If you have employees in your business it is important to ensure you are paying them the correct amount. If you are using Myob or Quickbooks you may need to update your tax tables. If you are using Xero this will automatically be updated.
In the May Budget the government announced changes to individual tax rates for the 2016-17 income year. Legislation dealing with those announced rates was 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.
The legislation changes to the tax thresholds will see an individual marginal tax rate of 37% when their income exceeds $87,000. The current threshold is $80,000.
o benefit from this change your taxable income must be more than $80,000.
Please note that updated tax tables do not include any catch-up component for the portion of the year which has already passed. Individuals affected will receive the full benefit of the tax changes upon assessment of their income tax return for the 2016-17 income year.
To have a look at the tax tables and to download the latest you can visit the ATO's website.
For employees
The reduced amount of tax for the full year is shown below:
$80,000 or less $0
$81,000 $45
$82,000 $90
$83,000 $135
$84,000 $180
$85,000 $225
$86,000 $270
$87,000 or more $315
If you would like more information or would like to how this will effect you, please contact the office.