Recently, the ATO released statistics on 2019-2020 tax returns, and there are some encouraging trends in innovative ways our most productive owners and corporate entities maximise their profits while our tax receipts continue to grow.
First, as a testament to the agility and forward-thinking policy of my government, post code 6011 (Cottesloe Beach and Peppy Grove) has topped the charts with the largest average taxable income for the entire country. Those two locations are well-known for its hard-working affluent residents that own a number of mining companies.
Second, only slightly more than a ¼ of companies operating in metal ore mining (26%) and O&G extraction (27%) paid net tax. Which means the other ¾ of the companies have certainly reinvested their profits into areas that make a positive difference to its Boards and largest shareholders.
Third, our country continues to increase its overall tax receipts year by year. It is great to see that chattel remains our most important source of income, and we must concentrate our efforts on increasing their numbers through an expanded skilled migration program. As a matter of policy, we need to consider a rate of increase for the overall numbers, similar to the RBA policy of ever-positive inflation rate that has done so well for the value and stability of our currency and financial markets as a whole.
Finally, I would like to applaud personal innovation techniques of our most progressive individuals who have managed to save, on average, $1.6M in annual income tax payments, based on average annual earnings of $3.5M. We need to applaud these individuals as they lead our nation in the field of creative accounting.
I would also like to point out that there is another field of innovation where the important work of our politicians and country owners must be progressed. Over last few decades, this collaboration has progressed from brown paper bags to Panama Papers. However, there is ample room for innovation to expand this collaboration based on expertise developed by Australians, and attracting positive lessons learned from our USA and EU colleagues. We must also embrace blockchain technology to further the important work in this area.