Tuesday, May 01, 2012

Tax Stats - the crisis was a leveler

Australia is a more equal society than it was, and the global financial crisis can take the credit.

New Tax Office data shows a sharp slowdown in income growth in Australia’s wealthiest suburbs, offset by rapidly climbing incomes in Australia’s poorest postcodes.

In NSW the postcodes encompassing Point Piper, Edgecliff, Dover Heights, Northbridge and Mosman continue to report the highest taxable incomes. But the average incomes are little changed between 2006-07 and 2009-10, thhe two years that bookend the financial crisis. The average in Edgecliff and surrounding suburbs fell six per cent to $182,200. The average in Northbridge and surrounds climbed seven per cent to $155,100. (Postcode 2110 housing Hunters Hill is an exception. Reported incomes there soared 25 per cent to $164,200 pushing it up from eighth to second place.)

In contrast the five poorest postcodes all did well. Encompassing small communities near Armidale, Cowra, Inverell and Condobolin, they enjoyed growth in average incomes of between 10 and 19 per cent.

Assisting the poorest postcodes were the substantial pension increases in the 2009 budget. Holding back the richest postcodes was the collapse in share market prices during the crisis.

The figures for 2009-10 are the latest available. The tax on incomes earned in that year is not calculated and paid until the following year and it takes another year to process the data. Surgeons remained the highest paid professionals in 2009-10, reporting average taxable incomes that year of $332,800. Apprentice hairdressers were among the lowest-paid, collecting $22,700...

Primary school teachers are moving up the scale earning $57,420, somewhat more than plumbers on $56,615. Barmen and baristas, although enjoying high social status, earn less than cleaners, taking home $30,169 compared to $33,204. Journalists are doing surprisingly well, taking home more than than the average professional sports player - an average of $66,427 compared to $63,146.

A record 1.7 million Australians were landlords in 2009-10, one in every seven of Australia’s 12.4 million personal taxpayers. Almost two-thirds were negatively geared, meaning they lost money renting out their properties, presumably as part of a plan to make the money back in lightly-taxed capital gains when they sold.

A total of $4.8 billion was lost renting out properties in 2009-10, an improvement on the $6.5 billion lost in 2008-09.

The ending of the financial crisis appeared to make Australians more generous. They gave $2.3 billion to charities in 2009-10, up from $2 billion.

More of us are using the e-tax computer system to complete out tax returns with only 1.2 million still using paper. But the Tax Office reports that it is taking us longer, an average of 4.9 hours in 2009-10, up from 4.5 hours.

In today's Canberra Times, Sydney Morning Herald and Age


Taxable income 2009-10 $

1 CEOs 151,707
2 General managers 102,139
3 Advertising/sales mgr 82,751
4 Accountants 81,138
5 Software programmers 80,593
6 Practice managers 79,503
7 Police 74,054
8 Electricians 72,934
9 Metal trades fitters 71,269
10 Project administrators 65,903
11 Secondary teachers 62,684
12 Welders 60,523
13 Misc schoolteachers 57,565
14 Primary teachers 57,420
15 Bank workers 55,745
16 Motor mechanics 55,508
17 Truck drivers 54,514
18 Office managers 52,795
19 Nurses 52,664
20 Carpenters 51,695
21 Public servants* 51,590
22 Service managers 49,761
23 Sales reps 49,723
24 Retail managers 48,667
25 Secretaries 48,377
26 Accounting clerks 47,571
27 Building labourers 47,399
28 Misc labourers 45,518
29 General clerks 44,078
30 Storepersons 42,838
31 Chefs 40,596
32 Supply clerks 39,385
33 Receptionists 36,415
34 Nursing aides 35,213
35 Education aides 34,290
36 Aged carers 33,825
37 Cleaners 33,204
38 Child carers 32,324
39 Sales assistants 31,706
40 Checkout operators 28,663

Source: Australian Taxation Office. * levels 3-4 (junior levels) only.

Related Posts

. Australia is really good. The only people who don't believe it are...

. Over the decade our rich got richer

. Where the rich people live, 2006-07