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.
Changes to age limits for genuine redundancy and early retirement
scheme payments
Legislation was passed in October 2019 that extended the concessional tax
treatment of genuine redundancy and early retirement scheme payments.
This was extended to people who had reached the age-based limit of
65 years but not the age-pension age. The changes apply to payments
received by employees who are dismissed or retire on or after 1 July 2019.
This may impact withholding calculations for some employees when
using Schedule 7 – Tax table for unused leave payments on termination of
employment and Schedule 11 – Tax table for employment termination
payments.
Refer to further information before using these schedules: Genuine
redundancy and early retirement scheme payments – alignment with the
Age Pension age.
Tax tables that were updated and apply from 13
October 2020