{"id":"F2005L01270","name":"Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)","slug":"taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":34972,"registerId":"commonwealth-F2005L01270-current","compilationNumber":null,"startDate":"2026-04-01","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"division","heading":"Name of instrument","content":"### 1 Name of instrument\n\nThis instrument is the Taxation Administration Act Withholding Schedules 2005 (2004 Budget Changes).","sortOrder":0},{"sectionNumber":"2","sectionType":"division","heading":"Commencement","content":"### 2 Commencement\n\nThis instrument commences on 1 July 2005.","sortOrder":1},{"sectionNumber":"3","sectionType":"division","heading":"Purpose","content":"### 3 Purpose\n\n (1) Withholding schedules specify the amounts, formulas and procedures to be used for working out the amount required to be withheld by an entity from a withholding payment covered by Subdivision 12-B, 12-C or 12-D of Schedule 1 of the Taxation Administration Act 1953.\n (2) 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 Chapter 5A of the Higher Education Act 1988.","sortOrder":2},{"sectionNumber":"4","sectionType":"division","heading":"Withholding Schedules","content":"### 4 Withholding Schedules\n\nEach of Schedules 1-B to 22-B, listed in the table below, has effect:\n\n \n\n| Schedule number | NAT number | Title |\n| --------------- | ------------ | ------------------------------------------------------------------------------------------------ |\n| 1-B | 1004B-5.2005 | Statement of formulas for calculating amounts to be withheld |\n| 2-B | 1005B-5.2005 | Weekly tax table incorporating Medicare levy with and without leave loading |\n| 3-B | 1006B-5.2005 | Fortnightly tax table incorporating Medicare levy with and without leave loading |\n| 4-B | 1007B-5.2005 | Monthly tax table incorporating Medicare levy with and without leave loading |\n| 5-B | 1008B-5.2005 | Weekly tax table with no and half Medicare levy including Medicare levy adjustment |\n| 6-B | 1010B-5.2005 | Medicare levy adjustment weekly tax table |\n| 7-B | 1011B-5.2005 | Medicare levy adjustment fortnightly tax table |\n| 8-B | 1012B-5.2005 | Medicare levy adjustment monthly tax table |\n| 9-B | 1023B-5.2005 | Special tax tables for actors, variety artists and other entertainers |\n| 10-B | 1024B-5.2005 | Special daily rates tax table incorporating Medicare levy, including Statement of formulas |\n| 11-B | 2173B-5.2005 | Higher Education Loan Programme (HELP) weekly tax table (including statement of formulas) |\n| 12-B | 2185B-5.2005 | Higher Education Loan Programme (HELP) fortnightly tax table (including statement of formulas) |\n| 13-B | 2186B-5.2005 | Higher Education Loan Programme (HELP) Monthly tax table (including statement of formulas) |\n| 14-B | 2335B-5.2005 | Statement of formulas for calculating Higher Education Loan Programme (HELP) component |\n| 15-B | 2446B-5.2005 | Statement of formulas for calculating withholding amounts for Members of the Defence Force |\n| 16-B | 3305B-5.2005 | Statement of Formulas for calculating Student Financial Supplement Scheme (SFSS) component |\n| 17-B | 3306B-5.2005 | Student Financial Supplement Scheme (SFSS) weekly tax table including statement of formulas |\n| 18-B | 3307B-5.2005 | Student Financial Supplement Scheme (SFSS) fortnightly tax table including statement of formulas |\n| 19-B | 3308B-5.2005 | Student Financial Supplement Scheme (SFSS) monthly tax table including statement of formulas |\n| 20-B | 3479B-5.2005 | Quarterly tax table incorporating Medicare levy with and without leave loading |\n\n \n\n| 21-B | 3539B-5.2005 | Coefficients for calculating weekly withholding amounts incorporating Student Financial Supplement Scheme (SFSS) component and Higher Education Contribution Scheme (HECS) or Higher Education Loan Programme (HELP) component |\n| ---- | ------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| 22-B | 4466B-5.2005 | Special tax table for aged pensioners and low income aged persons (Senior Australians) |","sortOrder":3},{"sectionNumber":"5","sectionType":"division","heading":"Revocation of current schedules","content":"### 5 Revocation of current schedules\n\nThe withholding schedules listed below, notified in the Commonwealth of Australia Special Gazette number S232 on 28 June 2004, are revoked:\n\nPay as you go (PAYG) withholding Tax Tables\n\n| NAT | 1004-06.2004 | Statement of formulas for calculating amounts to be withheld |\n| --- | ------------ | ------------------------------------------------------------------------------------------ |\n| NAT | 1005-5.2004 | Weekly tax table incorporating Medicare levy with and without leave loading |\n| NAT | 1006-5.2004 | Fortnightly tax table incorporating Medicare levy with and without leave loading |\n| NAT | 1007-5.2004 | Monthly tax table incorporating Medicare levy with and without leave loading |\n| NAT | 1008-6.2004 | Weekly tax table with no and half Medicare levy including Medicare levy adjustment |\n| NAT | 1010-6.2004 | Medicare levy adjustment weekly tax table |\n| NAT | 1011-6.2004 | Medicare levy adjustment fortnightly tax table |\n| NAT | 1012-6.2004 | Medicare levy adjustment monthly tax table |\n| NAT | 1023-6.2004 | Special tax tables for actors, variety artists and other entertainers |\n| NAT | 1024-6.2004 | Special daily rates tax table |\n| NAT | 2173-6.2004 | HECS weekly tax table |\n| NAT | 2185-6.2004 | HECS fortnightly tax table |\n| NAT | 2186-6.2004 | HECS monthly tax table |\n| NAT | 2335-06.2004 | Statement of formulas for calculating HECS component |\n| NAT | 2446-6.2004 | Statement of formulas for calculating withholding amounts for Members of the Defence Force |\n| NAT | 3305-06.2004 | Statement of formulas for calculating SFSS component |\n| NAT | 3306-6.2004 | SFSS weekly tax table |\n| NAT | 3307-6.2004 | SFSS fortnightly tax table |\n| NAT | 3308-6.2004 | SFSS monthly tax table |\n| NAT | 3479-6.2004 | Quarterly tax table incorporating Medicare levy with and without leave loading |\n\n \n\n| NAT | 3539-6.2004 | Coefficients for calculating weekly withholding amounts incorporating SFSS component and HECS component |\n| --- | ----------- | ------------------------------------------------------------------------------------------------------- |\n| NAT | 4466-6.2004 | Special tax table for aged pensioners and low income aged persons (Seniors Australians) |","sortOrder":4},{"sectionNumber":"Coefficients for calculation of amounts ","sectionType":"section","heading":"Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments","content":"###### Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments\n\n```html\n

