07 / 9 / 2016
The Australian Taxation Office (ATO) has confirmed final 2016/2017 tax coefficients to be in effect from 1 October 2016.
This will mean that we will receive and apply the coefficients and new tax rates from payrolls with an accounting date of 1/10/2016 or beyond.
The Budget (Bill) has not passed through the House of Representatives; however it has been written that new schedules are to be issued by the ATO.
There are changes to only one bracket, from $80,001 to $87,000 – the rest remain the same.
Tax Already Paid
The ATO has advised that any tax that may have been overpaid by employees will be refunded when they lodge their tax return. This may be when they lodge in 2017 or 2018, due to referred revenue impacts.
Employees and clients are not able to reduce the tax withheld or make adjustments unless instructed by the ATO as a tax variation.
Is any action required?
No action is required as ePayroll has already accommodated the required changes.
Employees that have been affected will be able to claim any tax differences in their 2017 tax returns, subject to their personal circumstances.