The Australian Taxation Office (ATO) declared updates to the Pay As You Go Withholding (PAYGW) tax tables, which will take effect on 1 July 2024.
Employers are reminded to ensure that their payroll software is updated with the new rates to withhold and accurately report the correct amount of outstanding tax.
Amendments to income tax rates made by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 will apply to the 2024–25 financial year, resulting in updates to all 15 withholding schedules and 12 tax tables from 1 July, 2024. This includes the study and training support loans schedule and tax tables due to the annual indexing of the repayment income thresholds.
Other changes include the increasing of scales for Schedule 9 – Tax table for seniors and pensioners (NAT 4466) to include full and half Medicare levy exemptions for the three payee categories, and the renumbering of Schedule 29 – Tax table for payments made under voluntary agreements (NAT 3352) to Schedule 10.
Some of the schedules and tax tables have had no material changes but are updated for other reasons including formatting and having up-to-date examples, cap or payment limit amounts.
