Australia’s June 30 financial year end has arrived. With it brings lots of tax changes. This is due to the end of the flood levy, the introduction of carbon tax and simplification of the Tax Scales offered by the Australian Taxation Office (ATO).
Here’s the changes we made to our online accounting software:
Flood Levy removed
From 1 July 2012, the temporary flood and cyclone reconstruction levy (flood levy) including exemptions from paying the flood levy will no longer apply. The flood levy has been removed from the 2012-13 tax tables.
Changes to the Tax-free Threshold affecting your employees
Tax free Threshold rises to $18,200. This means that employees who claim the tax-free threshold will have less tax withheld from their pay.
Changes to Leave Loading
There is no longer a separate withholding tax scale for employees who are entitled to leave loading. Tax Scale 7 now appears as Tax Scale 2 which is defined by the ATO as "Where the payee claimed the tax-free threshold with or without leave loading"
Wishing you a prosperous new financial year.