Updates to Tax Tables for October 1, 2016

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The ATO recently announced that due to legislative changes, new tax rates will apply for the FY 2016/17 as of October 1. We’ve had a number of enquiries asking we will support these new tax tables and if they’ll be available for October 1.

The answer is yes, the new tax tables will be supported and yes, they’ll be available for October 1.

To help better understand these changes and the impact they’ll have on your payroll, the following FAQ will be of assistance

What tax tables are changing and why are they changing?

You can find full details on the reasons for the tax tables changing and what will be changing on the ATO Website https://www.ato.gov.au/Rates/Tax-tables/?2016emailnotification

When will these changes be available?

You’ll be able to process payroll using the new tax tables from October 1

Will I have to do anything to for the new tax tables to apply?

No, the tax tables will update automatically and be available from October 1.

What will happen to PAYG in pay runs that I’ve already processed for the current financial year?

Nothing will happen to those pay runs. The PAYG associated with those pay runs will remain unchanged. Additionally if you make changes to those pay runs AFTER October 1, those pay runs will still use the tax tables as at the date the pay run was created.

What if I process a pay run after October 1 for a pay period prior to October 1?

That pay run (and any subsequent pay runs) will use the updated tax tables to calculate PAYG.

As always, if you have any questions or feedback on the tax table updates, please let us know in the comments or via support@yourpayroll.com.au

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