BUSINESSES GIVEN A MONTH TO IMPLEMENT UPDATED ATO TAX TABLES

The changes to personal income tax thresholds identified in the Federal Budget have been passed by Parliament and the ATO has subsequently updated it’s tax tables and withholding schedules.

The changes will apply to payments made on and from 13 October this year, with employers now given until mid-November to implement the adjustments.

“As the changes to withholding are made part way through the income year, employers and other payers who are unable to immediately implement these changes into their payroll will have until 16 November 2020 to do so,” the ATO said.

The tax changes have been backdated to 1 July this year however, the tax table changes do not take into account any over-withheld amounts that individual taxpayers have paid since the start of the financial year.

This amount will be subsequently be incorporated into the tax assessment of an individual at the end of the 30 June 2021 income tax year.

View the updated tax tables here.