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Withholding Tax Instruments as made
This instrument makes publicly available the withholding schedules updated in accordance with the pay as you go (PAYG) system. The schedules provide certainty to payers about withholding correct amounts of tax on behalf of their payees, which then assists payees to meet their annual income tax liability.
Administered by: Treasury
Registered 12 Oct 2020
Tabling HistoryDate
Tabled HR19-Oct-2020

Legislative Instrument

 

Taxation Administration Act
Withholding Schedules No.2 2020

 

I, Louise Clarke, Deputy Commissioner of Taxation, make this determination under section 15‑25 of Schedule 1 to the Taxation Administration Act 1953.

 

 

 

 

Louise Clarke

Deputy Commissioner of Taxation

12 October 2020

 

 

1.            Name of instrument

This determination is the Taxation Administration Act Withholding Schedules No.2 2020.

 

2.            Commencement

This instrument commences on 13 October 2020.

 

3.            Repealing of existing instrument

This instrument repeals legislative instrument Taxation Administration Act Withholding Schedules 2020 – F2020L00768, registered on 22 June 2020.

 

4.            Purpose

(a)          Withholding schedules specify the formulas and procedures to be used for working out the amount to be withheld by an entity from a withholding payment covered by Subdivision 12-B, 12-C or 12-D of Schedule 1 to the Taxation Administration Act 1953.

(b)          The withholding schedules in this instrument are made for the purposes of collecting income tax, Medicare levy and amounts of liabilities to the Commonwealth under the Higher Education Support Act 2003, the Trade Support Loans Act 2014, the Social Security Act 1991 and the Student Assistance Act 1973.

 


 

5.            Withholding schedules

Each of the withholding schedules listed in the following table, has effect from the date of commencement of this instrument:

 

Schedule number

Quick code number

Title

1

63798

Schedule 1 – Statement of formulas for calculating amounts to be withheld

2

63799

Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry

3

63800

Schedule 3 – Tax table for actors, variety artists and other entertainers

4

55461

Schedule 4 – Tax table for return to work payments

5

63801

Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments

6

63802

Schedule 6 – Tax table for annuities

7

63803

Schedule 7 – Tax table for unused leave payments on termination of employment

8

63804

Schedule 8 – Statement of formulas for calculating study and training support loans components

9

63805

Schedule 9 – Tax table for seniors and pensioners

11

63806

Schedule 11 – Tax table for employment termination payments

12

63807

Schedule 12 – Tax table for superannuation lump sums

13

63808

Schedule 13 – Tax table for superannuation income streams

14

44003

Schedule 14 – Tax table for additional amounts to withhold as a result of an agreement to increase withholding

15

63809

Schedule 15 – Tax table for working holiday makers

29

37430

Schedule 29 – Tax table for payments made under voluntary agreements

 

These Schedules are available on the ATO website, ato.gov.au/taxtables

 


 

Schedule 1 – Statement of formulas for calculating amounts to be withheld

For payments made on or after 13 October 2020

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by Subdivisions 12-B (except sections 12-50 and 12-55), and 12-D of Schedule 1 to the TAA.

Using this schedule

If you develop your own payroll software package, this schedule provides the formulas you will need to calculate the amounts to be withheld from payments made on a weekly, fortnightly, monthly or quarterly basis.

To assist employers who don't have a payroll software package, our website provides the following tools which are based on the formulas in this schedule:

       a tax withheld calculator, and

       tax tables

Payments covered include:

       salary, wages, allowances and leave loading paid to employees

       paid parental leave

       directors' fees

       salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)

       payments to labour-hire workers

       payments to religious practitioners

       government pensions

       government education or training payments

       compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).

Do not use this schedule for payments made to individuals employed under a working holiday makers visa. You must use the Tax table for working holiday makers for all payments made to them, including lump sum payments.

See also:

       You can download a printable version of Statement of formulas for calculating amounts to be withheld (PDF, 579KB) (NAT 1004) in Portable Document Format (PDF).

Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments

Where the tax-free threshold is not claimed in Tax file number declaration – Scale 1

Weekly earnings
 (x) less than
 $

a

b

88

0.1900

0.1900

371

0.2348

3.9639

515

0.2190

−1.9003

932

0.3477

64.4297

1,957

0.3450

61.9132

3,111

0.3900

150.0093

3,111 & over

0.4700

398.9324

Where the employee claimed the tax-free threshold in Tax file number declaration – Scale 2

Weekly earnings
 (x) less than
 $

a

b

359

438

0.1900

68.3462

548

0.2900

112.1942

721

0.2100

68.3465

865

0.2190

74.8369

1,282

0.3477

186.2119

2,307

0.3450

182.7504

3,461

0.3900

286.5965

3,461 & over

0.4700

563.5196

Foreign residents –Scale 3

Weekly earnings
 (x) less than
 $

a

b

2,307

0.3250

0.3250

3,461

0.3700

103.8462

3,461 & over

0.4500

380.7692

Where a tax file number (TFN) was not provided by employee –Scale 4

Earnings

Tax rate

Resident
 $1 & over

0.4700

Foreign resident
 $1 & over

0.4500

Where the employee claimed the FULL exemption from Medicare levy in Medicare levy variation declaration –Scale 5

Weekly earnings
 (x) less than
 $

a

b

359

721

0.1900

68.3462

865

0.1990

74.8365

1,282

0.3277

186.2115

2,307

0.3250

182.7500

3,461

0.3700

286.5962

3,461 & over

0.4500

563.5192

Where the employee claimed the HALF exemption from Medicare levy in Medicare levy variation declaration –Scale 6

Weekly earnings
 (x) less than
 $

a

b

359

721

0.1900

68.3462

739

0.1990

74.8365

865

0.2490

111.8308

924

0.3777

223.2058

1,282

0.3377

186.2119

2,307

0.3350

182.7504

3,461

0.3800

286.5965

3,461 & over

0.4600

563.5196

Notes

 

1.    Scale 1 contains a negative value for one of the b coefficients. This is intentional.

2.    If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings.

3.    Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.

4.    For scale 4 no coefficients are necessary. To calculate withholding, apply the tax rate to earnings, ignoring any cents in earnings and in the withholding result.

5.    Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.

6.    Tax offsets may be allowed only where scales 2, 5 or 6 are applied.

7.    Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only.

8.    For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $22,801 ($438 per week) or less. Where the taxable income exceeds $22,801 but is less than $28,501 ($548 per week), the levy is shaded in at the rate of 10% of the excess over $22,801. Where a person’s taxable income is $28,501 ($548 per week) or more, Medicare is levied at the rate of 2% of total taxable income.

9.    The Medicare levy is also shaded in for scale 6. The Medicare levy parameters for scales 2 and 6 are as follows:

Medicare levy parameters

Parameter

Scale 2

Scale 6

Weekly earnings threshold

438

739

Weekly earnings shade-in threshold

548

924

Medicare levy family threshold

38,474

38,474

Weekly family threshold divisor

52

52

Additional child

3,533

3,533

Shading out point multiplier

0.1000

0.0500

Shading out point divisor

0.0800

0.0400

Weekly levy adjustment factor

438.4800

739.8800

Medicare levy

0.0200

0.0100

About this schedule

Amounts to be withheld from payments made weekly, fortnightly, monthly and quarterly, as set out in the relevant PAYG withholding tax table, can be calculated using the formulas and coefficients contained in this schedule.

Separate formulas apply to:

       employees who have not claimed the tax-free threshold

       foreign residents

       employees claiming a full exemption from Medicare levy

       employees claiming a half exemption from Medicare levy

       employees who have claimed the tax-free threshold.

Find out about:

       Tax file number (TFN) declarations

       Withholding declarations

       Allowances

       Holiday pay, long service leave and employment termination payments

       Claiming tax offsets

       Medicare levy adjustment

Using a formula

The formulas comprise linear equations of the form y = ax − b, where:

       y is the weekly withholding amount expressed in dollars

       x is the number of whole dollars in the weekly earnings plus 99 cents

       a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).

The formulas relate only to the calculation of withholding amounts before any tax offsets and Medicare levy adjustments are allowed. For instructions on the treatment of tax offsets and Medicare levy adjustments, refer to Tax offsets and Medicare levy adjustment.

For sample data to verify that the software program is calculating the correct withholding amounts and Medicare levy adjustments, see Withholding amounts and Medicare levy adjustments.

Withholding amounts calculated using these formulas may vary slightly to those calculated using the method set out in the footnote to the appropriate PAYG withholding tax table. This applies if earnings exceed $3,275 weekly or $6,550 fortnightly.

Rounding of withholding amounts

Withholding amounts calculated as a result of applying the above formulas are rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

Use these rounding rules across all scales except scale 4 (where employee does not provide a TFN). For scale 4, cents are ignored when applying the tax rate to earnings and when withholding amounts are calculated.

When there are 53 pays in a financial year

In some years, you may have 53 pays instead of the usual 52. As this schedule is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amount in the table below.

Extra withholding amount, 53 pays

Weekly earnings
 $

Additional withholding
 $

875 to 2,299

3

2,300 to 3,449

5

3,450 and over

10

When there are 27 pays in a financial year

In some years, you may have 27 pays instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amounts in the table below.

Extra withholding amount, 27 pays

Fortnightly earnings
 $

Additional withholding
 $

1,750 to 4,549

13

4,550 to 6,749

21

6,750 and over

40

Working out the weekly earnings

The method of working out the weekly earnings (x) for the purpose of applying the formulas is as follows:

Example

Weekly income

$467.59

Add allowance subject to withholding

$ 9.50

Total earnings (ignore cents)

$477.00

Add 99 cents

$0.99

Weekly earnings

$477.99

 

Calculating withholding fortnightly, monthly or quarterly amounts

First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings. If you pay:

       fortnightly – divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by two. Ignore any cents in the result and then add 99 cents.

       monthly – obtain the sum of the monthly earnings and the amount of any allowances subject to withholding (if the result is an amount ending in 33 cents, add one cent), multiply this amount by three and then divide by 13. Ignore any cents in the result and then add 99 cents.

       quarterly – divide the sum of the quarterly earnings and the amount of any allowances subject to withholding by 13. Ignore any cents in the result and then add 99 cents.

Then calculate fortnightly, monthly or quarterly withholding amounts as follows:

       fortnightly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by two.

       monthly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13, divide the product by three and round the result to the nearest dollar.

       quarterly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13.

