15th August 2024 | Tax
As of July 1st, 2024, the Australian Government will adjust income tax rates and thresholds, resulting in tax cuts for workers.
Small business employers need to make sure they have the latest tax tables from the Australian Tax Office and that their payroll software is updated to withhold the correct amount of tax.
The changes affect several tax tables, including those for regular payments, Medicare levies, superannuation contributions, study/training support loans, and specific industries or payment types.
What does this mean for business owners?
For business owners, the changes to income tax rates from July 1, 2024, mean they need to take a few important steps to stay compliant:
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Update Payroll Systems:
Business owners must ensure their payroll software is updated with the new tax tables. This will help you withhold the correct amount of tax from employee wages, avoiding potential issues with under or overpayments. -
Review Tax Obligations:
With the changes to tax rates and thresholds, business owners may need to adjust how they calculate employee taxes, including Medicare levies, superannuation contributions, and any industry-specific requirements. -
Communicate with Employees:
It’s also a good idea to inform employees about the tax changes and how this might affect their take-home pay. This transparency can help prevent confusion and build trust.
Overall, staying proactive about these updates will help business owners manage their payroll more effectively and remain compliant with the new tax regulations.
Contact our Accountants at Ax3 on 039995 7261 or email info@Ax3.com.au
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