The tax withholding tables have now been updated, and reflect the personal tax cuts announced in the 2020 federal budget.

The tax cuts apply to the current 2020/21 financial year, and apply retrospectively to 1 July 2020.   However, tax withholding from 1 July to the start of the new table is not adjusted in the table but will be adjusted and refunded in the taxpayer's personal 2020/21 tax return.

Some information on the adjustments:

- Businesses have until 16 November 2020 to implement the changes in their payroll

- The benefit is not significant for lower incomes, but of more benefit for middle income earners

- The Low Income Tax Offset also increases (to $700) from 1 July 2020 and is reflected in the tables

- The schedules/calculator can be downloaded at https://www.ato.gov.au/rates/tax-tables    (if you use STP these should have already been updated.)