Australia’s richest and poorest postcodes revealed

Do you want to know where Australia’s richest people live?

The latest data from the Australian Taxation Office (ATO) has revealed where Australia’s highest-paid professionals reside, with one unlikely city taking the crown as home to the country’s most affluent people thanks to a bumper income year: Perth.

Here’s a breakdown of where Australia’s richest (and poorest) people live, according to the average annual income of each area.

Top of the richest postcodes in Australia by the average income

Of the top 10 richest postcodes, 1 is located in Western Australia, 1 is located in Victoria and the remaining 8 are all located in some of the most exclusive spots across Sydney.

At the top of the list is Western Australia’s 6011 postcode, which comprises Cottesloe and Peppermint Grove.

The suburbs’ 6,581-strong population has a combined median income of $325,343 for the 2019-20 tax year.

Not only does this put the postcode far ahead of the rest on the list, but it also represents a huge increase (of over 80%) from the $179,376 median income recorded in the prior fiscal year, at which point the famous seaside postcode settled in 6th place on the top 10 list.

It is also the first time a postcode’s average taxable income has reached $300,000, which is even more outstanding given the tax year used for reference is at the beginning of the Covid-19 pandemic.

In second place was the NSW 2027 postcode - home to Darling Point, Edgecliff, and Point Piper - with an average taxable income of $205,967.

This is a step up from its third-place position for the prior financial year.

In third place is another NSW postcode, 2030 - home to Bellevue Hill - with a $195,204 median, an increase from eighth place year-on-year.

Postcode 2030 - home to Dover Heights, Rose Bay North, Vaucluse, and Watsons Bay in NSW - is positioned in fourth place with its 9,888 residents earning an annual median of $186,025.

Melbourne’s only postcode on the list, 3142 which is Hawksburn and Toorak, came in fifth place with an average $184,939 income.

Other Sydney suburbs that made up the remaining five postcodes included Mosman, Split Junction, Hunters Hill, Northbridge, Woollahra, and Double Bay.

Here’s the full list:

Top of the poorest postcodes in Australia

Impressively, 8 of Australia’s top 10 richest postcodes are located in NSW, but the state is also home to 5 of the country’s poorest postcodes.

The remaining 5 are spread across South Australia and Queensland.

The top 6 postcodes each made an annual income loss for the financial year, but it’s worth noting that these postcodes with the lowest average taxable incomes have significantly smaller populations and fewer individuals who lodged tax returns.

For example, the top three postcodes listed have a combined individual total of 618 whereas the richest 6011 postcodes - Cottesloe and Peppermint Grove - have 6,581 individuals.

However, the data shows that listed in the first place as the nation's poorest postcode, with an average taxable income loss of -$23,484 is 2398 (Gurley) in NSW.

In second and third place, also located in NSW, are 2386 and 2405 with average income losses of -$17,794 and -$14,763 respectively.

The 2405 postcode is a newcomer for the 2019-20 financial year.

These top 3 postcodes are all located in rural NSW, which means their income losses are likely due to farming losses suffered at the hands of the widespread bushfires.

Between July 2019 and 13 February 2020, which falls in the financial year this data is based on, the NSW Rural Fire Service reported that 11,264 bush or grass fires burnt 5.4 million hectares and destroyed 2,439 homes.

In fourth place is South Australia’s 5013 postcode which is home to Gillman, Ottoway, Pennington, Rosewater, and Rosewater East - the area also reported a loss of -$7,906 over the year.

In fifth place is 2397 -  Bellata, Jews Lagoon, and Millie also in NSW - which also reported an annual income loss of -$4,645.

The rest of the top 10 was made up mainly of rural postcodes in South Australia, Queensland, and 1 in NSW.

Here’s the full list:

60 millionaires paid zero tax

Not only has the latest ATO data listed the richest and poorest suburbs in Australia, but it also revealed that a whopping 60 millionaires paid no tax in the 2019-20 financial year.

That means that there were 60 Australians who earned more than $1 million in that financial year who did not pay a cent of income tax, compared to 66 millionaires the year before.

And on average these 60 individuals earned $3.5 million each.

How?

Together these 60 millionaires claimed a total of $165.3 million worth of deductions to reduce their tax bills down to zero.

The ATO’s latest taxation statistics are based on the tax returns of almost 15 million Australians for the 2019-20 financial year.

READ MORE: Where should I buy my next investment property in Australia?

About Brett Warren Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.