Updated: Oct 11, 2021
The 2021 Federal Budget was announced on 6 October 2020 and received Royal Assent on 14 October 2020. The announcement has a heavy emphasis on getting Australia back on track for economic recovery in the wake of the Coronavirus outbreak. You can view the 2021 Federal Budget in detail and the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Bill 2020.
In an attempt to transition unemployed Australians currently receiving JobSeeker payments into gainful employment, the Government has introduced the JobMaker Hiring Credit, designed to support new employment. It offers eligible employers up to $200 per week for each newly eligible employee hired. It is expected that around 450,000 new positions for young Australians will be supported through the JobMaker Hiring Credit.
It’s no surprise that for the majority of Australians interest was piqued with the mention of tax cuts. But what do those tax cuts mean for employees?
For low and middle-income earners it means that in comparison to the 2017-2018 financial year, singles will see tax relief of up to $2,745 and dual-income families of up to $5,490 for the 2020-2021 financial year. This roughly translates to an extra $20 a week in the pocket of those on an annual income of $60,000.
These cuts come in the form of decreased rates, and increased thresholds included within the legislated Tax Tables which have been implemented directly into e-PayDay Version 21.30.
e-PayDay Hosted Version 21.30 has been manually uploaded to all accounts.
Once using Version 21.30, you will notice that the majority of Employee's Net Pay will increase by anywhere from $1 - $30 per week depending on their setup within e-PayDay.
It is important to note that regardless that these changes will apply retrospectively from 1 July 2020, no manual calculations or amendments are required to be processed through e-PayDay as previous periods will be factored in when the ATO process the 2021 Individual Income Tax Returns (IITR).