The Australian Government has announced further assistance for employees in the 2020 Federal Budget, which will bring forward already approved income tax cuts for employees in the form of lowered PAYG withholding rates, back dated to 1 July 2020.
The ATO has released new tax scales now that bipartisan support has been reached, meaning employees will not need to wait until budget measures are legislated to start receiving more money in their regular pay packet.
Employee pays will be subject to their current PAYG tax withholding rate until the new tax scales are applied, with any remainder to be returned through an employee’s regular 2020-21 EOFY tax return.
As with the release of regular tax scale updates, Sybiz Visipay will prompt users to install new tax rates when processing the first pays for the relevant period. Users can always view the latest downloaded and installed tax rates by hovering over the Tax Scale Status text in the top right corner of Sybiz Visipay, as in the image below:
