Category: Tax Rates

ATO Publish New Tax Tables

October 2020 Tax Threshold update 

Changes to personal income tax thresholds announced by the Government during the Federal Budget have been incorporated into the withholding schedules and tax tables and will apply to payments made on and from 13 October 2020. 

As the changes to withholding are made part way through the income year, employers and other payers who are unable to immediately implement these changes into their payroll will have until 16 November 2020 to do so. 

Employees and other payees will receive their entitlement to the reduced tax payable for the entire 2020–21 income year when they lodge their income tax return. 

Read more here https://www.ato.gov.au/Rates/Tax-tables/

30 June Trustee Resolution Minutes!

For those businesses that trade out of a Discretionary (Family) Trust it is an annual mandatory requirement of the ATO that all Discretionary Trusts prepare a Trustee Resolution Minute before 30 June each year. 

The Minute outlines who is going to be allocated the income of the trust. 

Without this Minute, the ATO will allocate all income of the Trust to the Primary Beneficiary as shown in the Trust’s Deed, or if there is no Primary Beneficiary listed on the Trust’s Deed, the Trustee of the Trust will be taxed at the highest marginal tax rate plus Medicare levy. 

As you can see, the tax consequences could be significant, which makes this Trustee Resolution Minute all the more important. 

Ensure your minutes are in order as we count down to 30 June.