Tax data: Trends in individual taxes, deductions and offsets

ATO data shows the average taxable income for an individual in 2020/21, the most recent income year for which data is available.

Sources of income

Since 2013/14, the average total income has increased by 19%, with the greatest increase posted between 2019/20 and 2020/21.

Salary/wage income has trended upwards consistently, increasing a total of 18% since 2013/14.

The greatest shifts: 

• Net rent average income had bubbled along at average losses between $1,500 and $1,900 until it started trending upward after the 2017/18 income year. In 2020/21, the average income from net rent was $1,417. Modest earnings, no doubt, but a great reversal of fortunes across the category. 
• Government allowances average income increased sharply in the 2020/21 income year, as COVID-related payments came into play. Those listing income from government allowances listed an average of $6,569 in 2019/20 to $11,549 in 2020/21.
• Gross interest average income has decreased 69% since 2013/14.

Use the dropdown menu in the graph below to see trends in the average income across sources.

Tax deduction trends

The greatest change in the deductions claimed by individuals relates to superannuation contributions. The number of individuals claiming personal superannuation contributions as deductions to their taxable income has climbed steadily since the 216/17 income year, with the average deduction amount per individual decreasing greatly between the 2016/17 and 2017/18, before plateauing, even as the number of individuals continued to climb.

In the graphics below, select deduction items front eh dropdown menus to see trends in the number of individuals claiming deductions and the average claim per individual.

Tax offsets trends

Total offsets dipped sharply between 2011/12 and 2012/13 before rising again from 2017/18 and 2018/19.

The dip of the early 2010s reflects reductions in the seniors’ and pensioners’, low income and medical expenses tax offsets. The subsequent $10 billion rise at the end of that decade is almost entirely made up of the $8 billion low and middle income tax offset, with a little help from the Commonwealth of Australia benefits, and small business income tax offsets.

Select an offset or ‘total’ from the dropdown below to see the trends since 2011/12.

See the IPA’s upcoming taxation CPD events.