Tax offsets

The withholding amount calculated using scales 2, 5 or 6 of the formulas is reduced as follows:

       weekly – 1.9% of the total amount claimed at the tax offsets questions on the Withholding declaration (NAT 3093), rounded to the nearest dollar

       fortnightly – 3.8% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar

       monthly – 8.3% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar

       quarterly – 25% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar.

Medicare levy adjustment

A Medicare levy adjustment is not allowed where withholding amounts have been calculated using scales 1, 3, 4 or 5. The amount obtained using scales 2 or 6 (after allowing for any tax offsets) is reduced by any amount of Medicare levy adjustment applicable.

When an employee is entitled to an adjustment

An employee who has lodged both a completed Withholding declaration and a Medicare levy variation declaration, may be entitled to a Medicare levy adjustment if they have weekly earnings of one of the following:

       $438 or more where scale 2 is applied

       $739 or more where scale 6 is applied.

 

To claim the adjustment, the employee must answer yes to question 10 and yes to question 9, and/or question 12 on the Medicare levy variation declaration.

Calculating the Medicare levy adjustment

To calculate the Medicare levy adjustment, your software package will need to be able to distinguish those employees who have answered yes to question 9 and no to question 12 on the Medicare levy variation declaration.

Where employees have answered yes to question 12, the software must be able to store the number of dependants shown at this question on the declaration.

You will need to calculate the weekly family threshold and shading out point (SOP) before calculating the weekly levy adjustment for employees with weekly earnings of one of the following:

       $548 or more where scale 2 is applied

       $924 or more where scale 6 is applied.

Values used in the calculations may be regarded as variables.

Weekly family threshold (WFT)

Where scale 2 or scale 6 is applied

       Where an employee has answered yes to question 9 and no to question 12 on the Medicare levy variation declaration:

           WFT = $739.88 (38,414 ÷ 52) (rounded to the nearest cent).

       Where an employee has answered yes to question 12 on the Medicare levy variation declaration, you need to:

a.    multiply the number of children shown at question 12 by 3,533 and add the result to 38,474

b.    divide the result of (a) by 52

c.    round the result of (b) to the nearest cent.

 

Example

If the employee has shown two dependent children at question 12:

WFT = ([3,533 × 2] + 38,474) ÷ 52

WFT = 875.7692 or $875.77 (rounded to the nearest cent)

Shading out point (SOP)

The SOP relative to an employee’s WFT is calculated as follows:

Multiply WFT by 0.1 and divide the result by 0.0800. Ignore any cents in the result.

 

Example

Employee has shown six dependent children at question 12 and scale 2 is applied:

WFT = ([3,533 × 6] + 38,474) ÷ 52

WFT = 1,147.5385 or $1,147.54 (rounded to the nearest cent)

SOP = (WFT × 0.1) ÷ 0.0800

SOP = ($1,147.54 × 0.1) ÷ 0.0800

SOP = 1,434.4250 or $1,434 (ignoring cents)

Weekly levy adjustment (WLA)

Where scale 2 is applied

Where weekly earnings are $422 or more but less than the SOP, the WLA is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (refer to Working out the weekly earnings), in the following formulas:

1.      If x is less than $548, WLA = (x – 4238.48) × 0.1

2.      If x is $58 or more but less than WFT, WLA = x × 0.0200

3.      If x is equal to or greater than WFT and less than the SOP, WLA =
 (WFT × 0.0200) − ([x − WFT] × 0.0800)

Where scale 6 is applied

Where weekly earnings are $739 or more but less than the SOP, the WLA is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (refer to Working out the weekly earnings), in the following formulas:

 

1.      If x is less than $924, WLA = (x − 739.88) × 0.05

2.      If x is $924 or more but less than WFT, WLA = x × 0.0100

3.      If x is equal to or greater than WFT and less than the SOP, WLA =
 (WFT × 0.0100) − ([x − WFT] × 0.0400)

In each case WLA should be rounded to the nearest dollar.

Values ending in 50 cents should be rounded to the next higher dollar.

Examples

 

Example 1

Employee’s weekly earnings are $465.33 and scale 2 is applied.

x = 465.99

As x is less than $548, WLA is calculated using formula (1):

WLA = (465.99 − 438.48) × 0.1
 = 2.7510 or $3.00 (rounded to the nearest dollar).

 

Example 2

Employee's weekly earnings are $925.25 and the number of children claimed at question 12 is three. Scale 6 is applied.

x = 925.99
 WFT = ([3,533 × 3] + 38,474) ÷ 52
 = 943.7115 or $943.71 (rounded to the nearest cent)

As x is greater than $924 and less than WFT, WLA is calculated using formula (2):

WLA = 925.99 × 0.01
 = 9.2599 or $9.00 (rounded to the nearest dollar).

 

Example 3

Employee’s weekly earnings are $1,200.47 and the number of children claimed at question 12 is four. Scale 2 is applied.

x = 1,200.99
 WFT = ([3,533 × 4] + 38,474) ÷ 52
 = 1,011.6538 or $1,011.65 (rounded to the nearest cent).

SOP = (1,011.65 × 0.1) ÷ 0.08
 = 1,264.5625 or $1,264 (ignoring cents).

As x is greater than WFT and less than SOP, WLA is calculated using formula (3):

WLA = (1,011.65 × 0.020) − ([1,200.99 − 1,011.65] × 0.0800)
 = 5.0858 or $5.00 (rounded to the nearest dollar)

Fortnightly levy adjustment

Multiply rounded weekly levy adjustment by two.

Example

Employee’s fortnightly earnings are $1,650.52 and the number of children claimed at question 12 is one. Scale 2 is applied.

Equivalent weekly earnings = $1,650.52 ÷ 2

= $825.26

x = 825.99

WFT = ([3,533 × 1] + 38,474) ÷ 52

= 807.8269 or $807.83 (rounded to the nearest cent).

SOP = (807.83 × 0.1) ÷ 0.08

= 1,009.7875 or $1,009 (ignoring cents).

As x is greater than WFT and less than SOP, formula (3) is used:

WLA = (807.83 × 0.020) − ([825.99 − 807.83] × 0.0800)

= 14.7038 or $15.00 (rounded to the nearest dollar).

The fortnightly levy adjustment is therefore $30.00 ($15.00 × 2)

Monthly levy adjustment

Multiply rounded weekly levy adjustment by 13 and divide the result by three. The result should be rounded to the nearest dollar.

Example

Employee’s monthly earnings are $2,800.33 and has a spouse but no children. Scale 2 is applied.

Equivalent weekly earnings = ($2,800.33 + 0.01) × 3 ÷ 13

= $646.23

x = 646.99

WFT = $739.88

As x is greater than $548 and less than WFT, formula (2) applies:

WLA = 646.99 × 0.0200 = 12.9398 or $13.00 (rounded to the nearest dollar).

The monthly adjustment is therefore $56.00 ($13.00 × 13 ÷ 3, rounded to the nearest dollar).

Quarterly levy adjustment

Multiply rounded weekly levy adjustment by 13

General examples

Example 1

Employee's weekly earnings are $1,103.45. Employee has completed a Tax file number declaration claiming the tax-free threshold. The employee has also provided a Medicare levy variation declaration with five children shown at question 12.

Therefore, scale 2 is applied.

x = 1,103.99

Weekly withholding amount (y)

= (a × x) − b

= (0.3477 × 1,103.99) − 186.2119

= 197.6454 or $198.00 (rounded to nearest dollar)

Levy adjustment: weekly earnings are greater than WFT ($1,079.60) and less than the SOP ($1,349) appropriate to an employee with five children. Formula (3) applies.

= (1,079.60 × 0.0200) – ([1,103.99 − 1,079.60] × 0.0800)

= 21.5920 − 1.9512

= 19.6408 or $20.00 (rounded to nearest dollar)

Net weekly withholding amount

$198.00 − $20.00 = $178.00

 

Example 2

Employee's fortnightly earnings are $1,110.30. Employee resides in zone B, has provided a Tax file number declaration that claims the tax-free threshold and a Withholding declaration that claims zone and tax offsets at the tax offsets questions that totals $1,645. The employee has also lodged a Medicare levy variation declaration claiming a full exemption from the Medicare levy.

Therefore, scale 5 is applied.

Convert to weekly equivalent

= (1,110.30 ÷ 2)

= 555.15 or $555 (ignore cents)

x = 555.99

Weekly withholding amount (y)

= (a × x) − b

= (0.1900 × 555.99) − 68.3462

= 37.2919 or $37.00 (rounded to nearest dollar)

Fortnightly withholding amount

$37.00 × 2 = $74.00

Tax offsets claimed at the tax offsets questions on the Withholding declaration

= 3.8% of $1,645

= 62.5100 or $63.00 (rounded to nearest dollar)

Net fortnightly withholding amount

$74.00 − $63.00 = $11.00.

 

Example 3

Employee's monthly earnings are $4,500.33. Employee has provided a Tax file number declaration claiming the tax-free threshold and claimed a total tax offset of $1,365 at the tax offsets question on the Withholding declaration. The employee has one child but is not eligible for a Medicare levy adjustment. The weekly equivalent of the employee’s earnings exceeds the Medicare levy SOP of $1,009 appropriate to an employee with one child.

Therefore, scale 2 is applied.

Convert to weekly equivalent

= ($4,500.33 + 0.01) × 3 ÷ 13

= 1,038.5400 or $1,038 (ignore cents)

x = 1,038.99

Weekly withholding amount (y)

= (a × x) − b

= (0.3477 × 1,038.99) − 186.2119

= 175.0449 or $175.00 (rounded to nearest dollar)

Monthly withholding amount

$175.00 × 13 ÷ 3 = $758.33 or $758.00 (rounded to nearest dollar)

Tax offset claimed

= 8.3% of $1,365

= 113.2950 or $113.00 (rounded to nearest dollar)

Net monthly withholding amount

$758.00 − $113.00 = $645.00

 

Calculating withholding amounts for payments made on a daily or casual basis

The withholding amounts shown in the Tax table for daily and casual workers can be expressed in a mathematical form, using the formulas and coefficients provided.

To work out withholding amounts using the formulas:

 

1.      Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result.

2.      Calculate the weekly amount by applying the coefficients at:

           Scale 2 where an employee is claiming the tax-free threshold. (The employee must have claimed the tax-free threshold to use the Tax table for daily and casual workers.)

3.      Round the result to the nearest dollar.

4.      Divide this amount by five to convert it to the daily equivalent.

5.      Round the daily withholding amount to the nearest dollar.

Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners.

Accounting software

Software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data provided. The results obtained when using the coefficients in this schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.

