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.
Businesses using AusBiz Solutions Intuit Quickbooks Online for payroll will have the new tax tables automatically applied.
You can also download the updated tax tables from ato.gov.au/taxtables or contact your payroll software provider for the relevant update.