91 Australian Millionaires Paid No Tax in 2022–23, ATO Data Reveals

 

Introduction

Imagine earning over a million dollars a year and not paying a single dollar in income tax. It sounds unbelievable—but according to recently released data from the Australian Taxation Office (ATO), this is exactly what happened. In the 2022–23 financial year, 91 Australians who earned more than $1 million paid no income tax. These staggering figures spark questions around tax fairness and the sophistication of high-wealth tax planning.

Let’s break down how this happened, what it means for everyday taxpayers, and what lessons small and midsize earners can learn.

Section 1: The Big Numbers 📊

• 91 high earners paid zero tax in 2022–23, despite each earning at least $1 million .

• Together, they claimed a whopping $390 million in deductions 

• A majority (19 individuals) donated $291 million to charities—$15.4 million each, on average 

• They also used $62.8 million in tax agent fees – approx. $690,815 each .

Deduction Type	Total Claimed	Average per Person
Charitable Donations	$291 million	~$15.4 million
Tax Agent Costs	$62.8 million	~$690,815
Total Deductions	$390 million

Section 2: How They Did It – Legal or Loophole?

1. Generous Donations

Large charitable gifts offer substantial tax offsets. When structured correctly, they can wipe out taxable income completely.

2. Professional Fees

Tax professionals are also a legitimate deduction—modern tax law allows fees relating to managing and preparing tax.

3. Sophisticated Tax Advice

Wealthy individuals often employ elite accountants and lawyers to optimize loopholes—utilizing legal avenues with precision 

Australia Institute economist Greg Jericho emphasised that these individuals can afford "high-priced tax lawyers and accountants" to legally reduce their tax to zero 

Section 3: Broader ATO Insights

High-income Postcodes

Sydney’s prestigious eastern suburbs dominated the top-earning postcode list.

• Postcode 2027 (Darling Point, Edgecliff, Point Piper) led with avg taxable income of $279,712 

• Other top areas included Double Bay (2028) and Woollahra (2025), followed by Toorak in Melbourne 

Professions & Incomes

• Surgeons: Avg $472,475

• Anaesthetists: $447,193

• Financial dealers: $355,233 

Rental Income Trends

• 2.3 million Australians declared rental income.

• 71% owned just one property; average net rental profit was $696, but many showed minor losses 

Section 4: Impact on Everyday Australians

Recent ATO reporting shows tax burdens are rising for average earners:

• Wages increased by 2.6%, but net tax paid rose by 4.2%—suggesting tax outpaced gains 

• The end of the Low- and Middle-Income Tax Offset disproportionately hit women, increasing taxes for many 

This divergence has fuelled public concern—why are everyday taxpayers paying more while a select few earners pay none?

Section 5: Practical Takeaways for Regular Taxpayers

1. Look for legitimate deductions

   • Work-related expenses

   • Charitable contributions (even modest ones)

   • Education, professional subscriptions

2. Engage a qualified tax agent

   • Can help uncover overlooked deductions and ensure compliance

3. Keep impeccably detailed records

   • Essential for substantiating claims

4. Stay on top of tax law updates

   • Rules change—offsets like LMITO may return or end

5. Seek advice early and tailored

   • Professional planning ensures you stay legal and maximise returns

Section 6: What the ATO Is Doing

• Using data analytics and AI to monitor high-risk claims

• Targeting rental deduction patterns and expensive deductions

• Adjusting superannuation policy to rebalance contributions for very wealthy individuals 

Section 7: Real-Life Example

Meet "David", a hypothetical high-earner:

• Income: $1.2M

• Charitable donation: $12M

• Tax agent fees: $500K

• Total deductions: $12.5M

• Result: Negative taxable income → no tax owed

While legal, this example highlights how scale amplifies impact—something out of reach for average earners.

Conclusion

The revelation that 91 millionaires paid no tax in 2022–23 shines a spotlight on Australia’s tax system and raises serious questions:

• Should deductions be capped for high-earners?

• Can ATO level the playing field without stifling generosity or business?

• What can everyday Australians learn and use?

Ultimately, the message is clear: effective tax planning is critical—regardless of income level. Understanding the system and seeking guidance can meaningfully impact your tax position.

If even millionaires find legal routes to eliminate their tax bills, imagine how much you might gain by optimising your deductions.

FAQs

Q: How many people earned over $1M and paid no tax?
A: 91 individuals in 2022–23 

Q: What was their total deduction claimed?
A: Around $390 million 

Q: Were charitable donations the main way?
A: Yes—donations totaled $291 million, averaging ~$15.4M per person 

Q: Can I claim my accountant's fees?
A: Yes, if directly related to preparing your tax return.

Q: Is it legal for wealthy people to avoid tax this way?
A: Yes, these methods are fully legal. However, the ATO monitors high-value claims closely.

Q: How can I improve my tax return?
A: Keep receipts, claim allowable deductions, consult a tax agent, and stay current with tax regulations.

Want Help Filing Your Tax Return?

At Manika FinTax Solutions, we simplify tax. From uncovering overlooked deductions to maximizing returns, we handle it all. Don’t navigate tax time alone—contact us today for personalised filing support and experience peace of mind.

Keywords: Australian millionaires no tax, ATO data 2022–23, high earner deductions, Australia tax planning, charitable donations tax, rental income ATO, tax offset Australia, maximise tax return, Aussie tax fairness

Article by Manika FinTax Solutions – Your friendly tax experts.