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Change to ATO PAYG Withholding Rates

Written and accurate as at: Sep 27, 2016 Current Stats & Facts

EMPLOYERS TAKE ACTION

The ATO has confirmed that it has issued new PAYG withholding tax schedules to reflect the lower personal tax rate announced in the budget. 

The changes will increase the middle income tax bracket (the threshold at which the 37% rate commences) from $80,000 to $87,000.

Employers will be required to lower the amount of tax withheld for affected taxpayers to factor in the new lower tax rate effective from 1 October.

Please note that these new rates do not take into account any tax overpaid on withholding prior to 1 October. This will be refunded by the ATO on assessment after the end of the 2016/17 financial year.

If you are using an online platform like Xero for your accounting and payroll administration, your software will automatically update and there is nothing further you need to do!

If you are using a desktop based accounting package, please ensure you have installed any required updates for the changes to take effect.

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