The 2017-2018 Australian Budget will affect the calculation of payroll for Australian employees. This section will outline a number of tax changes that will need to be made for the financial year. 

SUPERANNUATION

·         Maximum super contributions base increases from $51,620 to $52,760 per quarter.

SUPERANNUATION PERCENTAGE

·         Will remain at 9.50% up until 30 June 2021.

ETP CAP

·         Life Benefit termination payment ETP cap will increase from $195,000 to $200,000.

·         Death Benefit termination payment ETP cap will also increase from $195,000 to $200,000.

The Whole of Income cap remains at $180,000 as this is a non-indexed figure.

If you are using our DataPay Payroll application you can sit back, relax and leave the above amendment to us as these changes have already been programmed into the software.

REDUNDANCY: TAX-FREE LIMIT

·         Tax-free base amount increases from $9,936 to $10,155 for the first year.

·         Tax -free amount for completed years of service increases from $4,969 to $5,078.

Our DataPay Payroll application can calculate the Redundancy Tax-Free Limit through the Termination Wizard.

CONCESSIONAL SUPERANNUATION CAP (for Employer Contributions and Salary Sacrifice Amounts)

·         For all individuals the cap will be $25,000.

CO-CONTRIBUTIONS (for Personal after Tax Super Contributions)

The Government Co-Contribution scheme will increase from 1 July 2017.

·         The lower income threshold will be $36,813.

·         The higher income threshold will be $51,813.

·         The maximum Co-Contribution will remain at $500 for 2017-2018.

PAYROLL TAX THRESHOLD

Most states will remain the same except for VIC and SA. Kindly refer to tables below:

State

Rate

Regional Rate

Threshold

ACT

6.85%

 

2,000,000

NSW

5.45%

 

750,000

NT

5.5%

 

1,500,000

QLD

4.75%

 

1,000,000

TAS

6.1%

 

1,250,000

VIC

4.85%

3.65%

625,000

WA

5.5%

 

850,000


South Australia

Annual Australian Taxable Payroll

 

Does not exceed $600,000

Exceeds $600,000 but not $1,000,000

Exceeds $1,000,000 but not $1,500,000

Exceeds $1,500,000

1 July 2017

Nil

2.5%

2.5% - 4.95%

4.95%

 

2017-18 ANNUAL WAGE REVIEW

The Fair Work Commission announced their decision for the 2017-18 Annual Wage review:

·         The national minimum wage will increase by 3.3% to $694.90 per week, with the minimum hourly rate rising to $18.29 per hour.

·         Rates in Modern Awards will also increase modern award minimum wages by 3.3% (weekly wages will be rounded to the nearest 10 cents).

PENALTY RATE CUTS IN MODERN AWARDS

The Fair Work Commission also announced their decision to vary certain penalty rate provisions in some awards for a number of industries. This will affect some permanent and casual employees working on Sundays, public holidays, evenings or after midnight. Changes will apply to:

·         General Retail Industry Award 2010

·         Fast Food Industry Award 2010

·         Restaurant Industry Award 2010

·         Pharmacy Industry Award 2010

·         Hospitality Industry Award 2010

HIGHER EDUCATION LOAN PROGRAM (HELP), STUDENT START-UP LOAN (SSL) AND TRADE SUPPORT LOAN (TSL) CHANGES

2017-2018 repayment income threshold and rates for HELP, SSL, ABSTUDY SSL AND TSL:

Repayment Income

Repayment Rate

Below $55,874

Nil

$55,874 - $62,238

4.0%

$62,239 - $68,602

4.5%

$68,603 - $72,207

5.0%

$72,208- $77,618

5.5%

$77,619 - $84,062

6.0%

$84,063 - $88,486

6.5%

$88,487 - $97,377

7.0%

$97,378 - $103,765

7.5%

$103,766 and above

8.0%


IF YOU HAVE ANY QUERIES PLEASE DO NOT HESITATE TO GIVE US A CALL ON 1-800-048-006.

For more information please visit the Australian Tax Office (ATO) website through our Useful Links page.