Australia’s richest are ripping off the poorest – here’s the proof… 13



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We like to think that Australia’s a fair place and for the most part, it really is and most of us absolutely love living here. However, new information from the Australian Taxation Office (ATO) reveals that the richest Australians aren’t contributing their share to the country while leaving the average Joe to pay up.

In The Age today they’ve reported that 55 Australians earning over $1 million per year managed to write down their taxable incomes to below the $18,200 tax free threshold. Between them they reported earning $129.5 million, but wrote it down to avoid the tax man.

Basically, those who can afford to contribute the most are contributing the least. The tax statistics released Wednesday reveal that 40 of them claimed an extraordinary $42.5 million for the “cost of managing tax affairs” meaning they each paid an average of $1 million to an adviser prepared to help to bring down their taxable income, which itself is a tax deduction.

If each one of these people paid their tax every year, that’s over 100 extra pensions that could be funded.

Most of the 55 were either ungenerous or modest when it came to giving, claiming nothing for gifts. However 10 of the 55 gave between them $10.4 million, also suggesting their incomes were higher than reported. The gifts may not have all gone to charities. The Tax Office also allows deductions for gifts to political parties.

It’s a shame that the Australian culture hasn’t taught some of our citizens better and it’s even more of a shame that people who can afford to do the right thing, choose not to.

This does bring up the case for stricter tax reviews for high income earners. It could serve as an initial investigation into tax corruption. While we’re disappointed with the corporate tax system, perhaps it’s time to review the personal tax system too.

Tell us, do you think we need stricter personal tax reviews for high income earners? Do you think it’s wrong that the wealthy are leaving the average Australian to fuel the economy when they’re the ones that can afford to? 

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  1. We’re lucky. We don’t earn enough to pay any tax at all! Can’t get better than that.

  2. You will get nothing done about it either. Many of our politicians are in the 1 million plus bracket and who do you think makes the tax rules. Right. Th e treasurer. What is the treasurer? A POLITICIAN.

    2 REPLY
    • Yes and a terrible one at that, we won’t see anything done while ever it effects them. They will only hit the higher income earners than themselves or the low income earners but never in the middle where they sit.

    • Spot on Rob.
      This government has always helped the rich and taken from the normal working man.
      The rich put money into the liberal party so they get look after.
      That should be classed as bribery

  3. The only thing I see, is people doing the same as everyone else. It is called minimising tax, don’t you do it?….you/they would be crazy not to. Don’t you agree???????
    If the means for ALL of us to do it wasn’t there, they and we would not be able to do it.

    1 REPLY
    • Neil the only reason the lower income earners do it is they need all the money they can get to survive, The only reason the rich do it is that they are greedy. I like a lot of others are on the pension and therefore dont pay tax, Hell I wish I did pay Tax it would mean I was getting above the living below the poverty line and h then have a better chance of living some sort of reasonable life. Power bill just in and out of the pension my share is $176.. now thats a big chunk gone, so it will be less food this fortnight.I wonder if Mr Hokey Pokey will shout me a couple of meals……

  4. If political parties are receiving large donations from these people no wonder they don’t want to enforce changes to capture them. I’m not against negative gearing but how easy it would be to set a cap on the amounts claimed. Not rocket science but are politicans paid to think.

  5. If they have paid their tax adviser 1 million surely he would have to pay tax on those earnings, the left tend to forget that the high earners create jobs and the workers in those jobs pay income tax, petrol tax GST and other taxes disguised as fees and stamp duty. So in affect they are responsible for a huge amount of tax being paid to the government

  6. Yes I think it is appalling and incredibly selfish. The governments should go after rogues and get them to pay their fair share before attacking those who can least afford it. I wonder how many current and previous pollies do the same.

  7. Well, if Australia was to change its tax base to one very simple form, all the current problems would go away. We already have the basis.. the GST, so expand it to include ANY passage of money (or kind/swap)

    You get paid? Income tax=GST=10%
    You buy a house? GST 10%
    You buy shares? GST 10%
    Replace every form of ‘tax’ with a straight GST and delete all exemptions.
    There are companies out there who structure their production through independent ‘companies’ so that they can increase their profit margin. But with a GST on every movement of an item they will price themselves out of the market compared to a company that producers an item from scratch and sells it to the consumer.

  8. What they are doing is perfectly legal. The rules are there so you would be silly not to use them. You don’t get to earn $1m a year by sitting on your hands and doing nothing, so good luck to them if they are in this position. They have obviously worked hard to get there so enjoy it. All of these rules are there for ALL individuals regardless of the level of income, so use them.

  9. Why is this not surprising

  10. Who Is going to knowingly pay more tax than they are required to? Nobody, that’s who. Everyone wants to minimise their tax obligations and most people do so within the governing laws. Financial planners/ advisors/ accountants etc provide strategies for reducing your tax legally. If the rich are considered to be paying too little in tax then it is the rules governing tax that need to be changed.

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