Where tax-free threshold NOT claimed in Tax file number declaration

Scale 1

Where payee is eligible to receive leave loading and has claimed tax-free threshold

Scale 2

Foreign residents

Scale 3

Where tax file number not provided by payee

Scale 4

Weekly earnings

(x) less than

Weekly earnings

(x) less than

Weekly earnings

(x) less than

$

a

b

$

a

B

$

a

b

Earnings

Tax rate

98

0.1850

0.1850

110

—-

—-

415

0.2900

0.2900

Resident

894

0.3150

12.9350

301

0.1725

19.0281

1211

0.3000

4.4438

$1 & over

0.4850

1221

0.4350

120.2427

325

0.3756

80.2002

1538

0.4200

149.8285

1221 & over

0.4850

181.3004

409

0.1878

19.0497

1538 & over

0.4700

226.7515

1205

0.3150

71.1038

Foreign resident

1532

0.4350

215.7500

$1 & over

0.4700

1532 & over

0.4850

292.3654

\n```\n\n```html\n

Where payee claimed FULL exemption from Medicare levy in Medicare levy variation declaration

Scale 5

Where payee claimed HALF exemption from Medicare levy in Medicare levy variation declaration

Scale 6

Where payee not eligible to receive leave loading and has claimed tax-free threshold

Scale 7

Weekly earnings

(x) less than

Weekly earnings

(x) less than

Weekly earnings

(x) less than

$

a

b

$

a

b

$

a

b

110

—-

—-

110

-—

—-

112

—-

—-

409

0.1725

19.0281

409

0.1725

19.0281

305

0.1700

19.0400

1205

0.3000

71.2050

509

0.3000

71.2050

330

0.3700

80.2015

1532

0.4200

215.8512

551

0.4000

122.1935

415

0.1850

19.0413

1532 & over

0.4700

292.4665

1205

0.3075

71.2064

1211

0.3150

73.0413

1532

0.4275

215.8525

1538

0.4350

218.4259

1532 & over

0.4775

292.4679

1538 & over

0.4850

295.3489

\n```\n\nNotes:\n\n 1. If you have 27 fortnightly, or 53 weekly pays in a financial year see page 2 for information on withholding additional amounts from payee earnings.\n 2. For Scale 4 no coefficents are necessary. To calculate withholding apply tax rate to earnings, ignoring any cents.\n 3. Scales 1, 2, 3, 5, 6 and 7 may be applied only where payees have provided their tax file number.\n 4. Family tax benefit and tax offsets for dependants and zones may be allowed only where Scales 2, 5, 6 or 7 are applied.\n 5. Scales 1, 2, 4, 6 and 7 incorporate the Medicare Levy.\n 6. For Scale 2 no Medicare levy is payable by a person whose taxable income for the year is $15,902 ($301 per week) or less.\n\n7. Where the taxable income exceeds $15,902 but is less than $17,191 ($325 per week), the levy is shaded in at the rate of 20% of the excess over $15,902. Where a person’s taxable income is $17,191 ($325 per week) or more, Medicare is levied at the rate of 1.50% of total taxable income.\n\n 8. The Medicare levy is also shaded in for Scales 6 and 7. The Medicare levy parameters for Scales 2, 6 and 7 are as follows:","sortOrder":5},{"sectionNumber":"Medicare levy parameters","sectionType":"subdivision","heading":"Medicare levy parameters","content":"#### Medicare levy parameters\n\n```html\n

