Client Alert: change to tax withholding tables from 1 October 2016!
The individual tax rates are changing to reflect a measure previously announced in the May Budget which means that the 37% tax rate will apply to income exceeding $87,000 compared to the current threshold of $80,000.
Therefore the new individual marginal tax rates, applying retrospectively from 1 July 2016, will be as follows:
Note: the above rates do not include the Medicare Levy of 2% or the Temporary Budget Repair Levy payable at the rate of 2% on incomes over $180,000.
As a result of this change, new tax tables and payroll software updates will apply from 1 October 2016. New tax tables are available here.
If you use accounting software, please contact your provider for any updates as soon as possible.
Please contact your Ruddicks adviser if you require any assistance with the change to the new tax tables.
