The ATO has announced that it has issued new PAYG withholding tax schedules to reflect the lower personal tax rate contained in the Treasury Laws Amendment (Income Tax Relief) Bill 2016.
The changes will increase the middle income tax bracket (the threshold at which the 37 per cent rate commences) from $80,000 to $87,000.
Employers will be required to lower the amount of tax withheld for affected employees to factor in the new lower tax rate effective from Saturday 1 October. Any tax overpaid beforehand will be refunded by the ATO on assessment after the end of the 2016-17 financial year.
The ATO has issued eight new withholding schedules to accommodate this change and therefore it is imperative that all employers update their tax schedules in their payroll software immediately to remain compliant.
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Noosa Small Business Accountants & Financial Planners
Stratogen consists of a team of expert small business accountants and advisers dedicated to providing you with the highest quality of taxation, accounting and financial management services.
Additional business services include tax minimisation structuring, business valuations and due diligence, business restructuring and audits. We also provide professional bankruptcy and insolvency advice to Accountants, Financial and Legal Advisers, Corporations and Individuals. Our primary goal is to ensure all parties are treated with respect.
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