PAYG Tax Table Updates 2020

PAYG Tax Table Updates 2020
14
Oct

Changes to Individual tax rate cuts announced in the Federal Budget have been passed by parliament and will apply to wages made from 13 October 2020. Employers have until 16 November 2020 to adjust their payroll processes and datafiles to reflect the new withholding amounts.

The ATO have incorporated the new thresholds within the withholding schedules and tax tables. Which can be found on https://www.ato.gov.au/rates/tax-tables/#Importantinformationforthisyear

Note that the new tax rates apply from 1 July 2020, however the ATO will not allow for retrospective changes to withholdings on wages and salaries. Employees will have to lodge their 2021 income tax return to receive the benefit of additional tax withheld. Non-wage earners may vary their September PAYG Withholding instalments to benefit from the tax rate cuts.

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Yours Sincrerely, 


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