The ATO has issued new PAYG withholding tax schedules to reflect the lower personal tax rate. Changes will increase the middle income tax bracket from $80,000 to $87,000. The rate will now be 32.5% instead of 37%. Employers will be required to lower the amount of tax withheld for affected taxpayers effective from 1 October 2016. Any tax overpaid beforehand will be refunded by the ATO on assessment after the end of the 2016/17 financial year. Good news for those in this bracket!
From 1 July 2017 Individuals with an adjusted taxable income above $250,000 will pay an additional 15% tax on contributions that aren’t in excess of their annual superannuation contribution cap. Additionally, the mandatory super contributions cap will be lowered to $25,000 for all individuals. (They are currently $30,000 for those under age 50; $35,000 for those aged 50 and over.) Legislation is currently being developed for this measure. As we hear more we will update you…
ANDREW Barr says the 2016/17 ACT Budget will provide further support for Canberra businesses by lifting the payroll tax threshold to $2 million. “This latest change means that any Canberra business that generates less than $2 million per year will be exempt from payroll tax,” Andrew said. “This means about 40 local businesses will no longer have to pay payroll tax. (These are businesses with payrolls of between the current threshold of $1.85m and the new threshold of $2.0m, who are currently paying the tax). “In addition, lifting the payroll tax threshold will give a $10,000 a year tax cut to every business with a payroll of over $2m. Since 2012, the total amount of tax the ACT Government has removed for a firm with a payroll over $2m is $34,250.”
Super concessional contributions for financial year 15 – 16 As the end of another financial year is fast approaching, it’s a good time to check your superannuation contributions. The concessional or pre-tax contributions capped amounts are: * $30,000 cap for anyone aged 48 or under as at 30 June 2015. * $35,000 cap for anyone aged 49 year or over as at 30 June 2015. It is important to note the 9.5% Superannuation Guarantee is also included in the cap. For all PayMe clients please check your superannuation contribution total provided on your payslip and also check your current balance with your superfund as they will be different due to timing of payments. Once you have your current balance and want to reach you full cap amount PayMe’s salary experts can then assist you to reach this amount.