ePayroll Blog


ePayroll eNewsletter - Recent Changes to Tax Rules

16 / 8 / 2012

Recent Changes to Tax Rules

ATO has released some changes to the way tax is calculated on Back payments, Commissions, Bonuses and similar payments – there are other changes that we thought would be useful for you to know

In this newsletter:

Back payments, commissions, bonuses and similar payments tax changes

New PAYG withholding tax tables/p>

Flood Levy no longer applies

Changes to Tax Free Threshold

Changes to Leave Loading


Back payments, commissions, bonuses and similar payments  

There are new changes to how the tax on Back payments, Commissions, Bonuses and Similar payments are being calculated. 

 The tax table in link provided below replaces PAYG withholding tax table - commission payments and Tax table for bonuses and similar payments.

4Find out more


New PAYG withholding tax tables

From July 1, 2012 the new tax tables have been released. ePayroll’s tax calculations were automatically updated and have been in effect since July 1. This has ensured that you continued to withhold the required amounts of tax from payments made to your employees.

4Find out more

Flood Levy no longer applies

The temporary flood and cyclone reconstruction levy (flood levy) no longer applies from 1 July 2012 and the flood levy exemption tax tables have been removed.

 The new tax calculations in ePayroll take into consideration the removal of the flood levy.


Changes to Tax Free Threshold

From 1 July 2012, the tax-free threshold was increased from $6,000 to $18,200. Employees who claim the tax-free threshold will have less tax withheld from their pay, while employees who do not claim the tax-free threshold will have more tax withheld from their pay.

 Remember: An employee can only claim the tax-free threshold from one employer at a time. Generally an employee will claim this from their main source of income.

4Find out more


Changes to Leave Loading

The way that leave loading is taxed has changed from 1 July 2012 as the separate withholding scale for employees who are entitled to leave loading no longer exists. Leave loading paid as a lump sum is now taxed using the tax table for back payments, commissions, bonuses and similar payments including lump sum payments in arrears. If leave loading is paid on a pro-rata basis, then the leave loading is taxed along with regular earnings.


4Find out more


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ePayroll has been providing comprehensive and integrated online payroll solutions to businesses across Australia since 2002. Our state-of-the-art payroll software is widely used - from your local boutique café to a medium sized organisation with over 100 staff. Every business knows that a smarter and more dynamic payroll system can increase organisational efficiency, which leads to higher productivity and effectiveness. Our online payroll programs and applications allow businesses to optimise their daily operations by reducing risky errors whilst boosting compliance and accuracy.

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