More than 100 Australians earned more than $1 million in total income yet paid no tax in 2021–22, while Australia’s highest earners live in Double Bay, according to newly released data from the Australian Taxation Office (ATO).

In its latest annual Taxation Statistics, data extracted from tax returns reveals the number of people who earned more than $1 million but paid no tax has climbed to 102 in 2021–22, up from 66 a year earlier. 

Analysis of the data by the Australia Institute and the ABC shows this cohort of affluent taxpayers earned on average $3.8 million each.

Overall, these 102 millionaires claimed $279 million worth of different deductions to reduce their tax bills to zero.

The vast bulk of this was $240 million in donations to tax-deductible charities, or an average of about $2.4 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-taxpaying high-earners claimed deductions of $201,000 on average for managing their tax affairs.

The Australia Institute’s senior economist, Matt Grudnoff, says if the federal government wants to raise more revenue, “then it doesn’t necessarily need to increase taxes, it just needs to crack down on tax concessions and close tax loopholes”.

“Recently we have seen the controversy around the big consultancy firms and how they go to enormous effort to find and exploit the tax system for their rich clients,” he said.

2.3 million Australians declared rental income

The data also shows 2.3 million Australians declared rental income in 2021-22, with about 71 per cent of landlords owning only one investment property (just over 1.6 million).

About 19 per cent (428,000) own two properties, around 6 per cent (132,338) own three properties, while around 4 per cent of landlords (47,633) own four properties.

There are very few landlords (19,530) with five investment properties and a similarly small group with six or more (19,977). 

Overall net rental income for 2021–22 was $6 billion, up from $3.2 billion in 2020–21.

On average, more landlords made profits than losses in 2021–22 as interest rates were at historic lows for much of that financial year. The net rental gain median was $1,070 and the average was $2,608. 

Of about 950,000 landlords who made a loss (were negatively geared), the median loss was $3,571 and the average was $6,308.

The losses are expected to increase substantially going forward as interest rates only started increasing in May 2022.

Richest and poorest postcodes

The ATO figures show the country’s highest-earning postcodes were in Sydney, with seven suburbs making up the top 10.

The Sydney suburb of Double Bay had the greatest taxable income in 2021–22, with the average resident earning more than $354,308.

Western Australia’s Cottesloe and Peppermint Grove, which share the postcode 6011, were also near the top of the list with an average taxable income of $295,283.

The next highest earners were in Sydney postcode 2027, which takes in the harbourside suburbs of Darling Point and Edgecliff. Here the average taxable income was $269,777.

Those living in NSW were also among the nation’s lowest average income earners.

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.

Surgeons reap more than $460,000 on average while care workers struggle

Doctors continue to dominate in terms of earning the highest average incomes by occupation.

The taxation statistics showed surgeons had the highest average income – $460,356.

Anaesthetists earned only slightly less ($431,193), financial dealers ranked third ($373,733), and internal medicine specialists ranked fourth ($340,729).

Those who are often younger and work in part-time or casual jobs, represented occupations with the lowest average taxable incomes.

The lowest-paid occupations were classed as “drivers” with an average taxable income of $10,109 and “care workers” with an average taxable income of $13,094.

The bottom earning occupations thereafter were “boxers” ($16,186), “leaflet deliverers” ($18,384) and “cooks” ($20,990).

What does the average person earn?

More than 15.5 million Australians lodged tax returns in 2021–22.

The average taxable income in 2021–22 was $72,327. But the ATO data shows that the median or middle income, which strips the impact of those with very high and low earnings, was $53,041.

Men continued to have a higher taxable income compared to women, and they also had a higher average superannuation balance.

The average superannuation account balance decreased from $170,000 in 2020–21 to $164,000 in 2021–22, and the median account balance decreased from about $60,000 to just under $58,000.

Net capital gains reported by individuals rose from $36 billion in 2020–21 to $51 billion in 2021–22.

Total tax revenue collected by the ATO for 2021–22 was $530.1 billion, of which 50.3 per cent came from individual income tax ($266.7 billion).

Of the rest, 24.2 per cent came from companies ($128.1 billion), 14.3 per cent came from GST ($76 billion), 5.5 per cent came from super funds ($29.1 billion), 4.3 per cent came from excise ($22.6 billion), and 1.5 per cent came from Fringe Benefits Tax, Petroleum Resource Rent Tax, Luxury Car Tax and the Wine Equalisation Tax ($7.5 billion).

Revenue from the luxury car tax increased by 11 per cent to $978 million.