Tax cuts – withholding amounts changed

The Australian Government has increased the 32.5% tax threshold from $37,001–$80,000 to $37,001–$87,000.

What does this mean for employers?

The tax tables have changed for employees who earn over $80,000.

The new tax tables are available now and should be used for payments made from 1 October 2016.You can download the updated tax tables from ato.gov.au/taxtables or contact your payroll software provider for the relevant update.

You don’t need to make any other adjustments or refunds as the ATO will refund any over-payment of tax when your employees (and payees) lodge their 2016–17 income tax return.

Source: ATO