Updated Tax Tables for 2020/21
26/10/2020 by Cameron FinlayThe tax withholding tables have now been updated, and reflect the personal tax cuts announced in the 2020 federal budget.
The tax cuts apply to the current 2020/21 financial year, and apply retrospectively to 1 July 2020. However, tax withholding from 1 July to the start of the new table is not adjusted in the table but will be adjusted and refunded in the taxpayer's personal 2020/21 tax return.
Some information on the adjustments:
- Businesses have until 16 November 2020 to implement the changes in their payroll
- The benefit is not significant for lower incomes, but of more benefit for middle income earners
- The Low Income Tax Offset also increases (to $700) from 1 July 2020 and is reflected in the tables
- The schedules/calculator can be downloaded at https://www.ato.gov.au/rates/tax-tables (if you use STP these should have already been updated.)