Scale 2

Scale 6

Scale 7

OLD

NEW

OLD

NEW

OLD

NEW

Weekly earnings threshold

294

301

497

509

298

305

Weekly earnings shade-in threshold

318

325

538

551

322

330

Medicare levy family threshold

25885

26514

25885

26514

26205

26834

Weekly family threshold divisor

52

52

52

52

52

52

Additional child

2406

2464

2406

2464

2406

2464

Shading out point multiplier

0.2000

0.2000

0.1000

0.1000

0.2000

0.2000

Shading out point divisor

0.1850

0.1850

0.0925

0.0925

0.1850

0.1850

Weekly levy adjustment factor

294.1400

301.2000

497.7900

509.8800

298.6300

305.8100

Medicare levy

0.0150

0.0150

0.0075

0.0075

0.0150

0.0150

\n```","sortOrder":6},{"sectionNumber":"Other formulas","sectionType":"subdivision","heading":"Other formulas","content":"#### Other formulas\n\nStatements of formulas for other classes of payees are also available. These include:\n\n  PAYG withholding – statement of formulas for calculating HELP component (NAT 2335)\n  PAYG withholding – statement of formulas for calculating SFSS component (NAT 3305)\n  PAYG withholding – coefficients for calculating withholding amounts incorporating SFSS component and HECS or HELP component (NAT 3539)\n  PAYG withholding – special tax table for individuals seasonally employed in the horticultural industry, including statement of formulas (NAT 1013)\n  PAYG withholding – special tax table for individuals employed in the shearing industry, including statement of formulas (NAT 1014)\n  PAYG withholding – special tax table for actors, variety artists and other entertainers (NAT 1023)\n  PAYG withholding – special tax table for daily rate, including Medicare levy (NAT 1024), and\n  PAYG withholding – special tax table for Senior Australians (NAT 4466).\n\n![](image.003.png) See page 10 for other tax tables and publications available and how you can access them.","sortOrder":7},{"sectionNumber":"Formulas","sectionType":"subdivision","heading":"Formulas","content":"#### Formulas\n\nThe formulas comprise linear equations of the form y = ax – b, where y is the weekly withholding amount expressed in dollars, and x is the number of whole dollars in the weekly earnings plus 99 cents. The values of the coefficients a and b 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) are shown on page 1.\n\nPlease note that the formulas relate only to the calculation of withholding amounts before any family tax benefit (FTB), tax offset for dependants, Medicare adjustments, etc, are allowed. Instructions on the treatment of FTB, tax offsets and Medicare levy adjustments are shown on pages 3 and 4.\n\nGeneral information on withholding amounts, allowances, eligible termination payments and unused annual leave and long service leave payments on termination are found on pages 9 and 10.\n\nSample data for verifying that the software program is calculating the correct withholding amounts and Medicare levy adjustments are shown on pages 5 to 8.","sortOrder":8},{"sectionNumber":"Rounding of withholding amounts","sectionType":"subdivision","heading":"Rounding of withholding amounts","content":"#### Rounding of withholding amounts\n\nWithholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Values terminating in exactly 50 cents are rounded to the next higher\n\ndollar. This rounding should be done directly (that is, a preliminary rounding to the nearest cent should not be made).\n\nUse these rounding rules across all scales, except Scale 4 (where tax file number not provided by payee). For Scale 4, cents are ignored when withholding amounts are calculated.\n\n![](image.004.png) Withholding amounts calculated using these formulas, where earnings exceed $3,200 fortnightly, $6,933.33 monthly or $20,800 quarterly, may vary slightly to those calculated using the method set out in the footnote to the appropriate PAYG withholding tax table.","sortOrder":9},{"sectionNumber":"When there are 53 pay periods in a finan","sectionType":"subdivision","heading":"When there are 53 pay periods in a financial year","content":"#### \nWhen there are 53 pay periods in a financial year\n\nWeekly payers may in some years pay their payees 53 times instead of the usual 52. As this schedule is based on 52 pays, the extra pay may result in insufficient amounts being withheld. Payers are asked to tell their payees when this occurs. Those payees who are concerned about a shortfall, may request their payer to withhold the additional amounts shown in the table below:\n\n| Weekly earnings | Additional withholding |\n| --------------- | ---------------------- |\n| $ | $ |\n| 420 to 1,199 | 1 |\n| 1,200 to 1,524 | 4 |\n| 1,525 and over | 5 |","sortOrder":10},{"sectionNumber":"When there are 27 pay periods in a finan","sectionType":"subdivision","heading":"When there are 27 pay periods in a financial year","content":"#### When there are 27 pay periods in a financial year\n\nFortnightly payers may in some years pay their payees 27 times instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. Payers are asked to tell their payees when this occurs. Those payees who are concerned about a shortfall, may request their payer to withhold the additional amounts shown in the table below:\n\n| Fortnightly earnings | Additional withholding |\n| -------------------- | ---------------------- |\n| $ | $ |\n| 840 to 2,399 | 5 |\n| 2,400 to 3,049 | 16 |\n| 3,050 and over | 21 |","sortOrder":11},{"sectionNumber":"Calculation of weekly earnings","sectionType":"subdivision","heading":"Calculation of weekly earnings","content":"#### Calculation of weekly earnings\n\nThe method of determining the weekly earnings (x) for the purpose of applying the formulas is as follows:\n\nExample:\n\n| Weekly income | $367.59 |\n| ------------------------------------ | ------- |\n| Add allowance subject to withholding | $9.50 |\n| Ignore cents | $377.00 |\n| Add 99 cents | $0.99 |\n| Weekly earnings | $377.99 |","sortOrder":12},{"sectionNumber":"Fortnightly, monthly or quarterly withho","sectionType":"subdivision","heading":"Fortnightly, monthly or quarterly withholding amounts","content":"#### Fortnightly, monthly or quarterly withholding amounts\n\nFirst calculate the weekly equivalent of fortnightly, monthly or quarterly earnings as follows:\n\n  Where paid fortnightly, divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by 2. Ignore any cents in the result and then add 99 cents.\n  Where paid monthly, obtain the sum of the monthly earnings and the amount of any allowance subject to withholding (if the result is an amount ending in 33 cents, add 1 cent), multiply this amount by 3 and then divide by 13. Ignore any cents in the result and then add 99 cents.\n  Where paid 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.\n\nFortnightly, monthly or quarterly withholding amounts can now be calculated as follows:\n\n Fortnightly withholding amounts\n\nFortnightly withholding amounts are calculated by determining the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for FTB or tax offsets, then multiplying the result by 2. (See page 3 for FTB and tax offsets).