By Westcourt Blogger
New PAYG withholding rates will apply to individual taxpayers who earn more than $80,000 from 1 October 2016.
The Government announced in July that the marginal tax rate of 37 per cent, for individual taxpayers, will start at $87,000 instead of the current $80,000. This means the 32.5 per cent tax threshold has increased from $80,000 to $87,000 in the withholding schedules.
From 1 October 2016, if you earn more than $80,000 your employer will reduce the amount of tax being withheld from your pay. If extra tax was withheld before the rate change, employees will be credited when they lodge their 2016-17 income tax return.
New tax tables and payroll software updates will take effect from 1 October 2016 for employers.