Tax Scale Update
Hot off the press!
The ATO says:
Important information – October 2020 updates
Changes to personal income tax thresholds announced by the Government during the Federal Budget have been incorporated into the withholding schedules and tax tables and will apply to payments made on and from 13 October 2020.
Employers have until 16th November 2020 to update their payroll systems.
You may need to update auto bank transfers too.
Employees will receive any adjustments to allow for the full 2020-21 financial year when they lodge their tax return. There is no need for employers to make adjustments for previous wage payments.
Xero will automagically update the tax scales on Monday 19th October.
If you are bit behind with your processing, the system is clever enough to apply the new rates based on payment date, not data entry date.