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 $260,000
Note: If you have any termination payments to process for the 2024-2025 financial year, it is important that you process these before updating the tax tables for 2025-2026, or you will be incorrectly applying these termination tax thresholds to the termination.
Prior to updating your new Tax Tables:
Check your version of WageEasy in Help, About Wage Easy Payroll. The latest release of WageEasy is Version 8.1.0.8767. To ensure your end of year processing for 2025 is compliant with current ATO requirements, you should be using at least WageEasy Version 8.1.0.8767. Please upgrade WageEasy if you are not currently using this version.
Back up your WageEasy Database from File, Back Up/Restore, Back Up, Select Backup Location, Add Files to Backup, Select Start.
Tax Tables should be updated prior to processing your first pay to be reported in the new Financial Year (2025-2026).
To update the Tax Tables in WageEasy follow the below steps:
The new Tax Tables_2025-26_UPDATE.Pdl has been saved to the “Update PDL” folder in your Home Drive in the private cloud environment. To run the tax table update on each database, please follow the instructions below:
From Setup, Associations, select Tax Tables and Edit. Click on the Internet Tab at the top of the screen and ensure that only the Tax Tables & Rebates box is ticked. Select Update Now and Next. Load from disk file and browse for the tax file by selecting the ellipses button [...].
Select the Tax Tables_2025-26_UPDATE.Pdl file from Home drive:
CWEP######$(\\ausydwepcfs01 or ausydwepcfs02, Home \ Update PDL
Note: (##### is your 6 digit customer ID)
Open, select Next, and 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 (PPE) 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.