After Parliament passed the laws to bring forward tax cuts effective from 1 July 2020, the ATO has now updated the various withholding tables, which can be accessed here.
The updated tables apply to payments made from 13 October 2020. However, employers and other payers who are unable to immediately implement these changes into their payroll will have until 16 November 2020 to do so.
It was initially suggested that the full year’s tax cut could be condensed into withholding for the remainder of this financial year. However, that has not happened. Accordingly, for many employees, the additional tax withheld so far this financial year will manifest as an additional refund upon lodging their 2020/21 income tax return.
Talk to your trust Nexia advisor for any assistance with updating your payroll systems.