\n\n Monthly withholding amounts\n\nMonthly withholding amounts are calculated by determining the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for FTB or tax offsets, then multiplying that amount by 13, dividing the product by 3 and rounding that result to the nearest dollar.\n\n Quarterly withholding amounts\n\nQuarterly withholding amounts are calculated by determining the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for FTB or tax offsets, then multiplying the result by 13.","sortOrder":13},{"sectionNumber":"Family tax benefit (FTB) and tax offsets","sectionType":"subdivision","heading":"Family tax benefit (FTB) and tax offsets","content":"#### Family tax benefit (FTB) and tax offsets\n\nThe withholding amount calculated using Scales 2, 5, 6 or 7 of the formulas is reduced as follows:\n\n Weekly\n\n1.9% of the total amount claimed at the FTB and tax offsets questions on the Withholding declaration (questions 8, 9 and 10 respectively), rounded to the nearest dollar.\n\n Fortnightly\n\n3.8% of the amount claimed at the FTB and tax offsets questions on the Withholding declaration, rounded to the nearest dollar.\n\n Monthly\n\n8.3% of the amount claimed at the FTB and tax offsets questions on the Withholding declaration, rounded to the nearest dollar.\n\n Quarterly\n\n25% of the amount claimed at the FTB and tax offsets questions on the Withholding declaration, rounded to the nearest dollar.","sortOrder":14},{"sectionNumber":"Medicare levy adjustment","sectionType":"subdivision","heading":"Medicare levy adjustment","content":"#### Medicare levy adjustment\n\nA Medicare levy adjustment is NOT to be allowed where withholding amounts have been calculated using Scales 1, 3, 4 or 5. The amount obtained using Scales 2, 6 or 7, after allowing for any FTB or tax offsets, is reduced by any amount of Medicare levy adjustment applicable.","sortOrder":15},{"sectionNumber":"Payees entitled to adjustments","sectionType":"subdivision","heading":"Payees entitled to adjustments","content":"#### Payees entitled to adjustments\n\nA payee who has lodged both a completed Withholding declaration and a Medicare levy variation declaration, and who has weekly earnings of:\n\n  $301 or more where Scale 2 is applied\n  $509 or more where Scale 6 is applied, or\n  $305 or more where Scale 7 is applied,\n\nis entitled to a Medicare levy adjustment if the payee answered:\n\n  Yes to question 10 on the Medicare levy variation declaration, and\n  Yes to question 9, and/or question 12 on the Medicare levy variation declaration.","sortOrder":16},{"sectionNumber":"How to calculate the Medicare levy adjus","sectionType":"subdivision","heading":"How to calculate the Medicare levy adjustment","content":"#### How to calculate the Medicare levy adjustment\n\nTo calculate the Medicare levy adjustment, your software program will need to be able to distinguish those payees who have answered Yes to question 9 and No to question 12 of the Medicare levy variation declaration from those payees who have answered Yes to question 12. Where payees have answered Yes to question 12, the software must be able to store the number of dependants shown against this question on the declaration.\n\nFor payees with weekly earnings of:\n\n  $325 or more where Scale 2 is applied\n  $551 or more where Scale 6 is applied, or\n  $330 or more where Scale 7 is applied,\n\nyou will need to calculate the weekly family threshold and shading out point, before calculating the weekly levy adjustment.\n\n![](image.005.png) Values used in the calculations below may be regarded as variables.","sortOrder":17},{"sectionNumber":"Weekly family threshold (WFT)","sectionType":"subdivision","heading":"Weekly family threshold (WFT)","content":"#### Weekly family threshold (WFT)\n\nScale 2 or Scale 6 applied\n\n  Where a payee has answered Yes to question 9 and No to question 12 on the Medicare levy variation declaration:\n\nWFT \\= $509.88 (26514 ÷ 52 rounded to the nearest cent).\n\n  Where a payee has answered Yes to question 12 on the Medicare levy variation declaration, you need to:\n (a) multiply the number of children shown at question 12 by 2464 and add the result to 26514\n (b) divide the result of (a) by 52, and\n (c) round the result of (b) to the nearest cent.\n\nExample: If the payee has shown 4 dependent children against question 12:\n\nWFT \\= ((2464 × 4) + 26514) ÷ 52\n\n\\= 699.4231\n\nor $699.42 (rounded to the nearest cent)\n\n \nScale 7 applied\n\n  Where a payee has answered Yes to question 9 and No to question 12 on the Medicare levy variation declaration:\n\nWFT \\= $516.04 (i.e. 26834 ÷ 52 rounded to the nearest cent).\n\n  Where a payee has answered Yes to question 12 on the Medicare levy variation declaration, you need to:\n (a) multiply the number of children shown at question 12 by 2464 and add the result to 26834\n (b) divide the result of (a) by 52 and\n (c) round the result of (b) to the nearest cent.\n\nExample: If the payee has shown 2 dependent children against question 12,\n\nWFT \\= ((2464 × 2) + 26834) ÷ 52\n\n\\= 610.8077\n\nor $610.81 (rounded to the nearest cent)","sortOrder":18},{"sectionNumber":"Shading out point (SOP)","sectionType":"subdivision","heading":"Shading out point (SOP)","content":"#### Shading out point (SOP)\n\nThe shading out point relative to a payee’s weekly family threshold is calculated as follows:\n\nMultiply WFT by 0.2 and divide the result by 0.1850. Ignore any cents in the result.\n\nExample: Payee has shown 6 dependent children against question 12 and Scale 2 is applied.\n\nWFT \\= ((2464 × 6) + 26514) ÷ 52\n\n\\= 794.1923\n\nor $794.19 (rounded to the nearest cent)\n\nSOP \\= (WFT × 0.2) ÷ 0.1850\n\n\\= ($794.19 × 0.2) ÷ 0.1850\n\n\\= 858.5838\n\nor $858 (ignoring cents)","sortOrder":19},{"sectionNumber":"Weekly levy adjustment (WLA)","sectionType":"subdivision","heading":"Weekly levy adjustment (WLA)","content":"#### Weekly levy adjustment (WLA)\n\nScale 2 applied\n\nWhere weekly earnings are $301 or more but less than SOP, the weekly levy adjustment is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (see Calculation of weekly earnings on page 2), in the following formulas:\n\n (1) If x is less than $325,\n\nWLA \\= (x – 301.20) × 0.2\n\n (2) If x is $325 or more but less than WFT,\n\nWLA \\= x × 0.0150\n\n (3) If x is equal to or greater than WFT and less than SOP,\n WLA \\= (WFT × 0.0150) – ((x – WFT) × 0.1850)\n\nScale 6 applied\n\nWhere weekly earnings are $509 or more but less than SOP, the weekly levy adjustment is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (see Calculation of weekly earnings on page 2), in the following formulas:\n\n (1) If x is less than $551,\n\nWLA \\= (x – 509.88) × 0.1\n\n (2) If x is $551 or more but less than WFT,\n\nWLA \\= x × 0.0075\n\n (3) If x is equal to or greater than WFT and less than SOP,\n WLA \\= (WFT × 0.0075) – ((x – WFT) × 0.0925)\n\nScale 7 applied\n\nWhere weekly earnings are $305 or more but less than SOP, the weekly levy adjustment is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (see Calculation of weekly earnings on page 2), in the following formulas:\n\n (1) If x is less than $330,\n\n(1) WLA \\= (x – 305.81) × 0.2\n\n(2) If x is $330 or more but less than WFT,\n\nWLA \\= x × 0.0150\n\n (3) If x is equal to or greater than WFT and less than SOP,\n\nWLA \\= (WFT × 0.0150) – ((x – WFT) × 0.1850)\n\nIn each case WLA should be rounded to the nearest dollar. Values terminating in exactly 50 cents should be rounded to the next higher dollar.