The tax obligations for many employed Australians rose more swiftly than their salaries during the fiscal year 2022-23, according to data from the Australian Taxation Office (ATO) released on June 27, 2025. The statistics also indicated that 91 Australians with total incomes exceeding $1 million paid no taxes in 2022-23.
This data, encompassing the entire 2022-23 fiscal year, represents the first full year of Prime Minister Anthony Albanese’s administration. While working Australians contended with increasing tax bills, the ultra-wealthy experienced a decrease in their incomes as property values, which had peaked unusually high, returned to more typical levels or declined.
The ATO findings highlighted that many individuals were significantly affected as their earnings were eroded by both inflation and the tax system. Women were particularly hard hit, especially following the elimination of the low- and middle-income tax offset.
This income tax offset was a provision meant to alleviate the tax burden on Australian taxpayers by directly reducing their taxable income. The benefit was contingent upon the individual’s taxable income. The Albanese government ended this offset upon taking office in 2022, a measure initially introduced by the Scott Morrison government to mitigate cost-of-living pressures following the Covid-19 pandemic.
The data also indicated a decrease in the number of landlords throughout Australia. Nevertheless, the number of those with negatively geared properties increased across all states and territories. Reports estimate that around 1,130,000 landlords reported a loss, with a median loss of $5,487 and an average loss of $9,346, as reported by ABC.
Regarding the 91 millionaires who did not pay income taxes, they claimed $390 million in various deductions to bring their tax liabilities to zero, as analyzed by the Australia Institute and ABC. Notably, 19 of these millionaires contributed $291 million to tax-deductible charities, averaging around $15.4 million each in donations.
The ATO data from the 2022-23 fiscal year also showed that the highest earners in the country resided in Sydney’s eastern suburbs, including areas like Darling Point, Edgecliff, Rushcutters Bay, and Point Piper.
Throughout 2022-23, the average income for the working population in Australia was $74,240, representing an increase of $1,913 or 2.6 percent compared to the previous fiscal year. Women’s average income rose by 3.3 percent or $1,992 to $62,046, surpassing men’s average income growth of 2.2 percent, which reached $86,199.
However, a significant portion of this income increase was offset by rising taxes, partly due to the conclusion of the low- and middle-income tax offset. Following the end of this benefit, the average net tax paid by all workers escalated by 4.2 percent, or $946, resulting in an average of $23,562.
According to the Sydney Morning Herald, women, particularly those who had fallen into the low- and middle-income tax bracket, faced an average net tax increase of $1,009, or 5.8 percent. Meanwhile, men experienced an average tax increase of $1,000, or 3.7 percent, bringing their total to $28,206. The inflation rate, approximately 6 percent, further exacerbated these financial challenges.