From 1st October the ATO is updating its tax tables!
In May the government announced there would be changes to individual tax rates for the 2017 financial year. These changes were delayed due to the federal election.
The ATO have now announced the relevant legislation regarding the new tax rates will apply from the 1st October.
How will this affect you?
If you are an employer, from 1st October, you must use the updated your tax tables. The ATO, in preparation have updated a number of tax tables. This is mainly because the 37.5% tax rate now applies over $87,000 (previously $80,000) levy reduction threshold.
What’s changing?
Statement of formulas
- Statement of formulas for calculating amounts to be withheld
- Statement of formulas for calculating HELP, SSL, TSL and SFSS components
Regular payments
- Weekly tax table
- Fortnightly tax table
- Monthly tax table
- Tax table for daily and casual workers
Medicare Levy
- Weekly tax table with no and half Medicare levy
- Fortnightly tax table with no and half Medicare levy
- Medicare levy adjustment weekly tax table
- Medicare levy adjustment fortnightly tax table
- Medicare levy adjustment monthly tax table
Superannuation Payments
- Tax tables for superannuation income streams
Other Tax Tables
- Tax table for actors, variety artists and other entertainers
- Tax table for annuities
- Tax table for unused leave payments on termination of employment
- Tax table for back payments, commissions, bonuses and similar payments
- Tax table for seniors and pensioners
One of the important things here is that the updated tax tables don’t include any catch-up component for the portion of the 2017 financial year which has already passed by 1 October.
Individuals affected will get the full benefit of the tax changes when their income tax return is assessed for the year.
You can find a full list of the updated tables here.
