The ATO has now updated the tax withholding schedules to reflect the 2020–21 income year personal tax cuts which have passed through parliament.
Updated schedules are available at ato.gov.au/taxtables
Employers 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 onwards.
XERO, MYOB and Quickbooks have all announced that they are working on releasing updates to incorporate the new tax tables and will have them in place before the 16 November deadline.