Change is Coming – A taxing time for some!
As of 1 October 2016 the tax rates will change. Are you ready?
In the May Budget the government announced changes to individual tax rates for the 2016-17 income year. Legislation dealing with those announced rates was introduced to Parliament on 31 August 2016. As a result a number of tax tables have been updated to apply from 1 October 2016.
The good news is that if you are a Xero subscriber, the new tax rates will automatically update and you won’t need to do anything. Just sit back and enjoy the time you have saved. Likewise, MYOB Live Subscribers will also enjoy the ease of updates provided by MYOB for their cloud based software. However if you haven’t taken your books to the cloud yet, and are using old desktop software such as MYOB Premier v19, an excel spreadsheet or even the good old pen and paper system you will need to manually update or upgraded to include the new tax tables on 1 October.
Another noteworthy snippet of information, which mainly, applied to those needing to do manual upgrades or updates, is that: the pay rate applies for any payments made from 1 October 2016. So, if that payment is made on October 6 and includes hours worked in September or earlier, the new tax rate is applied to those hours from September or earlier as well.
The Legislation hasn’t changed all tax tables and those unchanged will continue to apply. The following tax tables have been updated:
Statement of formulas
|*Statement of formulas for calculating amounts to be withheld||NAT 1004|
|*Statement of formulas for calculating HELP, SSL, TSL and SFSS components||NAT 3539|
|*Weekly tax table||NAT 1005|
|*Fortnightly tax table||NAT 1006|
|*Monthly tax table||NAT 1007|
|*Tax table for daily and casual workers||NAT 1024|
|Tax table for superannuation income streams||NAT 70982|
Other tax tables
If if you any questions or require any assistance, please contact the Team at The Money Edge on 07 4151 8898.
Nicole Sabo | The Money Edge | Bundaberg