Tax rates drop - changes to PAYG withhold tax rates
As a result of targeted personal income tax changes announced in the last federal Budget, the threshold for the 32.5 per cent tax bracket has increased from $80,000pa to $87,000pa, effective from 1 July 2016. (Previous tax rate of 37 per cent is now applicable on income in excess of $87,000pa).
Commencing 1 October 2016 employers are required to implement these new tax rates for employees earning more than $80,000 per annum. Employees should be notified that any extra tax withheld for the period 1 July to 30 September 2016 will be credited when they lodge their 2016/17 income tax return. See full details.
Superstream – deadline looming
The Australian Taxation Office (ATO) has streamlined the process for small business owners to make superannuation contributions on behalf of their employees. Superstream is the standardisation of this administrative process and it makes life easier for both employers and employees.
The deadline for registering with Superstream has been extended to 28 October 2016 but small business owners are urged to register now. Superstream is mandatory, so the sooner your register, the better. The ATO’s step-by-step employer checklist can also help small businesses with their preparations.
For more information about these tips, contact the SBDC on 13 12 49.