income of the wealthy tax evaders rose from $3.5 million between 2019-2020 to a whopping $14.5 million each last year.

Australia Institute senior economist Matt Grundoff said the loopholes helped millionaires pay more than $400 million in taxes.

‘If they had actually paid taxes, they would have paid more than $400 million in taxes’ Mr Grundoff told 9News.

“We need to be vigilant and close these tax loopholes.”

Nearly half of the ATO’s revenue came from individual income tax returns, with the average income nationwide being $65,000 and the average Aussie paying more than $11,000 in taxes.

The data also showed that surgeons were the highest paid profession in Australia, with an average income of $457,000.

Double Bay in Sydney’s Eastern Suburbs was named as the highest income postcode.

The data also showed that Australians typically earn six-figure salaries in jobs that do not require a university degree.

The occupations with average incomes above $100,000 include detectives, machinists, diesel mechanics, crane operators, auctioneers and yard workers.

Someone with a six-figure salary is now among the 44.5 percent or 6,736,313 taxpayers in the $45,000 to $120,000 category where they pay the federal government 32.5 dollar cents on their earnings.

They fall in the same category as someone with a median taxable income of $68,289, which is slightly above the national median income of $65,000, but below the median full-time salary of $94,000 as measured by the Australian Bureau of Statistics.

Police detectives are typically paid $122,732 with men earning $126,791 and women earning $109,772.

Those who work in law enforcement can earn a degree in police work and often require a college degree to become a detective, depending on the state.

But those in blue can also take vocational training to join the force and move up the ranks.

Station managers were well paid with an average taxable income of $113,579, while train examiners had an average taxable salary of $114,929 in an occupation that required vocational education and training in railroad safety.

Railroad signal operators are typically paid $119,915, while train drivers are paid $127,932 for a job that requires a Certificate IV in Train Driving.

Diesel engine mechanics are also typically paid six-figure salaries with an average income of $100,105, which is significantly higher than $67,147 for a garage mechanic.

Unlike mechanics who work in suburban garages, diesel mechanics often work on mine sites to repair and maintain large dump trucks in an industry that pays well.

This profession that operates trucks and buses requires a Certificate III in Mechanical Technology for Heavy Duty Vehicles or a Certificate III in Diesel Engine Technology for Automotive.

Those who use the heavy machinery are well paid with crane operators being paid $108,073, in a hazardous job that requires a Heavy Rigid Truck Permit and a Certificate III in Construction Crane Operations.

Miners are also well paid, with an average taxable income of $125,856, compared to paper mill operators with $102,053.

Wharf workers unloading imported cargo in Australia’s ports earn $102,840, while security consultants earned an average of $107,119.

Those in this role offer and must have advice on design features to repel intruders a Certificate IV in Security and Risk Management.

Stock and station auctioneers, who bid for livestock such as cattle, typically earned $113,459.

This role requires auctioneer accreditation in the state where they practice, along with a station agent license.

Real estate managers earned an average of $124,276, in a profession that required a state license and a Certificate IV in Real Estate Practice.

Another job advising investors on home buying typically doesn’t pay six figures unless a man does it.

Male real estate consultants had an average salary of $112,720, compared to $69,953 for women filling the same role, bringing the overall average for the two genders to $90,213.

It was a similar story for clothing designers with men earning an average of $214,170 compared to $74,894 for women, bringing the occupational average to $89,958.

But in a surprisingly male-dominated profession, women earned more.

Female bulldozer operators had an average taxable income of $100,253, compared to $92,407 for men.

Only 21 women in Australia listed this as their occupation, compared to 541 men, meaning the median income for this job was $92,700.

In the construction industry, consultant construction managers typically earned $115,151.

Australians earning six-figure salaries will be the biggest beneficiaries of Stage Three tax cuts from 1 July 2024, which will reduce the number of tax brackets from five to four for the first time since 1984.

Those with $120,000 pay $1,875 less in taxes, compared to now, which is better than the $875 paid to those with $80,000.