Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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2020-2021 income tax cuts

Community Moderator Community Moderator
‎19 October 2020 11:04 AM

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Recently, the Government handed down the Budget for 2020-2021. The Budget featured several measures to support our economy, including income tax cuts.

These cuts may have an impact on you, so let’s run through what you need to know:

  • You don’t need to do anything to start receiving the tax cuts - your employer will adjust your pay to make sure the correct amount of tax is being withheld
  • It may take a little while for the tax cuts to be reflected in your take-home pay – we’re working with payroll software providers and employers to make sure this happens as quickly as possible.
  • We’ve asked employers to make sure they’re withholding the right amount of tax from their employees for any pay runs processed in their system from no later than 16 November onwards.
  • The tax cuts have been backdated to 1 July –  any amounts withheld prior to your employer updating their payroll software and processes will be applied when you lodge your 2020-21 tax return.

Read more about the Implementation of announced tax cuts and 2020-21 Budget.


Hi There,


While running payrolls for period post 13th Oct,2020 - do I need to manually adjust the PAYG withholding and where do I refer the updated tax tables on ATO website.



Tax Learning


Scale 1 - tax free threshold not claimed has a NEGATIVE amount in column B which our payroll does not accept.


Does this need to be updated by the ATO

ATO Community Support

Hi @TAXLEARNING and SueBuckley


I would like to invite you to talk to your software provider about when they will release updates.


New tax tables reflecting recent updated have been published.


I hope this helps.




it's great to know.