If an individual has a 'total income' of ten million dollars, and they pay no tax, their deductions would be looked at very closely by the ATO. Irrespective of whether you are a top earner, middle earner, or low earner, you are still allowed certain 'deductions' relative to the business you carry on, or that you are employed in. If the income is somehow going under the radar offshore, they will be caught at some point. Even trust and company structures are still taxed at the relevant rate, then the individual is assessed on what the entity has paid them, at their relevant personal rate. You and I can gear shares or property to bring our taxable income to nil, but what's the use, as you only pay $3.5k on $37,000, and only pay $20.7k on $90,000. You can only put $25,000 (concessional) into super' these days, and FBT is paid on all these other little luxuries I keep reading about, and if the expenditure can't be related to deriving income for the business, you pay FBT at the highest marginal tax rate.......an FBT return is another little headache altogether.
I don't know anyone earning ten million dollars a year, but if you do, and they are paying no tax, you have a duty to report them.
p.s. look at your tax return to familiarise yourself with the terms used. Page 2 for personal, page 3 for company.
