Tax Cuts October 2020

Tax Cuts are beginning from 13 October 2020.

Employers will begin to implement the new tax rates between 13th October and 16th November.

Employees earning over $37,000 per year will begin to gain the benefits of the new rates from a pay date during that period.

As the new rates are backdated to 1st July 2020, any tax saved between July and Oct/Nov, will be paid, by the ATO, once the tax return is finalised in the second half of 2021, July/August for many people.

The Changes

The 19% tax bracket start has risen from $37,000 to $45,000.

The 32.5% tax bracket start has risen from $90,000 to $120,000.


Agoda Hotel Bookings
Sponsor ai10

2020/21 Tax Rates

Taxable income Tax on this income
0 to $18,200 Nil
$18,201 to $45,000 19 cents for each $1 over $18,200
$45,001 to $120,000 $5,092 plus 32.5 cents for each $1 over $45,000
$120,001 to $180,000 $29,467 plus 37 cents for each $1 over $120,000
$180,001 and over $51,667 plus 45 cents for each $1 over $180,000

Source: Australian Taxation Office

0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x