The ATO has notified us that the tax rates are changing from October 1, 2016.
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. The Bill is currently before the House of Representatives but the ATO have provided a number of updated tax tables and advised that they are to apply from 1 October 2016.
Updated tax tables do not include any catch-up component for the portion of the year which has already passed. Individuals who are affected will receive the full benefit of the tax changes upon assessment of their income tax return for the 2016-17 income year.
For the employers…
- If you are an employer, you need to update your payroll system with the new tax tables from 1 October 2016.
- If you use Xero or Quickbooks Online, don’t worry, as everything will be taken care of for you. The tables will be automatically updated.
- If you use MYOB, Quickbooks, or another software, you will need to contact your software provider to download the latest tax tables.
- If you use the ATO Tax Table, you can download the new tax tables from the ATO here.
For the employees…
- If you are an employee, you may notice a small change in your net pay from 1 October 2016 where your annual income exceeds $80,000.
If you have any questions, please feel free to contact our friendly team at The A Firm on 07 5596 4604.