Targeted personal income tax relief.
Updated: Jul 1, 2019
In the May Budget the government announced changes to individual tax rates for the 2016-17 income year. Legislation dealing with those announced rates was introduced to Parliament on Wednesday 31 August 2016. The Government has announced that from 1 July 2016, for individual taxpayers, the marginal tax rate of 37 per cent will start at $87,000 instead of the current $80,000.
To benefit from this change your taxable income must be more than $80,000. Read about how this affects you here.
The ATO are now confident that the bill (Treasury Laws Amendment (Income Tax Relief) Bill 2016) will be passed by both houses. The new tax tables and payroll software updates will apply from 1 October 2016 (if the Bill is passed). The formulas do not include any catch-up component for the portion of the year which has already passed. You can find out about the progress of a bill here.
You will be notified by email when the new Version 16.10 (which also includes the new tax tables) will be available for download after the Bill has been passed. Information about what is in Version 16.10 is available here.