\n\n \n\nExamples:\n\n 1. Payee’s weekly earnings are $315.33 and Scale 2 is applied.\n x \\= 315.99\n\nAs x is less than $325, WLA is calculated using formula (1):\n\nWLA \\= (315.99 – 301.20) × 0.2\n\n\\= 2.958 or $3.00 (rounded to the nearest dollar).\n\n 2. Payee’s weekly earnings are $556.47 and the number of children claimed at question 12 is 2. Scale 6 is applied.\n\nx \\= 556.99\n\nWFT \\= ((2464 × 2) + 26514) ÷ 52\n\n\\= 604.6538 or $604.65 (rounded to the nearest cent)\n\nAs x is greater than $551 and less than WFT, WLA is calculated using formula (2):\n\nWLA \\= 556.99 × 0.0075\n\n\\= 4.1774 or $4.00 (rounded to the nearest dollar).\n\n 3. Payee’s weekly earnings are $711.33 and the number of children claimed at question 12 is 4. Scale 7 is applied.\n\nx \\= 711.99\n\nWFT \\= ((2464 × 4) + 26834) ÷ 52\n\n\\= 705.5769 or $705.58 (rounded to the nearest cent).\n\nSOP \\= (705.58 × 0.2) ÷ 0.1850\n\n\\= 762.7892 or $762 (ignoring cents).\n\nAs x is greater than WFT and less than SOP, WLA is calculated using formula (3):\n\nWLA \\= (705.58 × 0.0150) – ((711.99 – 705.58) × 0.1850)\n\n\\= 9.3979 or $9.00 (rounded to the nearest dollar).","sortOrder":20},{"sectionNumber":"Fortnightly levy adjustment","sectionType":"subdivision","heading":"Fortnightly levy adjustment","content":"#### Fortnightly levy adjustment\n\nMultiply rounded weekly levy adjustment by 2.\n\nExample: Payee’s fortnightly earnings are $1132.42 and number of children claimed at question 12 is 1. Scale 2 is applied.\n\nEquivalent weekly earnings \\= $1132.42 ÷ 2\n\n\\= $566.21\n\nx \\= 566.99\n\nWFT \\= ((2464 × 1) + 26514) ÷ 52\n\n\\= 557.2692 or $557.27 (rounded to the nearest cent).\n\nSOP \\= (557.27 × 0.2) ÷ 0.1850\n\n\\= 602.4541 or $602 (ignoring cents).\n\nAs x is greater than WFT and less than SOP, formula (3) is used:\n\nWLA \\= (557.27 × 0.0150) – ((566.99 – 557.27) × 0.1850)\n\n\\= 6.5609 or $7.00 (rounded to the nearest dollar).\n\nThe fortnightly levy adjustment is therefore $14.00 ($7.00 x 2).","sortOrder":21},{"sectionNumber":"Monthly levy adjustment","sectionType":"subdivision","heading":"Monthly levy adjustment","content":"#### Monthly levy adjustment\n\nMultiply rounded weekly levy adjustment by 13 and divide the result by 3. The result should be rounded to the nearest dollar.\n\nExample: Payee’s monthly earnings are $1495.33 and has a spouse but no children. Scale 2 is applied.\n\nEquivalent weekly earnings \\= (1495.33 + 0.01) × 3 ÷ 13\n\n\\= $345.08\n\nx \\= 345.99\n\nWFT \\= $509.88\n\nAs x is greater than $325 and less than WFT, formula (2) applies:\n\nWLA \\= 345.99 × 0.0150 \\= 5.1899 or $5.00 (rounded to the nearest dollar).\n\nThe monthly adjustment is therefore $22.00 ($5.00 × 13 ÷ 3, rounded to the nearest dollar).","sortOrder":22},{"sectionNumber":"Quarterly levy adjustment","sectionType":"subdivision","heading":"Quarterly levy adjustment","content":"#### Quarterly levy adjustment\n\nMultiply rounded weekly levy adjustment by 13.","sortOrder":23},{"sectionNumber":"General examples","sectionType":"subdivision","heading":"General examples","content":"#### \nGeneral examples\n\n 1. Payee’s weekly earnings are $758.25. Payee has completed a Tax file number declaration claiming the tax-free threshold. The payee has also furnished a Medicare levy variation declaration with 5 children shown at question 12. Scale 2 is applied.\n\nx \\= 758.99\n\nWeekly withholding amount (y)\n\n\\= (a × x) – b\n\n\\= (0.3150 × 758.99) – 71.1038\n\n\\= 167.9781 or $168.00 (rounded to nearest dollar)\n\nLevy adjustment: Weekly earnings are greater than WFT ($746.81) and less than the SOP ($807) appropriate to payee with 5 children. Formula (3) applies.\n\n\\= (746.81 × 0.0150) – ((758.99 – 746.81) × 0.1850)\n\n\\= 11.2022 – 2.2533\n\n\\= 8.9489 or $9.00 (rounded to nearest dollar)\n\nNet weekly withholding amount\n\n$168.00 – $9.00 \\= $159.00\n\n 2. Payee’s fortnightly earnings are $830.40. Payee resides in Zone B, has provided a Tax file number declaration that claims the tax-free threshold and a Withholding declaration that claims FTB, zone and dependant tax offsets at the family tax benefit and tax offsets questions of $1645. The payee has also lodged a Medicare levy variation declaration claiming a FULL exemption from the Medicare levy. Scale 5 is applied.\n\nConvert to weekly equivalent\n\n\\= (830.40 ÷ 2)\n\n\\= 415.20 or $415 (ignore cents) x \\= 415.99\n\nWeekly withholding amount (y)\n\n\\= (a × x) – b\n\n\\= (0.3000 × 415.99) – 71.2050\n\n\\= 53.592 or $54.00 (rounded to nearest dollar)\n\nFortnightly withholding amount\n\n$54.00 × 2 \\= $108.00\n\nFTB/tax offsets claimed at the FTB and tax offsets questions on the Withholding declaration\n\n\\= 3.8% of $1645\n\n\\= 62.5100 or $63.00 (rounded to nearest dollar)\n\nNet fortnightly withholding amount\n\n$108.00 – $63.00 \\= $45.00\n\n 3. Payee’s monthly earnings are $3033.33. Payee has provided a Tax file number declaration claiming the tax-free threshold and claimed a total dependant tax offset of $1365 at the tax offsets question on the Withholding declaration. The payee has one child but is not eligible for a Medicare levy adjustment. The weekly equivalent of the payee’s earnings exceeds the Medicare levy shading out point of $609 appropriate to a payee with one child. The payee is not eligible to receive a leave loading, therefore Scale 7 is applied.\n\nConvert to weekly equivalent\n\n\\= ($3033.33 + 0.01) × 3 ÷ 13\n\n\\= 700.0015 or $700 (ignore cents)\n\nx \\= 700.99\n\nWeekly withholding amount (y)\n\n\\= (a × x) – b\n\n\\= (0.3150 × 700.99) – 73.0413\n\n\\= 147.7706 or $148.00 (rounded to nearest dollar)\n\nMonthly withholding amount\n\n\\= 148.00 × 13 ÷ 3 = 641.3333 or $641.00 (rounded to nearest dollar)\n\nDependant tax offset claimed\n\n\\= 8.3% of $1365\n\n\\= 113.295 or $113.00 (rounded to nearest dollar)\n\nNet monthly withholding amount\n\n$641.00 – $113.00 \\= $528.00\n\n![](image.006.png) Software programs written in accordance with this schedule should be tested for accuracy against the sample data provided on the following pages and used only where they produce the exact amounts shown in the tables. When the prescribed rates of withholding are varied, the above formulas will change.","sortOrder":24},{"sectionNumber":"Who should use this schedule?","sectionType":"subdivision","heading":"Who should use this schedule?","content":"#### Who should use this schedule?