Employers need to apply recent tax cuts as soon as possible

The ATO has now updated the tax withholding schedules

They reflect the 2020/21 income year personal tax cuts.

Updated schedules are available at ato.gov.au/taxtables.

The ATO has said that employers now need to make adjustments in their payroll processes and systems in order for the tax cuts to be reflected in employees’ take-home pay.

Employers must make sure they are withholding the correct amount from salary or wages paid to employees for any pay runs processed in their system from no later than 16 November onwards.

Employees should be aware that any withholding on the old scales will be taken into account in their tax return.

Employees on JobKeeper can satisfy the ‘work test’

Update from the APRA:  Those on JobKeeper can now be considered as gainfully employed for superannuation purposes.

The Australian Prudential Regulation Authority (‘APRA’) has confirmed that, where an employer is receiving the JobKeeper wage subsidy for an individual, superannuation funds should consider the individual to be ‘gainfully employed’ for the purpose of the ‘work test’ even if that individual has been fully stood down and is not actually performing work.

As such, superannuation funds can assume that all members in receipt of the JobKeeper subsidy satisfy the ‘work test’ when determining whether they can make voluntary superannuation contributions.

Please contact Omnis Group in Perth on 08 9380 3555 if you have any payroll or superannuation queries, whether as an employer or employee.