In the May 2016 Budget the government announced changes to individual tax rates for the 2016-17 income year. Legislation dealing with these announced rates were introduced to Parliament on 31 August 2016. As a result a number of tax tables have been updated to apply from 1 October 2016. Those tax tables that have not been updated will continue to apply.
From 1 October 2016 new tables will reflect the proposed expansion of the middle income tax bracket. The 32.5% tax level threshold will be lifted from $80,000 to $87,000.
Please ensure you update your payroll software or download a copy of the new tables before paying your employees.
For more information visit https://www.ato.gov.au/Rates/Tax-tables/
Or for further information or assistance relating to these changes, please contact our office.