Sample data

Weekly withholding amounts

Amounts to be withheld

Weekly earnings
 $

Scale 1
 No tax-free threshold
 $

Scale 2
 With tax-free threshold
 $

Scale 3
 Foreign resident
 $

Scale 5
 Full Medicare exemption
 $

Scale 6
 Half Medicare exemption
 $

87

17.00

0.00

28.00

0.00

0.00

88

17.00

0.00

29.00

0.00

0.00

116

24.00

0.00

38.00

0.00

0.00

117

24.00

0.00

38.00

0.00

0.00

249

55.00

0.00

81.00

0.00

0.00

250

55.00

0.00

81.00

0.00

0.00

358

80.00

0.00

116.00

0.00

0.00

359

81.00

0.00

117.00

0.00

0.00

370

83.00

2.00

120.00

2.00

2.00

371

83.00

2.00

121.00

2.00

2.00

437

98.00

15.00

142.00

15.00

15.00

438

98.00

15.00

142.00

15.00

15.00

514

115.00

37.00

167.00

30.00

30.00

515

115.00

37.00

167.00

30.00

30.00

547

126.00

47.00

178.00

36.00

36.00

548

126.00

47.00

178.00

36.00

36.00

720

186.00

83.00

234.00

69.00

69.00

721

187.00

83.00

234.00

69.00

69.00

738

193.00

87.00

240.00

72.00

72.00

739

193.00

87.00

240.00

72.00

72.00

864

236.00

115.00

281.00

97.00

104.00

865

237.00

115.00

281.00

98.00

104.00

923

257.00

135.00

300.00

117.00

126.00

924

257.00

135.00

300.00

117.00

126.00

931

260.00

138.00

303.00

119.00

129.00

932

260.00

138.00

303.00

120.00

129.00

1,281

380.00

260.00

416.00

234.00

247.00

1,282

381.00

260.00

417.00

234.00

247.00

1,844

575.00

454.00

599.00

417.00

435.00

1,845

575.00

454.00

600.00

417.00

436.00

1,956

613.00

492.00

636.00

453.00

473.00

1,957

614.00

493.00

636.00

454.00

473.00

2,119

677.00

549.00

689.00

506.00

527.00

2,120

677.00

549.00

689.00

507.00

528.00

2,306

750.00

613.00

749.00

567.00

590.00

2,307

750.00

614.00

750.00

567.00

590.00

2,490

821.00

685.00

818.00

635.00

660.00

2,491

822.00

685.00

818.00

635.00

660.00

2,652

885.00

748.00

878.00

695.00

722.00

2,653

885.00

748.00

878.00

695.00

722.00

2,736

917.00

781.00

909.00

726.00

753.00

2,737

918.00

781.00

909.00

726.00

754.00

2,898

981.00

844.00

969.00

786.00

815.00

2,899

981.00

844.00

969.00

786.00

815.00

2,913

986.00

850.00

974.00

792.00

821.00

2,914

987.00

850.00

975.00

792.00

821.00

3,111

1,064.00

927.00

1,048.00

865.00

896.00

3,461

1,228.00

1,064.00

1,177.00

994.00

1,029.00

Fortnightly withholding amounts

Amounts to be withheld

Fortnightly earnings
 $

Scale 1
 No tax-free threshold
 $

Scale 2
 With tax-free threshold
 $

Scale 3
 Foreign resident
 $

Scale 5
 Full Medicare exemption
 $

Scale 6
 Half Medicare exemption
 $

174

34.00

0.00

56.00

0.00

0.00

176

34.00

0.00

58.00

0.00

0.00

232

48.00

0.00

76.00

0.00

0.00

234

48.00

0.00

76.00

0.00

0.00

498

110.00

0.00

162.00

0.00

0.00

500

110.00

0.00

162.00

0.00

0.00

716

160.00

0.00

232.00

0.00

0.00

718

162.00

0.00

234.00

0.00

0.00

740

166.00

4.00

240.00

4.00

4.00

742

166.00

4.00

242.00

4.00

4.00

874

196.00

30.00

284.00

30.00

30.00

876

196.00

30.00

284.00

30.00

30.00

1,028

230.00

74.00

334.00

60.00

60.00

1,030

230.00

74.00

334.00

60.00

60.00

1,094

252.00

94.00

356.00

72.00

72.00

1,096

252.00

94.00

356.00

72.00

72.00

1,440

372.00

166.00

468.00

138.00

138.00

1,442

374.00

166.00

468.00

138.00

138.00

1,476

386.00

174.00

480.00

144.00

144.00

1,478

386.00

174.00

480.00

144.00

144.00

1,728

472.00

230.00

562.00

194.00

208.00

1,730

474.00

230.00

562.00

196.00

208.00

1,846

514.00

270.00

600.00

234.00

252.00

1,848

514.00

270.00

600.00

234.00

252.00

1,862

520.00

276.00

606.00

238.00

258.00

1,864

520.00

276.00

606.00

240.00

258.00

2,562

760.00

520.00

832.00

468.00

494.00

2,564

762.00

520.00

834.00

468.00

494.00

3,688

1,150.00

908.00

1,198.00

834.00

870.00

3,690

1,150.00

908.00

1,200.00

834.00

872.00

3,912

1,226.00

984.00

1,272.00

906.00

946.00

3,914

1,228.00

986.00

1,272.00

908.00

946.00

4,238

1,354.00

1,098.00

1,378.00

1,012.00

1,054.00

4,240

1,354.00

1,098.00

1,378.00

1,014.00

1,056.00

4,612

1,500.00

1,226.00

1,498.00

1,134.00

1,180.00

4,614

1,500.00

1,228.00

1,500.00

1,134.00

1,180.00

4,980

1,642.00

1,370.00

1,636.00

1,270.00

1,320.00

4,982

1,644.00

1,370.00

1,636.00

1,270.00

1,320.00

5,304

1,770.00

1,496.00

1,756.00

1,390.00

1,444.00

5,306

1,770.00

1,496.00

1,756.00

1,390.00

1,444.00

5,472

1,834.00

1,562.00

1,818.00

1,452.00

1,506.00

5,474

1,836.00

1,562.00

1,818.00

1,452.00

1,508.00

5,796

1,962.00

1,688.00

1,938.00

1,572.00

1,630.00

5,798

1,962.00

1,688.00

1,938.00

1,572.00

1,630.00

5,826

1,972.00

1,700.00

1,948.00

1,584.00

1,642.00

5,828

1,974.00

1,700.00

1,950.00

1,584.00

1,642.00

6,222

2,128.00

1,854.00

2,096.00

1,730.00

1,792.00

6,922

2,456.00

2,128.00

2,354.00

1,988.00

2,058.00

Monthly withholding amounts

Amounts to be withheld

Monthly earnings
 $

Scale 1
 No tax-free threshold
 $

Scale 2
 With tax-free threshold
 $

Scale 3
 Foreign resident
 $

Scale 5
 Full Medicare exemption
 $

Scale 6
 Half Medicare exemption
 $

377.00

74.00

0.00

121.00

0.00

0.00

381.33

74.00

0.00

126.00

0.00

0.00

502.67

104.00

0.00

165.00

0.00

0.00

507.00

104.00

0.00

165.00

0.00

0.00

1,079.00

238.00

0.00

351.00

0.00

0.00

1,083.33

238.00

0.00

351.00

0.00

0.00

1,551.33

347.00

0.00

503.00

0.00

0.00

1,555.67

351.00

0.00

507.00

0.00

0.00

1,603.33

360.00

9.00

520.00

9.00

9.00

1,607.67

360.00

9.00

524.00

9.00

9.00

1,893.67

425.00

65.00

615.00

65.00

65.00

1,898.00

425.00

65.00

615.00

65.00

65.00

2,227.33

498.00

160.00

724.00

130.00

130.00

2,231.67

498.00

160.00

724.00

130.00

130.00

2,370.33

546.00

204.00

771.00

156.00

156.00

2,374.67

546.00

204.00

771.00

156.00

156.00

3,120.00

806.00

360.00

1,014.00

299.00

299.00

3,124.33

810.00

360.00

1,014.00

299.00

299.00

3,198.00

836.00

377.00

1,040.00

312.00

312.00

3,202.33

836.00

377.00

1,040.00

312.00

312.00

3,744.00

1,023.00

498.00

1,218.00

420.00

451.00

3,748.33

1,027.00

498.00

1,218.00

425.00

451.00

3,999.67

1,114.00

585.00

1,300.00

507.00

546.00

4,004.00

1,114.00

585.00

1,300.00

507.00

546.00

4,034.33

1,127.00

598.00

1,313.00

516.00

559.00

4,038.67

1,127.00

598.00

1,313.00

520.00

559.00

5,551.00

1,647.00

1,127.00

1,803.00

1,014.00

1,070.00

5,555.33

1,651.00

1,127.00

1,807.00

1,014.00

1,070.00

7,990.67

2,492.00

1,967.00

2,596.00

1,807.00

1,885.00

7,995.00

2,492.00

1,967.00

2,600.00

1,807.00

1,889.00

8,476.00

2,656.00

2,132.00

2,756.00

1,963.00

2,050.00

8,480.33

2,661.00

2,136.00

2,756.00

1,967.00

2,050.00

9,182.33

2,934.00

2,379.00

2,986.00

2,193.00

2,284.00

9,186.67

2,934.00

2,379.00

2,986.00

2,197.00

2,288.00

9,992.67

3,250.00

2,656.00

3,246.00

2,457.00

2,557.00

9,997.00

3,250.00

2,661.00

3,250.00

2,457.00

2,557.00

10,790.00

3,558.00

2,968.00

3,545.00

2,752.00

2,860.00

10,794.33

3,562.00

2,968.00

3,545.00

2,752.00

2,860.00

11,492.00

3,835.00

3,241.00

3,805.00

3,012.00

3,129.00

11,496.33

3,835.00

3,241.00

3,805.00

3,012.00

3,129.00

11,856.00

3,974.00

3,384.00

3,939.00

3,146.00

3,263.00

11,860.33

3,978.00

3,384.00

3,939.00

3,146.00

3,267.00

12,558.00

4,251.00

3,657.00

4,199.00

3,406.00

3,532.00

12,562.33

4,251.00

3,657.00

4,199.00

3,406.00

3,532.00

12,623.00

4,273.00

3,683.00

4,221.00

3,432.00

3,558.00

12,627.33

4,277.00

3,683.00

4,225.00

3,432.00

3,558.00

13,481.00

4,611.00

4,017.00

4,541.00

3,748.00

3,883.00

14,997.67

5,321.00

4,611.00

5,100.00

4,307.00

4,459.00

Sample data – Scale 2

Weekly Medicare levy adjustment

Adjustment amount, weekly

Weekly earnings
 $

Spouse only
 $

