Tax Cuts - Change Withholding Amounts
October 15, 2020
The Australian Government has introduced personal income tax cuts that apply from 1 July 2020.
Updated tax tables are now available for you to reflect the tax cuts in employee’s take-home pay.
You must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16th November 2020 onwards.
Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. Your software provider will keep you updated on these changes.
You don't need to make any other adjustments or refunds.
Any ‘over-withholding’ that occurred prior to updating your payroll software or processes will be included in your employee’s income tax assessment at the end of the year.
You can access the tax tables by going to the ATO website HERE
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