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Excess tax withheld 2020

Newbie

Views 108

Replies 1

Hi,

 

Last October, the Australian Govt passed laws which made changes to Personal Income Tax Brackets, which subsequently changed the amount of tax that would be withheld from wage payments moving forward.

 

Prior to this change, the tax on my wages were being deducted in accordance to the tax tables before October 2020. As such, a lot more tax was withheld when compared to the tax being withheld for the same wage after October 2020.

 

Is this taken into account in the income tax estimates for 2021 on the website or will ATO make further adjustments on this?

 

 

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Most helpful response

ATO Community Support

Replies 0

Hi @AbhijitTale,

 

Tax rates are set for a financial year, meaning they do not change through a particular financial year. The laws that were passed in October would relate to the 2022 financial year.

 

However, if there was any excess tax that was withheld from your income it will be refunded to you when you lodge your tax return.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @AbhijitTale,

 

Tax rates are set for a financial year, meaning they do not change through a particular financial year. The laws that were passed in October would relate to the 2022 financial year.

 

However, if there was any excess tax that was withheld from your income it will be refunded to you when you lodge your tax return.