Due to the Governments proposed tax cuts being brought forward and backdated to 1 July 2020, we have updated our 2020/2021 tax rates table for your information.
Timeline of Events
6 October 2020 – Introduction of proposed tax cuts brought forward at the 2020 Budget Release.
Tax cuts back dated to be effective from 1 July 2020.
9 October 2020 – Tax cuts passed through parliament.
16 November 2020 – Cloud payroll software would have automatically updated by this date. All payroll adjustments need to be made to be reflected in employees take home pay no later than 16 November onwards.
Employers now need to make adjustments in their payroll processes and systems in order for the tax cuts to be reflected in employee’s take home pay. Employers must make sure they are withholding the correct amount from salary or wages paid to employees for any pay runs processed in their system from no later than 16 November 2020 onwards.
If you don’t have automated cloud based software, please ensure this has been updated manually.
If you would like a payroll review, please contact our team on (08) 9327 1777.