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!
