Posted on 20 August, 2014 in ATO, News, Employees, Employers, Tax

ATO Latest News: Changes affecting Employers


ATO Latest News: Changes affecting Employers

Are you paying the correct amount of super guarantee?

From 1 July 2014 the super guarantee rate increased from 9.25% to 9.5%.

You may need to contact your accounting software provider to ensure you’re paying the correct rate.

Are you using the correct tax tables?

From 1 July 2014 PAYG withholding has been affected by:

  • The introduction of the Temporary Budget Repair levy (2%) for income over $180,000
  • Medicare levy rate increase to 2.0%.
  • FBT rate temporarily increased to 49%.
  • From the beginning of the next fringe benefits tax (FBT) year, starting 1 April 2015, the FBT rate will temporarily increase from 47% to 49%.
  • The changes to the FBT rate apply across the board, not just for high income earners. The gross-up rates, which are linked to the FBT rate, will also change.
  • Withholding rate where TFN not quoted temporarily increased to 49% from 1 July 2014.
  • You must withhold 49% from any payment you make to an employee if they have not provided you with their TFN or claimed an exemption.
  • Withholding rate where ABN not quoted temporarily increased to 49% from 1 July 2014.
  • If a business supplies you with goods or services and they don’t quote their ABN, you must withhold 49% from the payment you make to them and send the withheld amount to us.

ATO Small Business Newsroom