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.

You need to download the updated tax tables from 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