On January 25, 2024, the government announced changes to the Individual income tax rates and thresholds from 1 July 2024. These changes remain the same for financial year 2025-2026, with the exception of the following effective from 1 July 2025
Study and Training Support Loan (STSL) thresholds for all STSL tax tables; previously called HELP/HECS.
Annual indexing of repayment income thresholds effective 1 July 2025
All tax table Description changes for 2025-26
Termination Tax - Bona Fide Redundancy and Early Retirement Scheme Treatment. Setup, Tax, Termination Redundancy and ERS tab
The initial Base Tax-free Amount increased from $12,524 to $13,100 and the Additional Tax-Free Amount for Each Year of Service increased from $6,264 to $6,552
Termination Tax - ETP. Setup, Tax, Termination ETP tab
ETP Lower Cap Amount increases from $245,000 to $260,000
An updated Taxation PDL. file, is available below to load into Access WageEasy for tax tables, effective 1 July 2025.
Please watch the video below or read the instructions in their entirety to assist in uploading this Taxation PDL before you commence your first pay run for the Financial Year of 2025-2026.
Note: If you have any termination payments to process for the 2024-2025 financial year, it is important that you process these before updating the tax tables for 2025-2026, or you will be incorrectly applying these termination tax thresholds to the termination.
Prior to updating your new Tax Tables:
Check your version of WageEasy in Help, About Wage Easy Payroll. The latest release of WageEasy is Version 8.1.0.8767. To ensure your end of year processing for 2025 is compliant with current ATO requirements, you should be using at least WageEasy Version 8.1.0.8767. Please upgrade WageEasy if you are not currently using this version.
Back up your WageEasy Database from File, Back Up/Restore, Back Up, Select Backup Location, Add Files to Backup, Select Start.
Tax Tables should be updated prior to processing your first pay to be reported in the new Financial Year (2025-2026).
Download and save the Tax Tables PDL. 25-26 from above to the default Association folder. C:\Users\Public\Documents\Wage Easy Payroll\Association Data\Australia.
To update the Tax Tables in WageEasy follow the below steps:
Go to Setup, Associations, Tax Tables, Edit, Internet tab.
Tick the Tax Tables & Rebates box; all other boxes have to be unticked, Update Now.
On the Update Association Data Wizard screen, Next.
Select the Load from Disk File radio button and click on the ellipses button... go to the location that they were saved to: C:\Users\Public\Documents\Wage Easy Payroll\Association Data\Australia. Select the Tax Tables_2025-26_UPDATE.Pdl, Open, Next.
Finish.
Important: Please read the bullet points below for valuable information.
Once updated, change your pay period ending (PPE) date in WageEasy to a bold date in July 2025, then, from Setup, Tax, Tables you will see in the description of each Tax Table the date (2025-26). Also, note the effective date is now 01/07/2025.
Once you have confirmed that the Tax Tables are updated, you are ready to process your first pay in July 2025. If you are still processing pays in June or are yet to complete your End of Year processing, you need to ensure that you change the Pay Period Ending date back to the appropriate date in June 2025 to complete this.
If you have confirmed that the Tax Tables have been updated by checking Setup, Tax Tables, your employees may still appear to be on (24-25 tax tables) in Employee Details, Payments, Tax, this is due to your actual computer date that is still in a June date. If you process a pay with a PPE date of July the correct rates will be applied. Once your computer is in July the employee record will display correctly.
Repeat the above steps for any additional databases (companies) you may have.