\n\nIf you develop your own payroll software package, this schedule will assist in calculating the amounts to be withheld from payments made to payees on a weekly, fortnightly, monthly or quarterly basis. Payments include:\n\n  salary, wages, allowances and leave loading paid to employees\n  director’s fees\n  salary and allowances paid to office holders (including Members of Parliament, statutory office holders, defence force members and police officers)\n  payments to labour hire workers\n  payments to religious practitioners\n  Commonwealth education or training payments, and\n  compensation, sickness or accident pay that is 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).\n\nThis schedule also includes such payments made to payees who are foreign residents. For more information see Foreign residents on this page.\n\nSome payees (shearers, fruit and vegetable harvesters, performing artists and those engaged on a daily basis) may be subject to a different rate of withholding. There are also special arrangements for the withholding rate for payments under voluntary agreements.","sortOrder":25},{"sectionNumber":"Tax file number (TFN) declarations","sectionType":"subdivision","heading":"Tax file number (TFN) declarations","content":"#### Tax file number (TFN) declarations\n\nThe amount to be withheld from payments made to payees is primarily determined by the answers given by the payee on a Tax file number declaration. A Tax file number declaration applies to payments made after the declaration is provided to the payer. A later declaration provided by a payee overrides an earlier declaration.\n\nIf a payee does not give the payer a Tax file number declaration within 14 days of commencing a payer/payee relationship, the payer must fill in a Tax file number declaration with all available details of the payee and send it to the Tax Office.\n\nAny Employment declarations and/or Annuity and superannuation pension declarations that were valid at 30 June 2000 will continue to be valid under PAYG.","sortOrder":26},{"sectionNumber":"No TFN provided","sectionType":"subdivision","heading":"No TFN provided","content":"#### No TFN provided\n\nIf a payment is made to a payee and the payee has not:\n\n  quoted their TFN\n  claimed an exemption from quoting, or\n  advised that they have applied for a TFN or have made an enquiry with the Tax Office\n\nuse scale 4 where the amount to withhold is 48.5% for residents and 47% for foreign residents, ignoring any cents.\n\nIf a payee states at question 1 of the Tax file number declaration that they have lodged a Tax File Number application or enquiry with the Tax Office, the payee has 28 days to give the payer their TFN. At the end of this time, if the payee has not provided their TFN, unless the Tax Office advises not to, the payer must withhold 48.5% (residents) or 47% (foreign residents) from the total amount of all payments made to the payee, ignoring any cents.\n\n![](image.007.png) Do not allow any FTB, tax offsets or Medicare levy adjustment. Do not add amounts for HECS, HELP or SFSS.","sortOrder":27},{"sectionNumber":"Withholding declarations","sectionType":"subdivision","heading":"Withholding declarations","content":"#### Withholding declarations\n\nA valid Tax file number declaration (or Employment declaration or Annuity and superannuation pension declaration) must be in place before a payee can authorise the payer to vary their rate of withholding by providing a Withholding declaration.\n\nA payee may use the Withholding declaration to advise their entitlement to the family tax benefit (FTB) or a tax offset, which they choose to claim through a reduced rate of withholding. Withholding declarations can also be used by payees to advise of changes to their situation since providing a valid Tax file number declaration, which may affect the amount to be withheld from their payments.\n\n \nChanges which may affect the payee’s withholding rate include:\n\n  becoming or ceasing to be an Australian resident for tax purposes\n  claiming or discontinuing a claim for the tax-free threshold\n  advising a HECS or HELP debt, or Financial Supplement debt, or changes to them\n  entitlement to a Senior Australians tax offset, and\n  upward variation to increase the rate or amount to be withheld.\n\nA Withholding declaration takes effect from the first payment the payer makes after the payee has provided the declaration. A later declaration provided by a payee overrides an earlier declaration.\n\nMedicare levy adjustment\n\nTo claim the Medicare levy adjustment available to some low income earners with dependants, a payee must lodge a Medicare levy variation declaration along with their Tax file number declaration.\n\n![](image.008.png) For instructions on how to calculate the Medicare levy adjustment, see page 3 of this schedule.\n\nSome payees may be liable for an increased rate of Medicare levy or the Medicare levy surcharge on reportable fringe benefits. These payees can lodge a Medicare levy variation declaration, requiring the payer to increase the amount to be withheld from payments made to them.\n\nAllowances\n\nGenerally, allowances are added to normal earnings and the amount to be withheld is calculated on the total amount of earnings and allowances.\n\n![](image.003.png) Refer to PAYG bulletin no 1 – Taxing of allowances for the 2000/01 and future income years.\n\nForeign residents\n\nForeign resident tax rates apply where a payee has answered No to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration. There are two ways to withhold from earnings for a foreign resident:\n\n  If the payee has provided a valid TFN, use Scale 3.\n  If the payee has not provided a valid TFN, use Scale 4.\n\nForeign resident payees cannot claim family tax benefit (FTB) or any tax offset. If a foreign resident payee has claimed FTB or any tax offsets on the Tax file number declaration, do not make any adjustment to the amount to be withheld.","sortOrder":28},{"sectionNumber":"Higher Education Contribution Scheme (HE","sectionType":"subdivision","heading":"Higher Education Contribution Scheme (HECS) and Higher Education Loan Programme (HELP)","content":"#### Higher Education Contribution Scheme (HECS) and Higher Education Loan Programme (HELP)\n\nIndividuals with an accumulated HECS or HELP debt may be required to have additional amounts withheld from payments made to them to cover their anticipated compulsory HECS or HELP repayment. A payee with a HECS or HELP debt will notify the payer of those details on their Tax file number declaration or Withholding declaration.\n\nUse the HELP weekly, fortnightly or monthly tax table to calculate the additional amounts to be withheld for HECS or HELP debts.\n\nPayees 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 HECS or HELP repayment for that year. The exemption from making a compulsory HECS or HELP repayment may be claimed on the Medicare levy variation declaration.