Following Budget night and the passing of associated legislation, the ATO has now updated its withholding schedules and tax tables to reflect the reduction in personal tax rates.
The updated withholding rates apply from 13 October 2020 and employers should implement the new rates by 16 November.
The reduced rates apply to the year end 30 June 2021 however the amended withholding schedules do not take into account any higher amounts of withholding between 1 July 2020 and 13 October 2020. Where higher amounts have been withheld during this period, then employees will receive the refund as part of their 2021 Tax Assessment.
The updated withholding schedules can be seen at updated tax tables here.
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