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businesstaxFollowing the Government introducing to Parliament various Budget measures including an increase in the 32.5% tax band from $80,000 to $87,000, the Australian Taxation Office has updated its tax withholding tables.  Employers should be aware of this and ensure that any payment to employees after 1 October 2016 include the correct tax withholding.

Income payments covered include:

  • salary, wages, allowances and leave loading paid to employees
  • paid parental leave
  • directors' fees
  • payments to labour-hire workers
  • government education or training payments
  • compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).

Employers may need to update their software packages, or if calculating tax withholding manually, refer to the new withholding tables or use the Tax Withheld Calculators available on the ATO website.

Should you require any assistance in applying or using the new tables, please contact your usual Hanrick Curran adviser on 07 3218 3900.

 

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.