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GPAUS: Global Payroll Australia Legislative Changes for Tax Year 2021-2022 (Doc ID 2762432.1)

Last updated on DECEMBER 31, 2021

Applies to:

PeopleSoft Enterprise HCM Global Payroll Australia - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Details

The intent of this document is to describe solutions for problems or questions related to Global Payroll Australia Legislative Changes for Tax Year 2021-2022. This solution applies to customers on PeopleSoft Release 9.2. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

(Last updated 2nd June 2021) Summary Table - see below for details:

Please see table below for details.

 
Legislative Change Effective Date Additional Info P1 Patch Fix Target Date Targeted into PUM Image/Patchset
FBT RATES AND THRESHOLDS CHANGES EFFECTIVE 1ST OF APRIL 2021 1st April 2021 The FBT rate, bench mark interest rate and reportable fringe benefits for the year ending 31st March 2022 has changed and the changes are to be incorporated.

<Bug 32647607>

PRP: https://support.oracle.com/epmos/faces/PatchResultsNDetails?releaseId=27001300090200&requestId=24172106&patchId=32647607&languageId=0&platformId=2000
 

Bug 32647607

PUM Image 39
FISCAL YEAR BUDGET CHANGES EFFECTIVE 1ST OF JULY 2021FISCAL YEAR BUDGET CHANGES EFFECTIVE 1ST OF JULY 2021   1st July 2021

The Federal Budget did not result in any changes to tax rates or income thresholds for 2021-22 income year.

The extension of the low and middle income tax offset is only claimable when individuals lodge their income tax return.  There are no changes to Schedule 1 – Statement of formulas for calculating amounts to be withheld (NAT 1004) nor to the regular tax tables.


The updates that were made on 13 October 2020 to schedule 1 and the regular tax tables will continue to apply to payments made from 1 July 2021.
 
For the 2021–22 income year ATO will be updating Schedule 8 – Statement of formulas for calculating study and training support loans components (NAT3539) and study and training support loans weekly, fortnightly and monthly tax tables due to the annual indexing of the repayment income thresholds.
 

 <Bug 32894939>

PRP Patch:

https://support.oracle.com/epmos/faces/PatchResultsNDetails?releaseId=27001300090200&requestId=24279401&patchId=32894939&languageId=0&platformId=2000

 

PUM Image 39
VICTORIA STATE BUDGET EFFECTIVE 1ST OF JULY 2021  1st July 2021

Victorian Government announced the few initiatives that are favourable for taxpayers. Details mentioned underneath
 
Introduction of a mental health and wellbeing surcharge
The Bill amends the Payroll Tax Act 2007 (Vic) to introduce a new surcharge on wages paid in Victoria, to be known as the 'mental health and wellbeing surcharge'.

The surcharge, which will apply from 1 January 2022, is intended
to be charged at the following rates:
• 0.5% for employers (or groups of employers) with national payrolls above $10 million a year; and
• 1.0% for employers (or groups of employers) with national payrolls above $100 million a year.
 
Payroll tax amendments
• Increase in the tax-free threshold for payroll tax from $650,000 to
$700,000 brought forward to 1 July 2021
• Decrease in the payroll tax rate for regional employers from 2.02% to 1.2125% brought forward to 1 July 2021
• Reduced compliance burden for businesses with an annual payroll tax liability of $100,000 or less. From 1 July 2021, these businesses can move from monthly to annual reporting and payment of payroll tax. This is an increase from the previous threshold of $40,000

 <Bug 32950103>

PRP Patch:

https://support.oracle.com/epmos/faces/PatchResultsNDetails?releaseId=27001300090200&requestId=24279401&patchId=32894939&languageId=0&platformId=2000

PUM Image 39
LEGISLATIVE CHANGES OF CHILD SUPPORT PROTECTED EARNINGS AND VICTORIA MENTAL HEALTH AND WELLBEING SURCHARGE EFFECTIVE 01 JAN 2022  1st Jan 2022  The mental health and wellbeing surcharge (surcharge) is a new revenue
mechanism introduced by State of Victoria to provide stable and dedicated
form of additional funding to aid and strengthen the mental health system.
Below are the key requirement from state of Victoria for the calculation of
Mental Health and Wellness surcharge.
 - All Victorian Employers or Designated Group Employer (DGE) has to pay 0.5%
of Victorian taxable wage over threshold of 10 million a year.
 - All Victorian Employers or Designated Group Employer (DGE) has to pay 1%
of Victorian taxable wage over threshold of 100 million a year.
 - Mental Health Surcharge is to be paid along with payroll tax by all the
eligible employers.

 <Bug 33562822>

PRP Patch:
https://support.oracle.com/epmos/faces/PatchResultsNDetails?releaseId=27001300090200&requestId=24538427&patchId=33562822&languageId=0&platformId=2000

 PUM Image 41
         
         
         
         
         
         

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