1
 child
 $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

437

0.00

0.00

0.00

0.00

0.00

0.00

438

0.00

0.00

0.00

0.00

0.00

0.00

492

5.00

5.00

5.00

5.00

5.00

5.00

493

6.00

6.00

6.00

6.00

6.00

6.00

547

11.00

11.00

11.00

11.00

11.00

11.00

548

11.00

11.00

11.00

11.00

11.00

11.00

575

12.00

12.00

12.00

12.00

12.00

12.00

576

12.00

12.00

12.00

12.00

12.00

12.00

603

12.00

12.00

12.00

12.00

12.00

12.00

604

12.00

12.00

12.00

12.00

12.00

12.00

631

13.00

13.00

13.00

13.00

13.00

13.00

632

13.00

13.00

13.00

13.00

13.00

13.00

659

13.00

13.00

13.00

13.00

13.00

13.00

660

13.00

13.00

13.00

13.00

13.00

13.00

687

14.00

14.00

14.00

14.00

14.00

14.00

688

14.00

14.00

14.00

14.00

14.00

14.00

715

14.00

14.00

14.00

14.00

14.00

14.00

716

14.00

14.00

14.00

14.00

14.00

14.00

743

14.00

15.00

15.00

15.00

15.00

15.00

744

14.00

15.00

15.00

15.00

15.00

15.00

771

12.00

15.00

15.00

15.00

15.00

15.00

772

12.00

15.00

15.00

15.00

15.00

15.00

799

10.00

16.00

16.00

16.00

16.00

16.00

800

10.00

16.00

16.00

16.00

16.00

16.00

827

8.00

15.00

17.00

17.00

17.00

17.00

828

8.00

14.00

17.00

17.00

17.00

17.00

855

6.00

12.00

17.00

17.00

17.00

17.00

856

5.00

12.00

17.00

17.00

17.00

17.00

883

3.00

10.00

17.00

18.00

18.00

18.00

884

3.00

10.00

17.00

18.00

18.00

18.00

911

1.00

8.00

15.00

18.00

18.00

18.00

912

1.00

8.00

15.00

18.00

18.00

18.00

939

0.00

6.00

12.00

19.00

19.00

19.00

940

0.00

6.00

12.00

19.00

19.00

19.00

967

0.00

3.00

10.00

17.00

19.00

19.00

968

0.00

3.00

10.00

17.00

19.00

19.00

995

0.00

1.00

8.00

15.00

20.00

20.00

996

0.00

1.00

8.00

15.00

20.00

20.00

1,023

0.00

0.00

6.00

12.00

19.00

20.00

1,024

0.00

0.00

6.00

12.00

19.00

20.00

1,051

0.00

0.00

3.00

10.00

17.00

21.00

1,052

0.00

0.00

3.00

10.00

17.00

21.00

1,079

0.00

0.00

1.00

8.00

15.00

22.00

1,080

0.00

0.00

1.00

8.00

15.00

21.00

1,263

0.00

0.00

0.00

0.00

0.00

7.00

1,264

0.00

0.00

0.00

0.00

0.00

7.00

1,348

0.00

0.00

0.00

0.00

0.00

0.00

1,349

0.00

0.00

0.00

0.00

0.00

0.00

Fortnightly Medicare levy adjustment

Adjustment amount, fortnightly

Fortnightly earnings
 $

Spouse only
 $

1
 child
 $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

874

0.00

0.00

0.00

0.00

0.00

0.00

876

0.00

0.00

0.00

0.00

0.00

0.00

984

10.00

10.00

10.00

10.00

10.00

10.00

986

12.00

12.00

12.00

12.00

12.00

12.00

1,094

22.00

22.00

22.00

22.00

22.00

22.00

1,096

22.00

22.00

22.00

22.00

22.00

22.00

1,150

24.00

24.00

24.00

24.00

24.00

24.00

1,152

24.00

24.00

24.00

24.00

24.00

24.00

1,206

24.00

24.00

24.00

24.00

24.00

24.00

1,208

24.00

24.00

24.00

24.00

24.00

24.00

1,262

26.00

26.00

26.00

26.00

26.00

26.00

1,264

26.00

26.00

26.00

26.00

26.00

26.00

1,318

26.00

26.00

26.00

26.00

26.00

26.00

1,320

26.00

26.00

26.00

26.00

26.00

26.00

1,374

28.00

28.00

28.00

28.00

28.00

28.00

1,376

28.00

28.00

28.00

28.00

28.00

28.00

1,430

28.00

28.00

28.00

28.00

28.00

28.00

1,432

28.00

28.00

28.00

28.00

28.00

28.00

1,486

28.00

30.00

30.00

30.00

30.00

30.00

1,488

28.00

30.00

30.00

30.00

30.00

30.00

1,542

24.00

30.00

30.00

30.00

30.00

30.00

1,544

24.00

30.00

30.00

30.00

30.00

30.00

1,598

20.00

32.00

32.00

32.00

32.00

32.00

1,600

20.00

32.00

32.00

32.00

32.00

32.00

1,654

16.00

30.00

34.00

34.00

34.00

34.00

1,656

16.00

28.00

34.00

34.00

34.00

34.00

1,710

12.00

24.00

34.00

34.00

34.00

34.00

1,712

10.00

24.00

34.00

34.00

34.00

34.00

1,766

6.00

20.00

34.00

36.00

36.00

36.00

1,768

6.00

20.00

34.00

36.00

36.00

36.00

1,822

2.00

16.00

30.00

36.00

36.00

36.00

1,824

2.00

16.00

30.00

36.00

36.00

36.00

1,878

0.00

12.00

24.00

38.00

38.00

38.00

1,880

0.00

12.00

24.00

38.00

38.00

38.00

1,934

0.00

6.00

20.00

34.00

38.00

38.00

1,936

0.00

6.00

20.00

34.00

38.00

38.00

1,990

0.00

2.00

16.00

30.00

40.00

40.00

1,992

0.00

2.00

16.00

30.00

40.00

40.00

2,046

0.00

0.00

12.00

24.00

38.00

40.00

2,048

0.00

0.00

12.00

24.00

38.00

40.00

2,102

0.00

0.00

6.00

20.00

34.00

42.00

2,104

0.00

0.00

6.00

20.00

34.00

42.00

2,158

0.00

0.00

2.00

16.00

30.00

44.00

2,160

0.00

0.00

2.00

16.00

30.00

42.00

2,526

0.00

0.00

0.00

0.00

0.00

14.00

2,528

0.00

0.00

0.00

0.00

0.00

14.00

2,696

0.00

0.00

0.00

0.00

0.00

0.00

2,698

0.00

0.00

0.00

0.00

0.00

0.00

Monthly Medicare levy adjustment

Adjustment amount, monthly

Monthly earnings
 $

Spouse only
 $

1
 child $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

1,893.67

0.00

0.00

0.00

0.00

0.00

0.00

1,898.00

0.00

0.00

0.00

0.00

0.00

0.00

2,132.00

22.00

22.00

22.00

22.00

22.00

22.00

2,136.33

26.00

26.00

26.00

26.00

26.00

26.00

2,370.33

48.00

48.00

48.00

48.00

48.00

48.00

2,374.67

48.00

48.00

48.00

48.00

48.00

48.00

2,491.67

52.00

52.00

52.00

52.00

52.00

52.00

2,496.00

52.00

52.00

52.00

52.00

52.00

52.00

2,613.00

52.00

52.00

52.00

52.00

52.00

52.00

2,617.33

52.00

52.00

52.00

52.00

52.00

52.00

2,734.33

56.00

56.00

56.00

56.00

56.00

56.00

2,738.67

56.00

56.00

56.00

56.00

56.00

56.00

2,855.67

56.00

56.00

56.00

56.00

56.00

56.00

2,860.00

56.00

56.00

56.00

56.00

56.00

56.00

2,977.00

61.00

61.00

61.00

61.00

61.00

61.00

2,981.33

61.00

61.00

61.00

61.00

61.00

61.00

3,098.33

61.00

61.00

61.00

61.00

61.00

61.00

3,102.67

61.00

61.00

61.00

61.00

61.00

61.00

3,219.67

61.00

65.00

65.00

65.00

65.00

65.00

3,224.00

61.00

65.00

65.00

65.00

65.00

65.00

3,341.00

52.00

65.00

65.00

65.00

65.00

65.00

3,345.33

52.00

65.00

65.00

65.00

65.00

65.00

3,462.33

43.00

69.00

69.00

69.00

69.00

69.00

3,466.67

43.00

69.00

69.00

69.00

69.00

69.00

3,583.67

35.00

65.00

74.00

74.00

74.00

74.00

3,588.00

35.00

61.00

74.00

74.00

74.00

74.00

3,705.00

26.00

52.00

74.00

74.00

74.00

74.00

3,709.33

22.00

52.00

74.00

74.00

74.00

74.00

3,826.33

13.00

43.00

74.00

78.00

78.00

78.00

3,830.67

13.00

43.00

74.00

78.00

78.00

78.00

3,947.67

4.00

35.00

65.00

78.00

78.00

78.00

3,952.00

4.00

35.00

65.00

78.00

78.00

78.00

4,069.00

0.00

26.00

52.00

82.00

82.00

82.00

4,073.33

0.00

26.00

52.00

82.00

82.00

82.00

4,190.33

0.00

13.00

43.00

74.00

82.00

82.00

4,194.67

0.00

13.00

43.00

74.00

82.00

82.00

4,311.67

0.00

4.00

35.00

65.00

87.00

87.00

4,316.00

0.00

4.00

35.00

65.00

87.00

87.00

4,433.00

0.00

0.00

26.00

52.00

82.00

87.00

4,437.33

0.00

0.00

26.00

52.00

82.00

87.00

4,554.33

0.00

0.00

13.00

43.00

74.00

91.00

4,558.67

0.00

0.00

13.00

43.00

74.00

91.00

4,675.67

0.00

0.00

4.00

35.00

65.00

95.00

4,680.00

0.00

0.00

4.00

35.00

65.00

91.00

5,473.00

0.00

0.00

0.00

0.00

0.00

30.00

5,477.33

0.00

0.00

0.00

0.00

0.00

30.00

5,841.33

0.00

0.00

0.00

0.00

0.00

0.00

5,845.67

0.00

0.00

0.00

0.00

0.00

0.00

Sample data – scale 6

Weekly Medicare half-levy adjustment

Adjustment amount, weekly half-levy

Weekly
 earnings
 $

1
 child
 $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

738

0.00

0.00

0.00

0.00

0.00

739

0.00

0.00

0.00

0.00

0.00

830

5.00

5.00

5.00

5.00

5.00

831

5.00

5.00

5.00

5.00

5.00

923

9.00

9.00

9.00

9.00

9.00

924

3.00

7.00

9.00

9.00

9.00

940

3.00

6.00

9.00

9.00

9.00

941

3.00

6.00

9.00

9.00

9.00

957

2.00

5.00

9.00

10.00

10.00

958

2.00

5.00

9.00

10.00

10.00

974

1.00

5.00

8.00

10.00

10.00

975

1.00

5.00

