What Australian businesses should know about the updated tax tables
As part of the new JobMaker Plan and the ongoing pandemic response, the Australian Government intends to lower taxes by over $50 billion over the forward estimates, with the aim of supporting low- to middle-income workers, a change which will affect an estimated 11 million individuals.
The Australian Taxation Office (ATO) has updated the tax tables to reflect the 2020-2021 personal income tax thresholds that were passed by parliament last week.
How do the updated tax tables affect businesses?
Based on the list of updated tax tables, businesses must make the necessary adjustments in their payroll processes and systems to ensure that they are withholding the correct amounts for any pay runs processed from 16 November 2020 onwards.
When do I need to implement these changes by?
According to the ATO, as these changes to withholding are made part way through the income year, employers who are unable to implement these changes into their payroll right away will have until 16 November 2020 to do so.
What is Roubler doing to help?
Roubler has applied these tax changes within our system for the convenience of customers, and the new PAYG rates will be calculated automatically based on the date paid of any new pay run created. Businesses are not required to manually import or update tax tables themselves.