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The income tax tables have recently been updated in response to the stage two Personal Income Tax Plan mentioned in the October 2020 federal budget. The government have brought forward this plan and these cuts will now apply for the 2020/2021 financial year. More information can be found here.
We have applied the tax changes in the system and PAYG will automatically calculate accordingly based on the date paid of any new pay run created and will include:
• Weekly, fortnightly and monthly tax tables for Australian residents.
• Tax thresholds for working holiday makers; and
• Tax thresholds for foreign residents.
If you have an unfinalised pay run open which was created prior to 13/10/2020, the new tax rates will not be applied. If you want the new rates to apply to that pay run, you can either:
• delete the pay run and create it again; or
• recalculate every employee's pay.
Also, take note that if you do neither of the above and make a change that requires saving the employee's pay (such as adding an earnings line or deduction, applying a leave request or expense request, etc) this will refresh the employee's pay and the new tax rates will then be used to calculate the employee's PAYG amount.