Amendment to Tax Rate from 01 October…
| Chris Lindgren
This article was published on the date shown and reflects the rules and rates that applied at the time. Tax, superannuation and payroll rules change — check current ATO guidance or speak to us before acting on it.
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!
To see how withholding, fees and superannuation apply to a current contract rate, use our contractor rate calculator.
