Australian workers typically pay more than $18,000 a year in income taxes, and government revenue is growing at a much faster rate than population growth.
During the 2022-23 financial year, Prime Minister Anthony Albanese’s government collected $278.39 billion in personal income taxes.
This represented 45 per cent of the Commonwealth’s $618.227 billion in revenue.
The 14.9 per cent annual increase was much higher than the 2.4 per cent population growth as wage growth boosted tax collections, new Australian Bureau of Statistics data released on Tuesday revealed.
With Australia home to 15.13 million taxpayers, that left an average income tax bill of $18,395.
Australian workers typically pay more than $18,000 a year in income taxes, and government revenue is growing at a much faster rate than population growth.
But that was far from the only tax on individuals: revenue from the health insurance tax increased 10.2 percent, to $22.273 billion.
Another $4.147 billion was collected from fringe benefit taxes on things like a company car.
In total, taxes applied to individuals amounted to $304.811 million, or 49 percent of the federal government’s total tax revenue.
The 10 percent goods and services tax raised another $86.274 million, or 14 percent of tax collections.
Companies paid $154.883 million in taxes, or a quarter of Commonwealth revenue.
The Treasury’s Intergenerational Report in August warned that Australians would pay more personal income tax unless increased immigration produced more working-age taxpayers to offset the aging population.
“As the population ages, the personal income tax base is expected to continue to narrow in line with the projected decline in labor force participation,” he said.
During the 2022-23 financial year, Prime Minister Anthony Albanese’s government collected $278.39 billion in personal income taxes, an increase of 14.9 percent.
‘In the absence of policy changes, projections show increasing reliance on personal income tax.
“Taxpayers have declined as a percentage of the total population since peaking in 2005-2006, despite a similar employment-to-population ratio.”
The Treasury still expects personal income tax revenue to grow from 12 per cent of gross domestic product in 2022-23 to just above 14 per cent by 2062-63.
Only 12 per cent of Australians aged 70 and over pay income tax, and this group currently represents 12.2 per cent of the total population.