\n\n![](image.006.png) On 1 January 2005 HECS was replaced by a new suite of loans known as HELP. HECS debts will continue to exist until 1 June 2006. From that date all HECS debts will be known as accumulated HELP debts.","sortOrder":29},{"sectionNumber":"Student Financial Supplement Scheme (SFS","sectionType":"subdivision","heading":"Student Financial Supplement Scheme (SFSS)","content":"#### Student Financial Supplement Scheme (SFSS)\n\nIndividuals with an accumulated Financial Supplement debt may be required to have additional amounts withheld from payments made to them to cover their anticipated compulsory SFSS repayment. A payee with a Financial Supplement debt will notify the payer of those details on their Tax file number declaration or Withholding declaration. Use the SFSS weekly, fortnightly or monthly tax table to calculate the additional amounts to be withheld.","sortOrder":30},{"sectionNumber":"Holiday pay, long service leave and elig","sectionType":"subdivision","heading":"Holiday pay, long service leave and eligible termination payments","content":"#### Holiday pay, long service leave and eligible termination payments\n\nPayees who continue working\n\nFor withholding purposes, holiday pay (including any leave loading) and long service leave payments must be included as part of normal earnings except when they are paid on termination of employment. Payment for leave loading is subject to withholding if it exceeds the current threshold of $320. Only that part of the payment which exceeds this threshold should be subject to withholding, unless the payee asks the payer to withhold from the full amount.\n\n![](image.009.png) Refer to PAYG withholding – calculation sheet – Index No 6209 – holiday and long service leave payments for continuing employment.\n\nPayees who cease working\n\nLump sum payments made when a payee ceases working are subject to a different rate of withholding. If a payee has unused annual leave, leave loading or long service leave, and they are resigning, see PAYG withholding – unused leave payments on termination of employment tax table (NAT 3351).\n\nIf they are leaving for other reasons the payments made may be eligible termination payments. Refer to PAYG withholding – eligible termination payment tax table (NAT 3349).\n\nDo not withhold any amount for HECS, HELP or SFSS debts from lump sum termination payments.","sortOrder":31},{"sectionNumber":"PAYG withholding tax tables","sectionType":"subdivision","heading":"PAYG withholding tax tables","content":"#### \nPAYG withholding tax tables\n\n  Weekly tax table incorporating Medicare levy with and without leave loading (NAT 1005)\n  Fortnightly tax table incorporating Medicare levy with and without leave loading (NAT 1006)\n  Monthly tax table incorporating Medicare levy with and without leave loading (NAT 1007)\n  Quarterly tax table incorporating Medicare levy with and without leave loading (NAT 3479)\n  Weekly tax table with no and half Medicare levy including Medicare levy adjustment (NAT 1008)\n  Medicare levy adjustment – weekly tax table (NAT 1010)\n  Medicare levy adjustment – fortnightly tax table (NAT 1011)\n  Medicare levy adjustment – monthly tax table (NAT 1012)\n  Special tax table for individuals seasonally employed in the horticultural industry, including statement of formulas (NAT 1013)\n  Special tax table for individuals employed in the shearing industry, including statement of formulas (NAT 1014)\n  Special tax table for actors, variety artists and other entertainers (NAT 1023)\n  Special daily rates tax table, incorporating Medicare levy including statement of formulas (NAT 1024)\n  HELP – weekly tax table (NAT 2173)\n  HELP – fortnightly tax table (NAT 2185)\n  HELP – monthly tax table (NAT 2186)\n  Statement of formulas for calculating HELP component (NAT 2335)\n  SFSS – weekly tax table (NAT 3306)\n  SFSS – fortnightly tax table (NAT 3307)\n  SFSS – monthly tax table (NAT 3308)\n  Statement of formulas for calculating SFSS component (NAT 3305)\n  Coefficients for calculating withholding amounts incorporating SFSS component and HECS or HELP component (NAT 3539)\n  Return to work payments tax table (NAT 3347)\n  Back payments including lump sum payments in arrears tax table (NAT 3348)\n  Eligible termination payments tax table (NAT 3349)\n  Superannuation pensions and annuities tax table (NAT 3350)\n  Unused leave payments on termination of employment tax table (NAT 3351)\n  Payments made under voluntary agreements tax table (NAT 3352)\n  Special tax table for Senior Australians (NAT 4466)\n  Special tax table for payments to individuals performing work or services in the JPDA – Timor Sea (NAT 7288)\n  Bonuses and similar payments tax table (NAT 7905)\n  Commission payments tax table (NAT 10146)\n\n![](image.010.png) Foreign resident tax tables are no longer produced.\n\nInformation on withholding for foreign residents is contained in the normal weekly, fortnightly and monthly tax tables.","sortOrder":33},{"sectionNumber":"Other useful publications","sectionType":"subdivision","heading":"Other useful publications","content":"#### Other useful publications\n\n  Tax file number declaration (NAT 3092)\n  Tax file number application or enquiry for an individual (NAT 1432)\n  Withholding declaration (NAT 3093)\n  Withholding declaration – upwards variation (NAT 5367)\n  Withholding declaration – short version for senior Australians (NAT 5072)\n  Medicare levy variation declaration (NAT 0929)\n  A voluntary agreement for PAYG withholding (NAT 2772)\n  PAYG Bulletin No. 1 – taxing of allowances (NAT 3252)\n  How to submit your PAYG withholding annual report electronically (NAT 3367)\n  PAYG withholding – calculation sheet – Index No 6209 – holiday and long service leave payments for continuing employment","sortOrder":34},{"sectionNumber":"Who should use this table?","sectionType":"subdivision","heading":"Who should use this table?","content":"#### Who should use this table?\n\nUse this table if you make the following payments to payees on a weekly basis:\n\n  salary, wages, allowances and leave loading paid to employees\n  director’s fees\n  salary and allowances paid to office holders (including Members of Parliament, statutory office holders, defence force members and police officers)\n  payments to labour hire workers\n  payments to religious practitioners\n  Commonwealth education or training payments, and\n  compensation, sickness or accident pay that is 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).\n\nAlso use this table for payments made to payees who are foreign residents. See page 2 for more information.