New data from the ATO has revealed where Australia’s highest-paid professionals live, with Sydney’s harbourside suburbs coming out on top as the country’s richest areas.
The figures, based on the tax returns of 14.7 million Australians for the 2018-19 financial year, reveal that seven of our highest-earning postcodes are located in Sydney.
Australia’s richest suburbs
Sydney’s Double Bay and Melbourne’s Toorak took out the top two spots on the list as home to the highest-earning Australians in the country, with average taxable incomes of more than $200,000.
The 3,572 individual taxpayers in Double Bay (2028) had the highest average taxable annual income by postcode, earning $202,598.
The 10,054 taxpayers in Toorak and Hawksburn (3142) were in second place, earning an average of $201,926.
Third on the list was Sydney’s 2027 - which comprises the pricy suburbs of Darling Point, Edgecliff, HMAS Rushcutters, and Point Piper - which saw its 6,051 tax-paying residents earn an average of $199,842 over the financial year.
The only suburb outside of Sydney and Melbourne to make the list is Cottesloe and Peppermint Grove (6011) in Perth.
The suburb’s 6,484 residents had an average taxable income of 179,403 over the same period.
Top 10 richest postcodes by average individual taxable income
Australia’s poorest suburbs
Elsewhere at the bottom of the list, the data also revealed the suburbs where workers earned the least amount of money during the 2018-19 financial year.
Those living in regional NSW and regional Queensland were among the nation's lowest average income earners.
The 226 people living in the (at the time) drought-ravaged postcode of 2386 covering Burren Junction and Drildool made an average loss of nearly $10,000.
The next lowest postcode was neighbouring Rowena – postcode 2387. It had 117 people who on average made less than $1,000.
The third lowest-earning suburb on the list was again in NSW.
Gurley’s (2398) 143 residents earned an average taxable income of just $11,493 over the 2018-19 financial year.
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Elsewhere, four Queensland suburbs made the list, taking spots four to seven.
Eulo (4491) and Coomrith, Glenmorgan, Teeba (4423) both saw annual earnings of its residents around the $14-15,000 mark.
Mungallala, Tyrconnel, Redford (4467), and Tablederry, Muttaburra (4732) residents didn’t earn much more with its 100-ish strong community earning just $16,985 and $17,229 per year respectively.
10 poorest postcodes by average individual taxable income
|Postcode||State||Suburb||Number of taxpayers||Average taxable income or loss ($)|
|2386||NSW||BURREN JUNCTION, DRILDOOL||226||-9,735|
|4423||QLD||COOMRITH, GLENMORGAN, TEELBA||129||14,923|
|4467||QLD||MUNGALLALA, TYRCONNEL, REDFORD||114||16,985|
|2876||NSW||BOGAN GATE, BOTFIELDS, GUNNINGBLAND, NELUNGALOO||241||19,160|
|2052||NSW||UNIVERSITY OF NEW SOUTH WALES||134||21,329|
Millionaires who paid no tax
Not only has the latest ATO data list the richest and poorest suburbs in Australia, but it also revealed that a whopping sixty-six millionaires paid no tax in the 2018-19 financial year
In 2018-19 there were 15,385 people who had a total income of over $1 million – which is just over 0.1% of the 14.68m Australians who earned an income that same year, up from 14,909 the year before.
Of those millionaires, 15,303 paid an average of 44% tax on their $35.08 billion total taxable income.
Shockingly, the remaining 55 paid nothing.
Forty-five of those millionaires were able to reduce their taxable income down to below the tax-free threshold of $18,200.
The other 10 were able to reduce their taxable income low enough that, when combined with other measures, they paid no net tax at all.
So how did they do it?
Mainly via gifts and donations.
Of the tax-paying millionaires, 8,514 donated an average $165,789 million each, totaling around $14 billion for an average of $165,789.
But 21 of the no tax-paying millionaires donated an average of $10.099 million.
The 11 millionaires who were able to get their taxable income below $6,000, donated a total of $158 million.