14 October 2020
The Australian Government has introduced personal income tax cuts that apply from 1 July 2020.
Updated tax tables are now available for you to reflect the tax cuts in employee’s take-home pay.
You must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16 November onwards.
Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. Your software provider will keep you updated on these changes.
You don’t need to make any other adjustments or refunds.
Any ‘over-withholding’ that occurred prior to updating your payroll software or processes will be included in your employee’s income tax assessment at the end of the year.
Tax tables that were updated and apply from 13 October 2020
The following tax tables were updated and apply from 13 October 2020.
Statement of formulas
Regular payments
| *Weekly tax table | NAT 1005 |
| *Fortnightly tax table | NAT 1006 |
| *Monthly tax table | NAT 1007 |
| *Tax table for daily and casual workers | NAT 1024 |