8.00

10.00

10.00

991

1.00

4.00

8.00

10.00

10.00

992

1.00

4.00

7.00

10.00

10.00

1,008

0.00

3.00

7.00

10.00

10.00

1,009

0.00

3.00

7.00

10.00

10.00

1,025

0.00

3.00

6.00

10.00

10.00

1,026

0.00

3.00

6.00

10.00

10.00

1,042

0.00

2.00

5.00

9.00

10.00

1,043

0.00

2.00

5.00

9.00

10.00

1,059

0.00

1.00

5.00

8.00

11.00

1,060

0.00

1.00

5.00

8.00

11.00

1,076

0.00

1.00

4.00

8.00

11.00

1,077

0.00

1.00

4.00

7.00

11.00

1,093

0.00

0.00

3.00

7.00

10.00

1,094

0.00

0.00

3.00

7.00

10.00

1,110

0.00

0.00

3.00

6.00

10.00

1,111

0.00

0.00

3.00

6.00

10.00

1,127

0.00

0.00

2.00

5.00

9.00

1,128

0.00

0.00

2.00

5.00

9.00

1,144

0.00

0.00

1.00

5.00

8.00

1,145

0.00

0.00

1.00

5.00

8.00

1,161

0.00

0.00

1.00

4.00

8.00

1,162

0.00

0.00

1.00

4.00

7.00

1,178

0.00

0.00

0.00

3.00

7.00

1,179

0.00

0.00

0.00

3.00

7.00

1,195

0.00

0.00

0.00

3.00

6.00

1,196

0.00

0.00

0.00

3.00

6.00

1,212

0.00

0.00

0.00

2.00

5.00

1,213

0.00

0.00

0.00

2.00

5.00

1,229

0.00

0.00

0.00

1.00

5.00

1,230

0.00

0.00

0.00

1.00

5.00

1,246

0.00

0.00

0.00

1.00

4.00

1,247

0.00

0.00

0.00

1.00

4.00

1,263

0.00

0.00

0.00

0.00

3.00

1,264

0.00

0.00

0.00

0.00

3.00

1,348

0.00

0.00

0.00

0.00

0.00

1,349

0.00

0.00

0.00

0.00

0.00

Fortnightly Medicare half-levy adjustment

Adjustment amount, fortnightly half-levy

Fortnightly earnings
 $

1
 child
 $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

1,476

0.00

0.00

0.00

0.00

0.00

1,478

0.00

0.00

0.00

0.00

0.00

1,660

10.00

10.00

10.00

10.00

10.00

1,662

10.00

10.00

10.00

10.00

10.00

1,846

18.00

18.00

18.00

18.00

18.00

1,848

6.00

14.00

18.00

18.00

18.00

1,880

6.00

12.00

18.00

18.00

18.00

1,882

6.00

12.00

18.00

18.00

18.00

1,914

4.00

10.00

18.00

20.00

20.00

1,916

4.00

10.00

18.00

20.00

20.00

1,948

2.00

10.00

16.00

20.00

20.00

1,950

2.00

10.00

16.00

20.00

20.00

1,982

2.00

8.00

16.00

20.00

20.00

1,984

2.00

8.00

14.00

20.00

20.00

2,016

0.00

6.00

14.00

20.00

20.00

2,018

0.00

6.00

14.00

20.00

20.00

2,050

0.00

6.00

12.00

20.00

20.00

2,052

0.00

6.00

12.00

20.00

20.00

2,084

0.00

4.00

10.00

18.00

20.00

2,086

0.00

4.00

10.00

18.00

20.00

2,118

0.00

2.00

10.00

16.00

22.00

2,120

0.00

2.00

10.00

16.00

22.00

2,152

0.00

2.00

8.00

16.00

22.00

2,154

0.00

2.00

8.00

14.00

22.00

2,186

0.00

0.00

6.00

14.00

20.00

2,188

0.00

0.00

6.00

14.00

20.00

2,220

0.00

0.00

6.00

12.00

20.00

2,222

0.00

0.00

6.00

12.00

20.00

2,254

0.00

0.00

4.00

10.00

18.00

2,256

0.00

0.00

4.00

10.00

18.00

2,288

0.00

0.00

2.00

10.00

16.00

2,290

0.00

0.00

2.00

10.00

16.00

2,322

0.00

0.00

2.00

8.00

16.00

2,324

0.00

0.00

2.00

8.00

14.00

2,356

0.00

0.00

0.00

6.00

14.00

2,358

0.00

0.00

0.00

6.00

14.00

2,390

0.00

0.00

0.00

6.00

12.00

2,392

0.00

0.00

0.00

6.00

12.00

2,424

0.00

0.00

0.00

4.00

10.00

2,426

0.00

0.00

0.00

4.00

10.00

2,458

0.00

0.00

0.00

2.00

10.00

2,460

0.00

0.00

0.00

2.00

10.00

2,492

0.00

0.00

0.00

2.00

8.00

2,494

0.00

0.00

0.00

2.00

8.00

2,526

0.00

0.00

0.00

0.00

6.00

2,528

0.00

0.00

0.00

0.00

6.00

2,696

0.00

0.00

0.00

0.00

0.00

2,698

0.00

0.00

0.00

0.00

0.00

Monthly Medicare half-levy adjustment

Adjustment amount, monthly half-levy

Monthly
 earnings
 $

1
 child
 $

2
 children
 $

3
 children
 $

4
 children
 $

5
 children
 $

3,198.00

0.00

0.00

0.00

0.00

0.00

3,202.33

0.00

0.00

0.00

0.00

0.00

3,596.67

22.00

22.00

22.00

22.00

22.00

3,601.00

22.00

22.00

22.00

22.00

22.00

3,999.67

39.00

39.00

39.00

39.00

39.00

4,004.00

13.00

30.00

39.00

39.00

39.00

4,073.33

13.00

26.00

39.00

39.00

39.00

4,077.67

13.00

26.00

39.00

39.00

39.00

4,147.00

9.00

22.00

39.00

43.00

43.00

4,151.33

9.00

22.00

39.00

43.00

43.00

4,220.67

4.00

22.00

35.00

43.00

43.00

4,225.00

4.00

22.00

35.00

43.00

43.00

4,294.33

4.00

17.00

35.00

43.00

43.00

4,298.67

4.00

17.00

30.00

43.00

43.00

4,368.00

0.00

13.00

30.00

43.00

43.00

4,372.33

0.00

13.00

30.00

43.00

43.00

4,441.67

0.00

13.00

26.00

43.00

43.00

4,446.00

0.00

13.00

26.00

43.00

43.00

4,515.33

0.00

9.00

22.00

39.00

43.00

4,519.67

0.00

9.00

22.00

39.00

43.00

4,589.00

0.00

4.00

22.00

35.00

48.00

4,593.33

0.00

4.00

22.00

35.00

48.00

4,662.67

0.00

4.00

17.00

35.00

48.00

4,667.00

0.00

4.00

17.00

30.00

48.00

4,736.33

0.00

0.00

13.00

30.00

43.00

4,740.67

0.00

0.00

13.00

30.00

43.00

4,810.00

0.00

0.00

13.00

26.00

43.00

4,814.33

0.00

0.00

13.00

26.00

43.00

4,883.67

0.00

0.00

9.00

22.00

39.00

4,888.00

0.00

0.00

9.00

22.00

39.00

4,957.33

0.00

0.00

4.00

22.00

35.00

4,961.67

0.00

0.00

4.00

22.00

35.00

5,031.00

0.00

0.00

4.00

17.00

35.00

5,035.33

0.00

0.00

4.00

17.00

30.00

5,104.67

0.00

0.00

0.00

13.00

30.00

5,109.00

0.00

0.00

0.00

13.00

30.00

5,178.33

0.00

0.00

0.00

13.00

26.00

5,182.67

0.00

0.00

0.00

13.00

26.00

5,252.00

0.00

0.00

0.00

9.00

22.00

5,256.33

0.00

0.00

0.00

9.00

22.00

5,325.67

0.00

0.00

0.00

4.00

22.00

5,330.00

0.00

0.00

0.00

4.00

22.00

5,399.33

0.00

0.00

0.00

4.00

17.00

5,403.67

0.00

0.00

0.00

4.00

17.00

5,473.00

0.00

0.00

0.00

0.00

13.00

5,477.33

0.00

0.00

0.00

0.00

13.00

5,841.33

0.00

0.00

0.00

0.00

0.00

5,845.67

0.00

0.00

0.00

0.00

0.00

Other statements of formulas

Statements of formulas for other classes of payees are also available. These include:

       Statement of formulas for calculating study and training support loans components

       Tax table for individuals employed in the horticultural or shearing industry

       Tax table for actors, variety artists and other entertainers

       Tax table for seniors and pensioners

       Tax table for working holiday makers.

Tax file number (TFN) declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee, (ignoring any cents) if all of the following apply:

       they have not quoted their TFN

       they have not claimed an exemption from quoting their TFN

       they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for study and training support loans.

When your employee is a foreign resident

If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.

There are two ways you can withhold from a foreign resident’s earnings:

       If they have given you a valid TFN, use scale 3

       If they have not given you a valid TFN, use scale 4.

Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.

Withholding declarations

An employee may use a Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding from you.

Employees can also use a Withholding declaration to advise you of any changes to their situation that may affect the amount you need to withhold from their payments.

Changes that may affect the amount you need to withhold include:

       becoming or ceasing to be an Australian resident for tax purposes

       claiming or discontinuing a claim for the tax-free threshold

       advising of a HELP, VSL, FS, SSL or TSL debt, or changes to them

       entitlement to a seniors and pensioners tax offset.

When your employee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from an employee, it will replace the previous one.

An employee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.

When your employee has a study and training support loan debt

If your employee has a HELP, VSL, FS, SSL or TSL debt, you may need to withhold additional amounts from their payments. Your employee will need to notify you of this on their Tax file number declaration or Withholding declaration.

