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 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