Tax Updates from Tax Block

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The Australian Government has increased the 32.5% tax threshold from $37,001 - $80,000 to $37,001 - $87,000.

What does this mean for employers?

The tax tables have changed for employees who earn over $80,000.

You need to download the updated tax tables from ATO or contact your payroll software provider for the relevant update.

Do employers need to make any other adjustments?

The new tax tables are effective from 1 October 2016." data-share-imageurl="">

The Australian Government has increased the 32.5% tax threshold from $37,001 - $80,000 to $37,001 - $87,000.

What does this mean for employers?

The tax tables have changed for employees who earn over $80,000.

You need to download the updated tax tables from ATO or contact your payroll software provider for the relevant update.

Do employers need to make any other adjustments?

The new tax tables are effective from 1 October 2016. You don’t need to make any other adjustments or refunds tax office will refund any over-payment of tax when employees (and payees) lodge their 2016-17 income tax returns.

Is your tax return due soon?

Whether you use a registered tax agent or complete it yourself, it's important to know when your tax return is due.

If you lodge your tax return through a registered tax agent, your agent will tell you when your return is due.

Remember: If you are using a registered tax agent for the first time or using a different tax agent from last year, you need to contact them by 31 October 2016.

If you complete your tax return yourself and operate your business as a:

  • sole trader, partnership or trust, your tax return is due by 31 October
  • company, you will need to check the due date. If you have any prior year returns outstanding, the due date will be 31 October.

Tips for tax time

Include all your income

Declare all your cash and online sales in your tax return. Income may also include money you have earned from participating in the sharing economy such as renting out a room or driving passengers for a fare.

Don’t miss out on deductions

You can claim tax deductions for most costs you incur while running your business, such as operating expenses like stationery, wages and equipment. If your home is your place of business, you can claim the business use portion of some expenses. You cannot claim deductions for private or domestic expenses.

Check if you have personal services income

If you work for yourself and are paid mainly for your personal efforts, skills or expertise, you may be earning personal services income which can affect the deductions you can claim. 

Instant asset write-off

If you have bought assets for your small business, you can immediately deduct assets costing less than $20,000 each in the year you buy and use them, or install them ready for use.

Check your lodgement

If you are a small business and preparing your own return you must lodge by 31 October. If you are using a registered tax agent they will have different lodgement dates.

Still paying super by cheque or direct deposit?

You need to be paying and reporting super electronically using the new Super Stream format by 28 October 2016.

If you're currently using cheque or direct deposit, you need to make the switch now.

Even if you're already paying by EFT or BPAY directly to super funds, you may still need to make some changes to your reporting to get across the line.

Do you still need to be registered for GST?

If your business circumstances change you may not need to be registered for GST anymore. For example:

  • selling or closing business (you need to cancel your GST registration within 21 days of the sale or closure)
  • business turnover drops below the compulsory threshold, unless you’re a taxi driveR
  • change of business structure, for example from a sole trader to a company

Cancelling your GST registration can save you time and effort because some other registrations automatically cancel at the same time, including:

  • luxury car tax (LCT)
  • wine equalisation tax (WET)
  • fuel tax credits (FTC)

Before cancelling your GST registration, check you’ve finalised all of your tax obligations.

Contact us for any help with your tax matters

Tax Block Accountants, Craigieburn 0423 288 166

Share it now!

The Australian Government has increased the 32.5% tax threshold from $37,001 - $80,000 to $37,001 - $87,000.

What does this mean for employers?

The tax tables have changed for employees who earn over $80,000.

You need to download the updated tax tables from ATO or contact your payroll software provider for the relevant update.

Do employers need to make any other adjustments?

The new tax tables are effective from 1 October 2016." data-share-imageurl="">