Next step:

To calculate additional withholding amounts for:

       HELP, VSL, FS, SSL or TSL debts, refer to either

-        Study and training support loans weekly tax table

-        Study and training support loans fortnightly tax table

-        Study and training support loans monthly tax table.

       Statement of formulas, refer to

-        Schedule 8 – Statement of formulas for calculating study and training support loans components

Employees who are entitled to a reduction of Medicare levy or do not have to pay the Medicare levy because of low family income, will not have to make a compulsory HELP, VSL, FS, SSL or TSL repayment for that year. The exemption from making a compulsory study and training support loans repayment may be claimed on the Medicare levy variation declaration.

Allowances

Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

For more information on when to withhold and report on allowances, refer to Withholding for allowances.

Leave loading

If you pay leave loading as a lump sum, use Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.

If you pay leave loading on a pro-rata basis, add the leave loading payment to earnings for that period to calculate withholding.

Holiday pay, long service leave and employment termination payments

Employees who continue working for you

You must include holiday pay (including any leave loading) and long service leave payments as part of normal earnings, except when they are paid on termination of employment.

For more information, see Withholding from leave payments for continuing employees.

Employees who stop working for you

This schedule does not cover any lump sum payments made to an employee who stops working for you.

If an employee has unused annual leave, leave loading or long service leave, refer to Tax table for unused leave payments on termination of employment.

Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments.

Do not withhold any amount for study and training support loans debt from lump sum termination payments.

Claiming tax offsets

If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration.

To work out the employee’s annual tax offset entitlement into a weekly, fortnightly, monthly or quarterly amount, refer to Tax offsets.

Do not allow for any tax offsets if any of the following apply:

       where no tax-free threshold is claimed

       you are using foreign resident rates

       when an employee does not provide you with their TFN.

Medicare levy adjustment

To claim the Medicare levy adjustment (available in certain situations), your employee must lodge a Medicare levy variation declaration with their Tax file number declaration.

Some employees may be liable for an increased rate of the Medicare levy surcharge as a result of the income for surcharge purposes tests. They can lodge a Medicare levy variation declaration, requesting you to increase the amount to be withheld from their payments.

Next step:

       Medicare levy adjustment


 

Schedule 2 – Tax table for individuals employed in the horticultural or shearing industry

 

For payments made on or after 13 October 2020

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by sections 12-35 of Schedule 1 to the TAA.

Next step:

       Use the Withholding lookup tool to quickly work out the amount to withhold (XLSX 33KB)

Using this schedule

You should use this table if you make payments to individuals in the horticultural industry who:

       work in any process associated with the production, cultivation or harvest of a horticultural crop

       perform the process on the grower’s property

       do not work for the same grower for a continuous period exceeding six months

       have given you a valid Tax file number declaration and have claimed the tax-free threshold.

Also, use this table if you make payments to individuals in the shearing industry such as shearers, crutchers, wool classers, cooks, shed hands and pressers who:

       have given you a valid Tax file number declaration (NAT 3092) and have claimed the tax-free threshold

       do not work for the same employer for a continuous period exceeding six months.

For all other circumstances, use the relevant PAYG withholding weekly or fortnightly tax table.

See also:

       You can download a printable version of Tax table for individuals employed in the horticultural or shearing industry (PDF 510KB) (NAT 1013) in Portable Document Format (PDF).

If you employ individuals under the Seasonal labour mobility program, this tax table does not apply. For these individuals you are required to withhold at 15%. For more information about the program, refer to Seasonal Worker Program.

If you employ individuals under a working holiday makers visa, you must use the Tax table for working holiday makers.

Working out the withholding amount

To work out the amount you need to withhold you must

1.         Input your employees total earnings into the Withholding lookup tool (XLSX 33KB).

2.         Use the appropriate column to find the correct amount to withhold 

           column 2 if the resident employee has given you a TFN

           column 3 if the resident employee has not given you a TFN

           column 4 if the foreign resident employee has given you a TFN

           column 5 if the foreign resident employee has not given you a TFN.

 

Example

An employee has earnings of $231.50.

To work out the correct amount to withhold, ignore cents, input $231 into the Withholding lookup tool (XLSX 33KB).

If the employee is:

       a resident employee and has given you a TFN, use column 2 to find the correct amount to withhold ($30)

       a resident employee and has not given you a TFN, use column 3 to find the correct amount to withhold ($108)

       a foreign employee and has given you a TFN, use column 4 to find the correct amount to withhold ($75)

       a foreign employee and has not given you a TFN, use column 5 to find the correct amount to withhold ($103).

Resident employees

The standard rate of withholding of 13% applies if an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding lookup tool (XLSX 33KB).

If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding lookup tool (XLSX 33KB).

When your employee is a foreign resident

If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.

There are two ways you can withhold from a foreign resident’s earnings:

       If they have given you a valid TFN, you must withhold amounts using the figures shown in column 4 of the Withholding lookup tool (XLSX 33KB).

       If they have not given you a valid TFN, you must withhold at 45% using the figures in column 5 of the Withholding lookup tool (XLSX 33KB).

Pay period

The rates in this tax table apply irrespective of the pay period.

Using a formula

The withholding amounts shown in this table can be expressed in mathematical form.

If you have developed your own payroll software package, you can use the formulas and coefficients outlined below.

The formulas comprise linear equations of the form y = ax, where:

       y is the amount to be withheld expressed in dollars

       x is earnings for the pay period, ignoring any cents

       a is the value of the coefficient as shown in Table A.

Table A: Resident or foreign resident rate

 

Resident (a)

Foreign resident (a)

Tax file number

0.13

0.325

No tax file number

0.47

0.45

Rounding of withholding amounts

The withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

Accounting software

Software written in accordance with the formulas in this tax table should be tested for accuracy against the Withholding lookup tool (XLSX 33KB). The results obtained when using the coefficients in this table may differ slightly from the Withholding lookup tool. The differences result from the rounding of components. Withholding calculated using either method is accepted.

Tax file number declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer-employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

       they have not quoted their TFN

       they have not claimed an exemption from quoting their TFN

       they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration that they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for study and training support loans.

Varying your PAYG withholding

If your employee believes that, for their circumstances, the amount you withhold will be too much, they may apply to us for a variation to reduce the amount of withholding.

For more information, refer to Varying your PAYG withholding.

 


 

 

Schedule 3 – Tax table for actors, variety artists and other entertainers

For payments made on or after 13 October 2020

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by section 12-35 of Schedule 1 to the TAA.

See also:

       Use the Withholding look-up tool to quickly work out the amount to withhold (XLSX, 56KB).

Using this schedule

You should use this schedule if you make payments to employees who are actors, variety artists and other entertainers who receive payments for their performances.

Do not use this schedule if you make payments to employees, or other individuals engaged under a contract, to perform in a promotional activity that is any one of the following:

       conducted in the presence of an audience

       intended to be communicated to an audience by print or electronic media

       for a film or tape

       for a television or radio broadcast.

For these types of payments, the Commissioner has varied the rate of withholding to 20% of the payment. For more information, refer to Performing artists contracted to perform promotional activity.

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including lump sum payments.

For all other relevant employees, refer to PAYG withholding Weekly tax table or Fortnightly tax table.

Do not use this schedule for payments made to foreign residents engaged as contractors. These payments are subject to foreign resident withholding. For more information, refer to Foreign resident entertainment, sports, construction and casino gaming activities.

When using this schedule, do NOT withhold an amount for:

       Higher Education Loan Program (HELP) debts

       VET Student Loan (VSL) debts

       Financial Supplement (FS) debts

       Student Start-up Loan (SSL) debts, or

       Trade Support Loan (TSL) debts.

When using this schedule, do NOT adjust the withholding amount for an employee who is claiming a Medicare levy exemption or reduction. Medicare levy variations do not apply to this schedule.

Next step:

       You can download a printable version of the Tax table for actors, variety artists and other entertainers (PDF, 479KB) (NAT 1023) in Portable Document Format (PDF).

Working out the withholding amount

This schedule is only applicable to those who have three performances per week and have claimed the tax-free threshold. If the number of performances per week is different, or the employee has not claimed the tax-free threshold, use the formulas to calculate withholding amounts.

To work out the amount you need to withhold using this schedule, you must:

1.    Ignore any cents, input the employee's daily earnings into the Withholding look-up tool (XLSX, 56KB) and refer to the corresponding amount to be withheld in column 2.

2.    If the employee has claimed any tax offsets, see Claiming tax offsets to work out the daily value of the amount claimed. Subtract the daily value of the tax offsets from the amount found in step 1.

Example

An employee has claimed the tax-free threshold, earns $279.35 daily, works three performances this week and claims tax offsets of $500. Ignoring cents, input $279 into the Withholding look-up tool (XLSX, 33KB) and refer to the corresponding amount to be withheld in column 2 of $24.00. Reduce this amount by the daily value of the tax offsets of $3.00 ($500 ÷ 52 ÷ 3 rounded to the nearest dollar).

The amount to withhold is $21.00 ($24.00 − $3.00).

Using a formula

The withholding amounts shown in this schedule can be expressed in a mathematical form.

If you have developed your own payroll software package, you can use the formulas and the coefficients outlined in table A and table B.

This section should be read with Statement of formulas for calculating amounts to be withheld.

The formulas comprise linear equations of the form y = ax − b where:

       y is the weekly withholding amount expressed in dollars

       x is the weekly earnings rounded down to whole dollars plus 99 cents, and

       a and b are the values of the coefficient for the formulas as shown in tables A and B.

Table A: Employee has claimed the tax-free threshold

Coefficients where tax-free threshold claimed

Weekly earnings
 (x) less than

a

b

$449

0

0

$548

0.1520

68.3462

$685

0.2320

112.1942

$901

0.1680

68.3465

$1,081

0.1752

74.8369

$1,602

0.2782

186.2119

$2,884

0.2760

182.7504

$4,326

0.3120

286.5965

$4,326 & over

0.3760

563.5196

Table B: Employee has not claimed the tax-free threshold

Coefficients where tax-free threshold not claimed

Weekly earnings
 (x) less than

a

b

$110

0.1520

0.1520

$463

0.1878

3.9639

$644

0.1752

-1.9003

$1,165

0.2782

64.4297

$2,447

0.2760

61.9132

$3,889

0.3120

150.0093

$3,889 & over

0.3760

398.9324

To work out withholding amounts using the formulas, you must:

1.      Ignore any cents, multiply the per performance earnings by the number of performances for the week to derive the weekly equivalent. Add 99 cents to the result.

