NEW TAX CUTS FOR 2020-2021
Some payroll software providers took a longer time to update their software than competitors, resulting in some ‘over-withholding’ of PAYG for the July to October period.
However, any excess amounts withheld from gross wages can be refunded to the individual, through their Income Tax Assessment for 2020/21.
Below are the new individual tax rates for 2020/21. The most significant change was for the 32.5% Tax bracket, where the ceiling amount has risen from $90,000 to $120,000. The variations in tax payable and ceiling amounts, are highlighted in bold print.
RESIDENT TAX RATES 2020-2021 |
|
|---|---|
| Taxable income | Tax on this income |
| 0 – $18,200 | Nil same as before |
| $18,201 – $45,000 (was $37,000) | 19 cents for each $1 over $18,200 (same as before) |
| $45,001 – $120,000 (was $37K - $90K) | $5,092 (was $3,572) plus 32.5 cents for each $1 over $45,000 (was $37K) |
| $120,001 – $180,000 (was $90K - $180K) | $29,467 (was $20,797) plus 37 cents for each $1 over $120,000 (was $90K) |
| $180,001 and over | $51,667 (was $54,097) plus 45 cents for each $1 over $180,000 (same as before) |