2014-2015 Wage changes

2014-2015 Changes to employee wages

  • The ATO is updating its tax tables to help businesses work out their obligations to employees this tax time.

From 1 July 2014 businesses should use the ATO’s new tax tables to calculate how much to withhold from payments to their employees.

Key changes

This year’s tax tables include the following key changes:

  • the increase to Medicare Levy from 1.5 to 2 per cent
  • the introduction of the Temporary Budget Repair Levy for employees earning more than $3,461 per week ($180,000 per year).

Employers

Employers should remember:

  • to use the new tax tables from 1 July 2014 to calculate how much to withhold from payments to employees
  • to withhold 49 per cent of any payment made to an employee if they have not provided their tax file number
  • to withhold 49 per cent from any payment made to a business which supplies goods or services and does not quote their Australian business number.
  • Employers affected by these changes and need the updated tax tables should visit ato.gov.au/taxtables