2.      Calculate the weekly amount by applying the relevant coefficients from table A or B above, rounding to the nearest dollar.

3.      Divide this amount by the number of performances for the week to work out the per performance withholding amount. Multiply this amount by the number of performances per day to convert it to the daily earnings equivalent. Round the daily withholding amount to the nearest dollar.

If you pay your employees daily, rather than per performance, the amount to withhold (including reductions for tax offsets) should be worked out on a daily basis.

Example

Sandra has two performances for the week, one on Thursday and one on Saturday. Sandra earns $500.35 for each performance. She has claimed the tax-free threshold.

1.      $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99.

2.      $1,000.99 × 0.1752 − 74.8369 = $100.5365. Round to the nearest dollar = $101.

3.      $101 ÷ 2 = $50.50. Round to the nearest dollar = $51.

Therefore, the amount to withhold from each performance is $51. As there is only one performance per day, the daily withholding amount is the same as the per performance withholding amount.

Accounting software

Software written in accordance with the formulas in this schedule should be tested for accuracy against the Withholding look-up tool (XLSX, 33KB). The results obtained when using the coefficients in this schedule may differ slightly from the Withholding look-up tool. The differences result from the rounding of components. Withholding calculated using either method is accepted.

Tax file number (TFN) declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

       they have not quoted their TFN

       they have not claimed an exemption from quoting their TFN

       they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If an employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for study and training support loans.

Claiming tax offsets

If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration.

If your employee claims a tax offset, reduce the amount to be withheld from their earnings per performance by the value of the tax offset. The per performance value is the tax offset amount claimed divided by 52, divided by the number of performances per week. Round the result to the nearest dollar.

Do NOT allow for any tax offsets if any of the following apply:

       when no TFN has been provided

       you are using foreign resident rates

       the payee has not claimed the tax-free threshold.

Withholding declarations

An employee may use a Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding from you. For more information, see Claiming tax offsets.

Employees can also use a Withholding declaration to advise you of any changes to their situation that may affect the amount you need to withhold from their payments.

Changes that may affect the amount you need to withhold include:

       becoming or ceasing to be an Australian resident for tax purposes

       claiming or discontinuing a claim for the tax-free threshold

       advising of a HELP, VSL, FS, SSL or TSL debt , or changes to them.

When your employee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from an employee, it will replace the previous one.

An employee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.

When your employee is a foreign resident

If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.

There are two ways you can withhold from a foreign resident’s earnings:

       if they have not given you a valid TFN, you need to withhold 45% for each $1 of earnings (ignoring any cents)

       if they have given you a valid TFN, you need to withhold the amount calculated using the foreign resident tax rates, rounding any cents to the nearest dollar.

Foreign resident tax rates

Weekly tax rates

Weekly earnings
 $

Weekly rate

0 to 2,306

32.5 cents for each dollar of earnings

2,307 to 3,460

$749 plus 37 cents for each $1 of
 earnings over $2,306

3,461 and over

$1,176 plus 45 cents for each $1 of
 earnings over $3,460

Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.

 


 

Schedule 4 – Tax table for return to work payments

For payments made on or after 1 July 2018

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by section 12-50 of Schedule 1 to the TAA.

Using this schedule

You should use this schedule if you pay an individual to resume working for, or providing services to, you or any other entity.

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including return to work payments.

We have a calculator to help you work out the correct amount of tax to withhold from payments to most employees. To access the calculator, refer to Tax withheld calculator.

Working out the withholding amount

To work out the amount you need to withhold, multiply the amount of the return to work payment by 34.5% (32.5% + 2.0% Medicare levy).

Example

George previously worked for IT Services Pty Ltd. Due to a shortage in IT personnel, IT Services Pty Ltd offered George a position if he would return to work for it.

He was paid $18,000 to start work, in addition to his salary.

The total amount IT Services Pty Ltd must withhold from the return to work payment is 34.5% × $18,000 = $6,210.

Rounding of withholding amounts

Withholding amounts calculated should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.

Tax file number declarations

The answers your employees provide on their Tax file number declaration (NAT 3092) determine the amount you need to withhold from their payments. A Tax file number declaration applies to payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) if all of the following apply:

       they have not quoted their tax file number (TFN )

       they have not claimed an exemption from quoting their TFN

       they have not advised you that they have applied for a TFN or made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals (NAT 1432), they have 28 days to give you their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment made to a resident employee and 45% from any payment made to a foreign resident employee (ignoring any cents) unless we tell you not to.

 


 

Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments

For payments made on or after 13 October 2020

Withholding limit

There is a withholding limit of 47% on tax withheld from any additional payments calculated using an annualised method.

Applying this withholding limit may result in withholding not being sufficient to cover some employees' end of year tax liability. In these situations, an employee can ask their employer to increase their withholding for the remainder of the financial year.

This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953. It applies to certain withholding payments covered by Subdivisions 12-B (except sections 12-50 and 12-55), 12-C (except sections 12-85 and 12-90) and 12-D of Schedule 1 paid as a lump sum.

Using this schedule

Use this schedule if you make a payment of salary or wages which is:

       a back payment (including lump sum payments in arrears)

       a commission

       a bonus or similar payment.

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including back payments, commissions and bonuses or similar payments.

Other payments you should use this schedule for

These payments include back payments of:

       compensation or sickness or accident payments for an incapacity for work that are not tax exempt

       Australian Government education or training payments – for example, Austudy or ABSTUDY

       assessable pensions, benefits and allowances under the Social Security Act 1991 or the Veterans’ Entitlements Act 1986, or similar payments made under a law of a foreign country, state or province.

Back payments (including lump sums in arrears)

A back payment is a payment that was meant to have been made in a prior period. For example:

       your employee’s wages were underpaid due to an error or oversight

       an allowance you were due to pay in July was overlooked and you made the payment in December.

A back payment is distinct from a bonus, which is a payment made for recognition of performance including past performance. A bonus (or similar payment) can only be considered a back payment if you paid the bonus later than the time that it should have been paid.

If you normally process payments in a pay period later than when the work is performed for example, overtime payments paid with a time lag of one pay period, they are not considered back payments. These payments are treated as part of the normal pay cycle when paid and withholding is calculated on total earnings for that period. An overtime payment is only considered a back payment if it was meant to have been made in a prior pay period.

Commissions

Commissions are typically payments made as recognition of performance or service, and may be calculated as a percentage of the proceeds from a particular transaction or series of transactions.

Bonuses and similar payments

A bonus is usually made to an employee in recognition of performance or services, and may be calculated as a percentage of the proceeds from a particular business transaction. These payments may not necessarily be related to a particular period of work.

A payment will be treated as similar to a bonus if it is of a one-off nature that does not relate to work performed in a particular period. Examples include:

       a once-only payment made to a payee as compensation for a changed work location

       an amount paid as a sign-on bonus to a payee entering a workplace agreement

       any lump sum allowance.

Leave loading

Payment of leave loading can also be regarded as a payment similar to a bonus, if it is made as a lump sum and not on a pro-rata basis as leave is taken. If you pay leave loading on a pro rata basis, add it to earnings for the period to calculate withholding using the standard tax tables.

Tax file number (TFN) declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

       they have not quoted their TFN

       they have not claimed an exemption from quoting their TFN

       they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for tax offsets or Medicare levy adjustment. Do not withhold any amount for study and training support loans.

Terms we use

Additional payments

Additional payments include back payments (including lump sum payments in arrears), commissions, bonuses and similar payments.

Normal earnings

Normal earnings are gross taxable earnings and include all salary and wage income, taxable allowances, and overtime earnings for the current financial year. This includes any back payments previously made using Method B(i).

At the start of a financial year, an employee’s normal earnings can be based on the last full pay period worked in the previous financial year.

If an employee’s pay fluctuates significantly, you can use an average of gross taxable earnings for the current financial year (or, if applicable, the previous financial year).

If an employee has no current or past normal earnings (for example, the employee is newly employed), you can include expected future earnings in your calculations. This can be based on the employee’s contracted or expected salary for the financial year.

For the purposes of this table, normal earnings do not include employment termination payments or unused leave payments made on termination of employment.

Average total earnings

Average total earnings are the sum of all normal earnings paid in the current financial year, including current pay, plus any current year back payments if Method B(i) is used to calculate withholding. Then divide the total earnings by the number of pay periods to date (including the current pay period).

Pay periods per financial year

Pay periods per financial year refers to a total of 52 pay periods if paid weekly, 26 pay periods if paid fortnightly or 12 pay periods if paid monthly. No adjustments are required for a 53 week / 27 fortnight year.

Withholding limit

If your employee has a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt, see Study and training support loans and additional payments.

If you use Method A or Method B(ii), the amount of tax to be withheld from an additional payment is limited to a maximum of 47% of the additional payment.

If the withholding amount calculated (including a study and training support loan component) using Method A or Method B(ii) exceeds 47% of the additional payment being made, then the amount is reduced to be equal to 47% of that payment. The withholding limit applies to the additional payment only and not to normal earnings for the current pay period.

For some employees, the withholding limit may result in their withholding amounts not being sufficient to cover their end-of-year tax liability, as their total earnings for the financial year may exceed the study and training support loan repayment threshold or attract a higher rate of tax. Under these circumstances, your employee can arrange an upwards variation by entering into an agreement with you to vary the rate or amount of withholding.

For more information about withholding variations, refer to:

       Variations – for employers

       Varying your PAYG withholding – for employees.

For more information about HELP, SSL, TSL and Financial Supplement repayment thresholds, see Study and training loan repayment thresholds and rates.

Working out the withholding amount

To work out the amount you need to withhold from an additional payment, you must use either Method A or Method B.

Using Method B is more complex but produces a withholding amount that more closely approximates the actual tax payable.

Calculations made using either method are acceptable to work out the withholding amount. If your calculation using either method results in a negative amount, treat the result as nil.

Using Method A

Use this method for any additional payments made regardless of the financial year the additional payment applies to. This includes all back payments, commissions, bonuses or similar payments.

This method calculates withholding by apportioning additional payments made in the current pay period over the number of pay periods in a financial year, and applying that average amount to the gross earnings in the current pay period.

If you are paying a commission, bonus or similar payment for a defined period of less than 12 months, you can choose to calculate withholding by using the number of pay periods the payment relates to at step 3. For example, if a commission relates to four weeks and the employee is paid weekly, you divide the commission by four pay periods at step 3, rather than 52 pay periods.

Method A instructions

Step

Instruction

1

Work out your employee’s gross earnings excluding any additional payments for the current pay period. Ignore any cents.

