The federal budget announced they would bring forward the reduction in the individual tax rates to 1 July 2020. In this video we show
the "cash boost" given to employees earning less than $90,000 for the 4 months, July - October, adjusted in October.
Bringing forward the personal income tax plan will:
• Increase the top threshold of the 19% tax bracket to $45,000 (from $37,000)
• Increase the top threshold of the 32.5% tax bracket to $120,000 (from $90,000)
Employers have until mid-Nov to update their tax tables in their payroll. Xero updated this automatically on 22 October.
As the tax reduction applied from 1 July 2020 it means 'technically' employees have overpaid their taxes from 1 July until the tax tables
are updated. They don't lose this amount as they will then get a refund when they lodge their 30 June 2021 tax return, but
if you want to give your team a "cash boost" now and not to have to wait until 30 June 2021, you can adjust manually the PAYG
withholding to update the tax withheld to the new lower tax rate. Here's how:
Please don't hesitate to contact the team at Smart Business Solutions on 03 5911 7000 if you require any
On 31 March 2020, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.
With the borders between the State and Territories all but open and 2021 in sight, there is a hunger for a return to normal. With Australia's desire to ‘get on with things,' sentiment reached its highest level since November 2013 and Christmas spending is expected to be consistent with previous years.
Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.