November 2020 Newsletter

Please click on the following link to view our monthly accounting/tax newsletter for

November – 2020

We would like to highlight the following articles in this month’s newsletter:-

Tax Relief for individuals

The Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020 received Royal Assent on 14 October 2020. Importantly, the Act brings the personal tax cuts (stage 2) forward from 1 July 2022 to 1 July 2020. From 1 July 2020:

  • the low income tax offset will increase from $445 to $700;
  • the top threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000; and
  • the top threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000.

The low and middle income tax offset (up to $1,080) is also retained for 2020–2021.

Implement new PAYG withholding rates by 16 November

The ATO issued updated tax withholding schedules on 13 October 2020 to reflect the 2020–2021 income year personal tax cuts. As the changes to the withholding rates were 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.

With the changes coming partway through the income year, employees and other payees will receive their entitlement to the reduced tax payable for the entire 2020–2021 income year when they lodge their income tax return.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.