Following the announcement made in the 2009 Federal Budget, new tax thresholds have now been introduced throughout Australia as of 1 July 2010. This means that new rates now apply to income tax payments made on behalf of employees.
Employers are being reminded to apply the new tax rates when withholding tax for their employees, starting from the beginning of the 2010/11 financial year. These new rates are a result of a change in the income tax thresholds, slightly reducing the amount of tax paid by individuals.
While these new rates will apply to most individuals employed throughout Australia, there are a few exceptions to the changes, including rates paid on bonuses and commissions, and for the horticulture and shearing industries.
Copies of the new tax tables for weekly, fortnightly and monthly payments, as well as for casual employees, are now available to accountancy firms nationwide, and employers are being encouraged to obtain copies of these tables, to ensure that the new rates are being applied correctly.