Income Tax Rates

Just a reminder to you and your accounting team that individual tax rates changed from the 1st of July 2008. 

The new tax rates for resident individuals (exc. medicare levy) are now as follows:

Taxable Income	Tax rate	Tax payable at lower threshold
$          0 - $     6,000	0%	-
$   6,001 - $   34,000	15 %	-
$ 34,001 - $   80,000	30%	$   4,200
$ 80,001 - $ 180,000	40%	$ 18,000
Over $ 180,000	45%	$ 58,000

You should ensure that your system is updated to reflect these changes and that the correct amount of tax is being deducted from employee salaries.

If you currently process your wages manually, the new tax rates should be available shortly from the ATO website at http://www.ato.gov.au.  If not, then contact them on 13 28 66.

If you use a computerised accounting package then you should contact your software provider if you have not yet received the updated tax tables.

For those clients using the services of our business partner ADP Employer Services, you will not have to make any adjustments as they will update the tax tables themselves.

Regards

The Quest Team

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Quest Chartered Accountant, St Leonards