Legislation Updates

Stay informed with legislative changes

 

2019/2020 Tax Changes Effective 1 July 2019
 

The 2019-2020 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 2019-2020 financial year


Maximum Contribution Base

  • Annual superable salary increase from $216,120 to $221,080.
  • Quarterly Maximum super contributions base increases from $54,030 to $55,270.
  • Maximum annual SG contribution increase from $20,531.40 to $21,002.60.
  • Maximum quarterly super guarantee contribution increases from $5,132.85 to $5,250.65.

Superannuation Percentage

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

ETP Cap

  • Life Benefit termination payment ETP cap will increase from $205,000 to $210,000
  • Death Benefit termination payment ETP cap will also increase from $205,000 to $210,000

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

If you are using our DataPay Payroll application these changes have already been programmed into the software.

Redundancy: Tax Free Limit

  • Tax-free base amount increases from $10,399 to $10,638 for the first year.
  • Tax -free amount for completed years of service increases from $5,200 to $5,320.

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 remains at $25,000 regardless of age.
 

Co-contributions (for personal after tax super contributions)

The Government Co-Contribution scheme will increase from 1 July 2019.
  • The lower income threshold will be $38,564.
  • The higher income threshold will be $53,564.
  • The maximum Co-Contribution will remain at $500 for 2019-2020.

Non-Concessional Superannuation Cap (for personal after tax super contributions)

The general transfer balance cap will remain at $1.6m for 2019-20.

Payroll tax rates and thresholds

Most states will remain the same with the exception of NSW, TAS, VIC and WA 2018-2019. Please exercise caution when calculating payroll tax liability for the month of July 2019 onwards. We will make the changes to the payroll tax reports as they become available or are released by the State governing body.
 
State Rate Regional Rate Threshold
ACT 6.85%   2,000,000
NSW 5.45%   900,000
NT 5.50%   1,500,000
QLD 4.75%   1,100,000
TAS 4.00% or 6.10%   1.25 Mil - 2 Mil or over 2 Mil
VIC 4.85% 2.425% 650,000
SA 2.50% or 4.95%   600,000 - less 1 Mil over 1.5 Mil
WA 5.50%   850.000

 

TAS Does not exceed $1.25 million Exceeds $1,250,001 million but not $2 million Exceeds $2,000,001  
1 July 2018 Nil 4.00% 6.10%  
SA Does not exceed $600,000 Exceeds $600,000 but not $1 million Exceeds $1 million but not $1.5 million Exceeds $1.5 million
1 July 2018 Nil 2.5% 2.5% - 4.95% 4.95%
WA More than $850,000 but less than $7.5 million $7.5 million or more but not exceeding $100 million More than $100 million but not exceeding $1.5 billion More than $1.5 billion
1 July 2018 5.50% 5.50% 6.00% 6.50%
 

2019-20 Annual Wage Review

The Fair Work Commission announced their decision for the 2019-20 Annual Wage review:

  • The national minimum wage will increase by 3.00% to $740.80 per week, with the minimum hourly rate rising to $19.49 per hour.

The increase only applies to employees that get their pay rates from:

  • The national minimum wage
  • A modern award or
  • A registered agreement (in some cases)
The increase won’t affect employees who are already getting paid more than the new minimum wages.

Study and Training Support Loans - Rates and Threshold for 2019-2020 Financial Year

There is no longer a separate SFSS tax table (includes HELP, SSL, ABSTUDY SSL, TSL, VSL and SFSS effective from 1 July 2019):

Repayment Income Repayment Rate
Below $45,881 Nil
$45,881 - $52,973 1.0%
$52,974 - $56,151 2.0%
$56,152 - $59,521 2.5%
$59,522 - $63,092 3.0%
$63,093 - $66,877 3.5%
$66,878 - $70,890 4.0%
$70,891 - $75,144 4.5%
$75,145 - $79,652 5.0%
$79,653 - $84,432 5.5%
$84,433 - $89,498 6.0%
$89,499 - $94,868 6.5%
$94,869 - $100,560 7.0%
$100,561 - $106,593 7.5%
$106,594 - $112,989 8.0%
$112,990 - $119,769 8.5%
$119,770 - $126,955 9.0%
$126,956 - $134,572 9.5%
$134,573 and above 10.0%

If you have any queries please do not hesitate to contact the Datacom Support Team on 1-800-048-006. Should you require further information please visit the Australian Tax Office (ATO).

 

Find out more, visit our legislation archives

2018/2019 Tax Changes Effective 1 July 2018

The 2018-2019 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.

 

2017/2018 Tax Changes Effective 1 July 2017

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.

Australian Tax Changes Effective 1st October 2016

This section will outline a number of tax changes that will need to be made for the financial year.

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