Following on from a previous Federal Government Budget announcement the tax rates for individuals have changed for the 2016/17 year.
The Government has announced that from 1 July 2016 the marginal tax rate of 37 percent will start at $87,000 instead of $80,000. Individuals with a taxable income of more than $80,000 will benefit from this change.
For employers new tax tables and payroll software updates will apply from 1 October 2016.
If someone earns more than $80,000, from 1 October the employer will reduce the amount of tax being withheld from the pay. Any extra tax paid before the change is implemented will be credited when the persons individual 2017 tax return is lodged.
The relevant software provider should provide updates where applicable, or the new tax tables can be downloaded from the tax office site.
If you have any questions in regards to this change we recommend you seek professional advice.