Published on Oct 4, 2016
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Are you withholding the right amount of tax from your workers? Don’t forget to update your old tax tables.
Ensuring that you are meeting your tax obligations is not the most exciting aspect of running your business, but taxing your employees at the wrong rates can result in a time consuming or even expensive fix.
New income tax thresholds have been released by the Government that have increased the 32.5% tax threshold from $37,001 – $80,000 to $37,001 – $87,000.
The new tax tables were released for rollout on 1 October 2016.
What does this mean for your business?
- The tax tables have changed for employees who earn over $80,000.
- New tax tables and payroll software updates will apply from 1 October 2016
- You need to download the updated tax tables from ato.gov.au/taxtables or contact your payroll software provider for the relevant update.
Do employers need to make any other adjustments?
The new tax tables are effective from 1 October 2016. You don’t need to make any other adjustments or refunds as we will refund any over-payment of tax when your employees (and payees) lodge their 2016-17 income tax return.
The new threshold will also apply to foreign residents.
For more information go to the ATO or catch up on business news at The Small Business Newsroom. You can click on Tax tables or the Tax withheld calculator to find out how much tax you should be deducting.
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