Elite Tax Tactics
Hook
Why does a system with a 45% top rate produce thousands of millionaires paying zero net tax every year? Because the levers that reduce effective tax are only economically rational above ~$500k.
Key Numbers
- Roughly 1/3 of large companies with >$100m turnover pay zero corporate tax in any given year [ATO]
- Top 10% of earners receive ~50% of the total tax benefit from negative gearing [Grattan]
- Franking credit refunds to SMSFs in pension phase: ~$5 billion/year [PBO]
- SMSF asset pool: ~$900 billion [ATO]
Context
Class analysis of the Australian tax system's structural levers: family trusts, bucket companies, franking credit harvesting, negative gearing, CGT main residence exemption, self-managed super, offshore structures, and parliamentary allowances. Every claim sourced to ATO, PBO, Grattan, Australia Institute, Centre for Public Integrity, Michael West, or ICIJ. No politicians are named on this page.
Takeaway
Australian tax law is progressive on paper and regressive in practice. The feature is not a bug.
Share Stat
A single discretionary trust can distribute the same dollar across 4–5 family members at their lowest individual marginal rates — turning a 47% rate into a 16% average.
Last reviewed: 11 Apr 2026