2

Use the relevant tax table to find the amount to be withheld from your employee’s gross earnings in step 1.

3

Add any additional payments to be made in the current pay period together and divide the total by the number of pay periods in the financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Ignore any cents.

4

Add the amount at step 3 to the gross earnings at step 1.

5

Use the relevant tax table to find the amount to be withheld from the amount at step 4.

6

Subtract the amount at step 2 from the amount at step 5.

7

Multiply the amount at step 6 by the number of pay periods used in step 3.

8

Multiply the additional payment being made in the current pay period by 47%.

9

Use the lesser amount of step 7 and step 8 for the withholding on the additional payment. Ignore any cents.

10

Work out the total PAYG withholding for the current pay period by adding the withholding on the additional payment (step 9) to the withholding on the gross earnings (step 2).

Using Method B

Use Method B(i) for any back payments applied to specific periods in the current financial year.

Use Method B(ii) for either:

       back payments that relate to a prior financial year

       any additional payments (including commissions, bonuses or similar payments) that don’t relate to a single pay period regardless of the financial year the additional payment applies to.

If you are making back payments applying to current and previous financial years, apportion the back payment between those years and then use the applicable method for each component to calculate withholding.

If you are making multiple additional payments:

       in the current pay period, you first need to calculate withholding on the total of any current financial year back payments (including lump sum in arrears) then calculate the withholding on any other additional payments

       in the current financial year (that is, you made an additional payment to the employee in a previous pay period), do not recalculate the withholding for the additional payment previously made.

B(i) Back payments applied to specific periods in the current financial year

This method recalculates withholding for each pay period the back payment applies.

Method B(i) instructions

Step

Instruction

1

Work out how much of the back payment applied to each earlier pay period in the current financial year.

2

For the first affected pay period, add the back payment relevant to that period to the normal earnings previously paid to get total earnings for that period.

3

Use the relevant tax table to find the amount to be withheld from the total earnings for that period.

4

Subtract the amount previously withheld for the period from the amount at step 3.

5

Repeat steps 2–4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the back payment.

6

Use the relevant tax table to find the amount to be withheld from your employee’s gross earnings (excluding additional payments) for the current pay period.

7

Work out the total PAYG withholding for the current pay period by adding the withholding on the back payment (step 5) to the withholding on the gross earnings (step 6).

B(ii) Additional payments applied over the whole financial year

This method calculates withholding by averaging all additional payments made in the current financial year over the number of pay periods in a financial year, and applying that to the average total earnings to date.

Method B(ii) instructions

Step

Instruction

1

Calculate the average total earnings paid to your employee over the current financial year to date. Ignore any cents.

2

Use the relevant tax table to find the amount to be withheld from the average total earnings in step 1.

3

Add all additional payments made in the current financial year if Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Ignore any cents.

4

Add the amount at step 3 to the average total earnings at step 1.

5

Use the relevant tax table to find the amount to be withheld from the amount at step 4.

6

Subtract the amount at step 2 from the amount at step 5.

7

Multiply the amount in step 6 by the number of pay periods used in step 3.

8

Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7.

9

Multiply the additional payment being made in the current pay period by 47%.

10

Use the lesser amount of step 8 and step 9 for the withholding on the additional payment. Ignore any cents.

11

Use the relevant tax table to find the amount to be withheld from your employee’s gross earnings (excluding additional payments) for the current pay period.

12

Work out the total PAYG withholding for this pay period by adding the withholding on the additional payment (step 10) to the withholding on the gross earnings (step 11).

Commissions, bonuses or similar payments

If a commission, bonus or similar payment relates to work your employee performed for more than one pay period (or for an undefined period), calculate withholding by applying either Method A or Method B(ii).

Do not use this schedule for payments for a single pay period.

If the commission, bonus or similar payment relates to work your employee performed in a single pay period (for example, a week, a fortnight or a month) the amount is added to all their other earnings for the current period. Withholding is then calculated using the standard PAYG withholding tax tables.

Study and training support loans and additional payments

If your employee has advised you they have a Higher Education Loan Program (HELP), VET Student Loan (VSL), Financial Supplement (FS), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt on their Tax file number declaration or Withholding declaration, you must also withhold from the additional payment using the relevant study and training support loans tax tables.

Calculate the amounts you need to withhold from additional payments for study and training support loans by using the same method you used to calculate the PAYG withholding amount from the additional payment.

For example, if you calculate the amount to be withheld from the additional payment using Method A, use the same method to calculate the amounts to be withheld for study and training support loans purposes.

How to calculate withholding on the additional payment if it is calculated separately to the study and training support loans components

If you calculate withholding separately, you need to make sure that the withholding limit in Method A and Method B(ii) applies to the combined total calculated for the additional payment and the study and training support loans components. For example, at step 9 in Method A, you must combine the amounts from the two separate calculations used for step 7 before comparing it to the amount calculated at step 8.

Next step:

You can use the following schedule that combine PAYG withholding with study and training support loan instead of repeating the calculation separately for each component:

       Schedule 8 – Statement of formulas for calculating study and training support loans components

The results obtained when using the coefficients in the above schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. Either calculation is acceptable.

Copies of all the tax tables are available – refer to Tax tables.

Variations

If your employee has a withholding variation in place for the current financial year, use one of the following to work out the amount of withholding from additional payments:

       the varied rate – if the relevant income is specified in the variation notice

       this tax table – if the relevant income is not specified in the variation notice.

If your employee had a withholding variation in place at the time the additional payment accrued but the withholding variation is no longer in effect when the additional payment is made, it does not apply when working out the amount to withhold.

If you need help to determine whether to use a withholding variation to work out the amount to withhold from an additional payment, phone us on 1300 360 221.

Leave without pay

For the purposes of this table, any periods where your employee has taken leave without pay do not affect the calculations outlined in each of the methods.

For example, for Method A and Method B(ii), you are still required at step 3 to apportion all additional payments made by the total number of pay periods in a financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods).

Superannuation income streams

To work out the amount you need to withhold from the taxable component of back payments of super income streams (pensions and annuities), including lump sum payments in arrears, use either Method A or B.

End-of-year reporting

You must record back payments on your employee’s payment summary, or in a pay event when reporting under Single Touch Payroll. What payment summary you use depends on whether the back payments relate to a superannuation income stream or previous period of assessable foreign service. Use:

       PAYG payment summary – individual non-business for all back payments except those for super income streams or if they were related to a previous period of assessable foreign service

       PAYG payment summary – superannuation income stream for super income stream payments

       PAYG payment summary – foreign employment for payments related to a previous period of assessable foreign service.

 

For more information about payment summaries, refer to PAYG payment summaries: forms and guidelines. For more information about Single Touch Payroll, and what can and cannot be reported, refer to Single Touch Payroll employer reporting guidelines – What you need to report.

Completing the individual non-business payment summary

For payments accrued in the current financial year include the total:

       gross amount of all payments at ‘Gross payments’

       amount withheld at ‘Total tax withheld’.

Salary and wage income (including allowances) accrued before the current financial year

For each payment accrued in a prior financial year, but not more than 12 months before the date of payment include the total:

       gross amount of the payment at ‘Gross payments’ or ‘Allowances’

       amount withheld at ‘Total tax withheld’.

For each payment accrued more than 12 months before the date of payment of less than $1,200, include the total:

       gross amount of the payment at ‘Gross payments’ or ‘Allowances’

       amount withheld at ‘Total tax withheld’.

For each payment accrued more than 12 months before the date of payment of $1,200 or more, include the total:

       gross amount of the payment (including allowances) at ‘Lump sum E’

       amount withheld at ‘Total tax withheld’.

For each payment that accrued before and after 12 months, apportion the payment between the two periods. If the portion of the payment that accrued after 12 months from the date of payment is $1,200 or more, include the:

       gross amount of the payment at ‘Lump sum E’

       amount withheld at ‘Total tax withheld’.

Other amounts accrued before the current financial year

These other amounts are described in Other payments you should use this schedule for.

For each payment accrued in a prior financial year of less than $1,200, include the total:

       gross amount of the payment at ‘Gross payments’

       amount withheld at ‘Total tax withheld’.

For each payment accrued in a prior financial year of $1,200 or more, include the total:

       gross amount of the payment at ‘Lump sum E’

       amount withheld at ‘Total tax withheld’.

Employee letter

You must also provide your employee with a letter specifying:

       the financial years over which the amount accrued, and

       the gross amount that accrued each financial year.

Completing the superannuation income stream payment summary

For payments accrued in the current financial year, include:

       the component amounts at both

           ‘Taxable component’ (both taxed and untaxed elements if applicable)

           ‘Tax-free component’

       the amount withheld at ‘Total tax withheld’.

For payments accrued prior to the current financial year, include:

       the component amounts at both

           ‘Lump sum in arrears – taxable component’ (both taxed and untaxed elements if applicable)

           ‘Lump sum in arrears – tax-free component’

       the amount withheld at ‘Total tax withheld’.

Payee letter

You must also provide your payee with a letter specifying:

       the financial years over which the amount accrued, and

       the gross amount that accrued each financial year.

Completing the foreign employment payment summary

Note: For the foreign employment payment summary, the gross payments amount is assessable foreign employment income, which includes total allowances.

For salary and wage payments accrued in the current financial year, include the total:

       gross amount of all payments at ‘Gross payments’

       amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’

       amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued in a prior financial year, but not more than 12 months before the date of payment, include the total:

       gross amount of the payment at ‘Gross payments’

       amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’

       amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued more than 12 months before the date of payment of less than $1,200, include the total:

       gross amount of the payment at ‘Gross payments’

       amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’

       amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

For each salary and wage payment accrued more than 12 months before the date of payment of $1,200 or more, include the total:

       gross amount of the payment at ‘Lump sum E’

       amount withheld and paid to a foreign tax jurisdiction (if applicable) at ‘Foreign tax paid’

       amount withheld for Australian tax purposes at ‘Total Australian tax withheld’.

Employee letter

You must also provide your employee with a letter specifying:

       the financial years over which the amount accrued, and

       the gross amount that accrued each financial year.

Examples

Example 1: Withholding from a bonus payment using Method A

Mark, who has an accumulated HELP debt, is due to receive an annual bonus of $900. Mark earns $1,500 per week. Using Method A, calculate the withholding amount for the current pay period as follows:

PAYG withholding component – for Example 1

Step

Instruction

Result

1

Work out Mark’s gross earnings for the current pay period.

$1,500

2

Use the relevant tax table to find the amount to be withheld from Mark’s gross earnings in step 1.

$335

3

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