The Australian Taxation Office (ATO) collected approximately $610.6 billion in total net cash collections in the 2023–24 financial year.
Points of interest from the 2022-23 data
The total tax revenue collected by the ATO for 2022–23 was $577.4 billion: 51.6% came from individual income tax ($298 billion) 24.2% came from companies ($140 billion) 14.2% came from GST ($81.7 billion)
The federal Government raises around 81 per cent of total tax revenue in Australia. State and Territory governments receive 45 per cent of their revenue through transfers from the federal Government, including all GST revenue.
The resources sector has once again emerged as Australia's biggest taxpayer, with the ATO Corporate Tax Transparency Report revealing major mining and energy firms contributed $48 billion in company tax in 2023-24.
"We estimate that just under half of that $105.1 billion is made up of collectable debt. That $46.4 billion is almost double the $26.5 billion of collectable debt owed in 2019." Heferen said it was important to be aware that only 22,000 taxpayers are responsible for $11 billion of the total amount of collectable debt.
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If this is an individual or sole trader, the ATO can: Take money straight from your bank account (this is also known as a Garnishee Notice).
Heavy Reliance on Personal Income Tax
Australia funds a larger share of public spending through personal income tax than most countries. OECD data shows Australia collects about 40% of its tax revenue from individuals, compared to an OECD average closer to 25%.
Australia's 2022 tax-to-GDP ratio ranked it 29th¹ out of 38 OECD countries in terms of the tax- to-GDP ratio compared with the 2023 figures. In 2022 Australia had a tax-to-GDP ratio of 29.4%, compared with the OECD average of 33.9% in 2023 and 34.0% in 2022.
How to avoid paying higher-rate tax
High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2022, the bottom half of taxpayers earned 11.5 percent of total AGI and paid 3 percent of all federal individual income taxes. The top 1 percent earned 22.4 percent of total AGI and paid 40.4 percent of all federal income taxes.
Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors.
Australia's superannuation system can provide tax-free income after age 60, but it does not do so automatically. Whether your income is genuinely tax free depends on how your super is structured, how it is withdrawn, what type of fund you are in, and how your broader financial picture fits together.
So far in fiscal year 2026, the largest source of federal revenue is Individual Income Taxes (49.2% of total revenue). Federal revenue is used to fund a variety of goods, programs, and services to support the American public and pay interest on government debt. Revenue is typically measured by fiscal year (FY).
No, Australia is not 90% white; while a large majority identify with European ancestry (around 76-80% in recent years), a significant and growing portion identifies as Asian, African, Middle Eastern, or Indigenous, making it a highly multicultural nation with diverse ethnic backgrounds, not overwhelmingly white. Recent census data shows European ancestry (English, Irish, etc.) makes up a large chunk, but Asian ancestries are also substantial, with over 17% Asian population and around 3.8% identifying as Aboriginal or Torres Strait Islander, per the 2021 census data from Wikipedia.
There aren't many of them, just 110,613 — 82,258 men and 28,355 women. Only 39,209 have taxable incomes of more than $500,000, and of these only 14,467 have taxable incomes of more than $1 million.
Pensions - Articles - Eight tips to beat the taxman this April
Yes, $70k is a fair salary in Australia, often near the median income, making it a decent living for a single person, especially outside major cities, but it can be tight in expensive areas or for those with high living costs like mortgages, with full-time averages now closer to $90k-$100k.
So, on average Australians pay about $3,000 more than Americans a year. Both countries veer close to the OECD average, which was $12,911 USD. Residence of high-tax, high-benefits countries like Norway, in contrast, pay rates of over $30,000 USD.
According to ABS data, just 2.61 million Aussies – or about 10 per cent of the population – earn $100,000 or more a year. Many people will never reach a six-figure income in their working lives.
The Cost of Living in Australia vs the USA
Both countries rank among the top 20 countries in the world for the highest cost of living, but Australia's cost of living is slightly lower than that of the U.S. Note that the cost of rent in Australia is 20% cheaper than what you'll find in the U.S. – a striking difference.
Every Australian taxpayer will receive an extra tax cut of up to $268 from 1 July 2026 and up to $536 every year from 1 July 2027, compared to 2024–25 tax settings. These new tax cuts are modest but they will make a difference.
But how people define “upper class” differs. Some say you'd need to be making twice the median income, or around $167,460. Even more elite are those who find themselves in the top 5 percent of earners. In the U.S., you'd need to be making about $336,000 to find yourself in the top 5 percent, according to Census data.