New ATO stats show 69 Australian millionaires did not pay income tax last financial year.

In 2016-17, 60 people who declared total incomes above $1 million reported taxable incomes below $6,001, two were between $6,001 and $10,000, and eight declared taxable incomes between $10,001 and $18,200.

This put them all below the tax-free threshold, and allowed none to pay the Medicare levy.

Sixty-nine managed to reduce their tax bill to zero by claiming millions in deductions, primarily for the “cost of managing tax affairs”, and hefty spending on “gifts or donations”.

The Tax Office says the “cost of managing tax affairs” typically includes the cost of preparing and lodging tax returns, fees paid to advisers, court costs and interest charges on tax disputes.

Thirty-seven members of the group that paid zero tax also managed to claim back franking credits totalling $7.8 million.

On the other end of the scale, the stats also shed light on the $21.98 billion in work-related expense deductions claimed by 8.84 million less wealthy taxpayers.

This included:

  • 3.6 million people claiming $8.62 billion in work-related car expenses
  • 1.4 million claiming $2.03 billion in work-related travel expenses
  • 6.4 million people claiming $1.86 billion in clothing expenses relating to their job
  • 530,230 people claiming $1.13 billion in self-education expenses
  • 7.25 million people claiming $8.33 billion in “other” work-related expenses

A total of 4.5 million people claimed $3.48 billion in tax deductions for gifts and donations, and 6.1 million people who claimed $2.29 billion for the cost of managing their tax affairs.