The Government and ATO have finally increased the 32.5% tax threshold from $80,000 to $87,000 for the FY17 Tax Year.
The new tax tables for employees who earn over $80,000 are effective from 1 October 2016. You don’t need to make any other adjustments or refunds for the period 1 July 2016 to 30 September 2016 as the ATO will refund any over-payment of tax when your employees (and payees) lodge their 2016-17 income tax return.
You need to download the updated tax tables from ato.gov.au/taxtables or download from your payroll software provider (MYOB or XERO) for the relevant update.
Contact us now to make sure your tax planning is up to date.