The recent 2021 Federal Budget announced various incentives designed to ease the burden of COVID 19 for businesses and individuals; you can read our budget re-cap here.

One of the major announcements that effects businesses and employees alike is the introduction of tax cuts for employees, which will see most people pocket more of their wage each pay day. New PAYG withholding tax tables have been released by the ATO and were backdated to be made effective from the 1st of July 2020. Employers will need to be familiar with the new thresholds and initiate the changes for payments made on and from the 13th of October 2020.

However, software providers are continuing to update their platforms to accommodate for the change, and employers have been granted until the 16th of November to ensure they are withholding the correct amount from their employees’ pay based on the new rates.

Since the changes to the personal income tax thresholds were implemented part way through the financial year, any ‘over-withholding’ that may have occurred during the transition period, or until businesses had the chance to apply the new rates will be included in the employee’s income tax assessment for 2021. No backdated or additional payments will need to be made by employers.

– Catherine Stojcevska & Nicola Dawson

Posted 26.10.2020

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.

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I'm really enjoying the personalised touch and service I'm receiving from Ian and Siarn. Always prompt, professional and happy to answer my silly questions and help me stay informed. I've been a client of Bill's and HQB for about 20 years. Since Bills retirement he passed me on to Ian and the quality of the service just seems to keep getting better. HQB comes highly recommended by me.
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Trent Allen
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Alastair Fysh
04:31 25 May 20
HQB accountants have been an asset to our business. They have made Job Keeper a breeze and kept our business strong. They respond to emails quickly. They have been terrific value for us as they have brought knowledge and expertise that I don't have even if I had the time to do my accounting. They have taken the time to understand my business and structure our finances accordingly.
Kyle Maloney
Kyle Maloney
06:19 22 May 20
Amazing service from James (& Brianna), going well above his responsibilities to his clients. Cannot recommend James highly enough. HQB a highly professional and responsive accounting firm. Incredibly quick at responding, yes, often after hours, which is more than we would ever expect from any professional. I am continually recommending James to friends and family. Many thanks James. Kind regards, Lyn (& Jeff) Green
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Jeff Green
01:02 17 May 20
James became our Accountant last year and he has handled all our entities swiftly and pro actively. We are incredibly impressed with him and HQB and feel very comfortable in their hands to manage our Business. James is always prompt in replying and sometimes out of hours and his handling of our recent predicament with COVID 19 has helped us manage our Business successfully through this trying time. Thank you James and the team at HQB. We will always recommend you highly,.
Pandora Colledge
Pandora Colledge
01:36 15 May 20

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