Tax Rate Changes Effective 1 October 2016
Tax rates will change effective 1 October 2016.
In the May Budget the Federal Government announced changes to individual tax rates for the 2016-17 income year. Legislation dealing with those announced rate cuts was introduced to Parliament on 31 August 2016. As a result a number of tax tables have been updated.
The tax tables cover the full financial year however do not contain any catch up component for the first quarter. Individuals affected will receive the full benefit of the tax changes when their 2016-17 tax returns are completed and assessed.
What does this mean for you?
If you are using an online accounting system such as Xero, Quickbooks Online or MYOB Essentials the software providers will install an update to reflect the new tax tables. You can process your payroll as usual however be aware that the net amounts may be different to previous payrolls.
If you are using MYOB AccountRight Live or MYOB Classic MYOB will shortly release updates that you will need to download and install from your my.myob login.
Additionally MYOB will be releasing a security update for MYOB Classic files. You will need to upgrade to version 19.13
If you have set up automatic payments for your employees you will need to review the net pay & make adjustments prior to the first pay in October.
As always if you need assistance with any of these updates please contact the team at Successful Alliances.