Following the recent Budget announcements, personal income tax thresholds have changed. Additionally, steps must be taken to be eligible for JobKeeper 2.0.
Tax Table Update
Employers will need to implement updated Tax Tables by 16 November 2020.
- If you are using online STP compliant software (eg MYOB, Xero) we are advised that the software providers will update the Tax Tables prior to the deadline.
- If you are using any other method to process payroll, you will need to ensure that you are using the correct Tax Tables as set out here.
For more information refer to this link from the ATO with all of the details.
JobKeeper 2.0 extension
Steps to be taken to be eligible for JobKeeper into the coming months:
- You can enrol at any time until the program closes. You only need to enrol once.
- If you have already enrolled for JobKeeper, you do not need to re-enrol for the JobKeeper extension. Employees do not need to complete another nomination notice.
- You will need to check your actual decline in turnover for continuing eligibility from 1 October 2020 and again from 1 January 2021. Once confirmed, you will need to submit this information to the ATO online, advising which of your employees are eligible AND nominating the relevant Tier.
- Within 7 days of notifying the ATO, you must notify your employees and/or Eligible Business Participant advising of the payment rate. To access sample letters for employees and eligible business participants click the link below.
- By the 14th of each month – complete a business monthly declaration to claim JobKeeper payments for the previous month.
- If you are not participating in the JobKeeper extension, there is no further action you need to take after your final declaration to be reimbursed for September payments.
For more information, including worked examples, please refer to our JobKeeper 2.0 guide.
Download our Sample Letters below: