Release Date: 24-Apr-2015
Author: Justin C
The 2015-2016 Australian Budget includes a number of changes that affect the calculation of payroll for Australian employees. These are summarised below. If you are using our DataPay Enterprise Payroll application then relax knowing that all of these changes have already been programmed into the software and you do not need to install updates.
LUMP SUM D THRESHOLD
- The Lump Sum D threshold will increase from ($9,514 + $4,758) to ($9,780 + $4,891) for each completed year of service from 1 July 2015.
- The ETP cap will increase from $185,000 to $195,000.
- The Whole of income cap remains at $180,000 as this is a non-indexed figure.
CONCESSIONAL SUPERANNUATION CAP (for Employer Contributions and Salary Sacrifice Amounts)
- Will remain at $30,000.
- The cap will remain at $35,000 for employees who will be turning 49 or older on 30 June 2015 (i.e. turning 50 years of age or older during the 2014/15 financial year).
- Will remain at 9.50% up until 30 June 2021.
MAXIMUM CONTRIBUTION BASE
- Will increase from $49,430 per quarter to $50,810 per quarter.
- The Preservation Age for Superannuation and ETPs remains at age 55 for the 2015/16 financial year.
CHANGES TO THE FBT TAX RATES
- Due to the Budget Repair Levy that was introduced on 1 July 2014, this has caused an increase with marginal rate to a high 49%.
- There will be changes to the FBT Gross-up Rates and also to the thresholds available for Non-Profit Organisations.
- The changes have been announced as follows and will be in place from 1 April 2015 - 30 March 2017.
Old Gross up rates 2014/15
Type 1: 2.0802
Type 2: 1.8868
New Gross up rates 2015/16
Type 1: 2.1463
Type 2: 1.9608
For Non-Profit-Organisations, where the employer currently has a $30,000 threshold, this amount will be increased to $31,177 (leaving the pre-tax amount when providing Type 2 Gross-up Benefits at $15,900).
EXAMPLE: Where the employer currently has a $17,000 threshold, this amount will increase to $17,667
(Pre-tax will remain at $9,010 when providing Type 2 Gross-up Benefits)
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