The ATO has released new PAYG Withholding tables to apply from 1/10/16 to reflect tax cuts currently before parliament. Although these cuts have not yet officially been passed into law, it appears to be a formality. The tax cut applies to employees earning greater than $80,000. For those earning more than $87,000 the tax cut is worth $315 per annum and reduces for those earning between $80,000 and $87,000. There is no change for anyone earning less than $80,000.
Employers need to update their payroll systems to incorporate the new tax tables from October 1. No adjustment will be made for the first quarter of the year through payroll. Individuals will receive the remaining benefit of the tax cut when they lodge their 2017 Tax Return.