\n\nSome payees (shearers, fruit and vegetable harvesters, performing artists and those engaged on a daily basis) may be subject to a different rate of withholding. There are also special arrangements for the withholding rate for payments under voluntary agreements.","sortOrder":35},{"sectionNumber":"Using formulas","sectionType":"subdivision","heading":"Using formulas","content":"#### Using formulas\n\nWithholding amounts shown in this table can be expressed in a mathematical form. If you have developed your own payroll software package you will need to use the PAYG statement of formulas for calculating amounts to be withheld (NAT 1004). A copy of this schedule is available from [www.ato.gov.au](http://www.ato.gov.au/)","sortOrder":36},{"sectionNumber":"Allowances","sectionType":"subdivision","heading":"Allowances","content":"#### Allowances\n\nGenerally, allowances are added to normal earnings and the amount to be withheld is calculated on the total amount of earnings and allowances.\n\n![](image.008.png) Refer to PAYG bulletin no 1 – Taxing of allowances for the 2000/01 and future income years.","sortOrder":42},{"sectionNumber":"Foreign residents","sectionType":"subdivision","heading":"Foreign residents","content":"#### Foreign residents\n\nForeign resident tax rates apply where a payee has answered No to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration. There are two ways to withhold from earnings for a foreign resident:\n\n  If the payee has not given you a valid TFN, you need to withhold 47 cents for each $1 of earnings, ignoring any cents.\n  If the payee has given you a valid TFN, withhold the amount calculated from Foreign resident tax rates below, rounding any cents to the nearest dollar.\n\nForeign resident payees cannot claim FTB or any tax offset. If a foreign resident payee has claimed FTB or any tax offsets on the Tax file number declaration, do not make any adjustment to the weekly amount to be withheld.","sortOrder":43},{"sectionNumber":"Foreign resident tax rates","sectionType":"subdivision","heading":"Foreign resident tax rates","content":"#### Foreign resident tax rates\n\n| Weekly earnings | Weekly rate |\n| --------------- | ------------------------------------------------------ |\n| $0-$415 | 29 cents for each dollar of earnings |\n| $416-$1,211 | $120 plus 30 cents for each $1 of earnings over $415 |\n| $1,212-$1,538 | $359 plus 42 cents for each $1 of earnings over $1,211 |\n| $1,539 and over | $497 plus 47 cents for each $1 of earnings over $1,538 |\n\nHECS, HELP and SFSS debts\n\nIndividuals with an accumulated Higher Education Contribution Scheme (HECS), Higher Education Loan Programme (HELP) or Student Financial Supplement Scheme (SFSS) debt may be required to have additional amounts withheld from payments you make to them. A payee with a HECS or HELP debt, or Financial Supplement debt, will notify you of those details on their Tax file number declaration or Withholding declaration.\n\nUse PAYG withholding – HELP weekly tax table (NAT 2173) to calculate additional withholding amounts for HECS or HELP debts. Use PAYG withholding – SFSS weekly tax table (NAT 3306) to calculate additional withholding amounts for Financial Supplement debts.\n\nDo not add amounts for HECS, HELP or SFSS when no tax file number has been provided.","sortOrder":44},{"sectionNumber":"Payees who continue working for you","sectionType":"section","heading":"Payees who continue working for you","content":"###### Payees who continue working for you\n\nFor withholding purposes 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. Payment for leave loading is subject to withholding if it exceeds the current threshold of $320. Only that part of the payment which exceeds this threshold should be subject to withholding, unless your payee asks you to withhold from the full amount.\n\n![](image.013.png) Refer to PAYG withholding – calculation sheet – Index No 6209 – holiday and long service leave payments for continuing employment.","sortOrder":46},{"sectionNumber":"Payees who cease working for you","sectionType":"section","heading":"Payees who cease working for you","content":"###### Payees who cease working for you\n\nLump sum payments made when a payee ceases working for you are subject to a different rate of withholding.\n\nIf a payee has unused annual leave, leave loading or long service leave, and they are resigning, see PAYG withholding \\- unused leave payments on termination of employment tax table (NAT 3351).\n\nIf they are leaving for other reasons the payments made may be eligible termination payments and you should refer to PAYG withholding – eligible termination payments tax table (NAT 3349).\n\nDo not withhold any amount for HECS, HELP or Financial Supplement debts from lump sum termination payments.","sortOrder":47},{"sectionNumber":"How to work out withholding amounts","sectionType":"subdivision","heading":"How to work out withholding amounts","content":"#### How to work out withholding amounts\n\n 1. Add any allowances and irregular payments that are to be included in this week’s pay to the normal weekly earnings, ignoring any cents.\n 2. Find the payee’s total weekly earnings in column 1.\n 3. Use the appropriate column to find the correct amount to be withheld. If the payee is:\n  claiming the tax-free threshold and is entitled to a leave loading, use column 2\n  claiming the tax-free threshold and is not entitled to a leave loading, use column 3, or\n  not claiming the tax-free threshold, whether or not entitled to a leave loading, use column 4.\n 4. Payees may anticipate their end-of-year entitlement to the FTB and/or a tax offset as a reduced rate of withholding by providing a Withholding declaration. Use the Ready reckoner for family tax benefit and tax offsets shown below to convert the payee’s estimate of their full-year entitlement into a weekly value. Then subtract this value from the withholding amount found in step 3.\n 5. If the payee is entitled to make an adjustment for the Medicare levy, subtract the value of the adjustment, determined from the PAYG withholding – Medicare levy adjustment weekly tax table (NAT 1010) from the amount found in step 4.\n If the payee has advised you of a HECS, HELP or Financial Supplement debt, add the amount\n\ndetermined from the PAYG withholding – HELP weekly tax table (NAT 2173) or PAYG withholding – SFSS weekly tax table (NAT 3306) to the amount you calculated in step 5.\n\n![](image.015.png) If you use column 4, or foreign resident tax rates, or no TFN has been provided, do not allow any FTB, tax offsets or Medicare levy adjustment.\n\n \n\n| ExampleA payee has weekly earnings of $563.60.To work out the correct amount to withhold, use column 1 and find $563.If the payee is: claiming the tax-free threshold and is entitled to a leave loading, use column 2 to find the correct amount to withhold – $107. claiming the tax-free threshold and is not entitled to a leave loading, use column 3 to find the correct amount to withhold – $105. not claiming the tax-free threshold, whether or not entitled to a leave loading, use column 4 to find the correct amount to withhold – $165. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n#### Resident income tax rates from 1 July 2005\n\n#### (not including Medicare levy)\n\n| Taxable income range$ | Tax rate% |\n| --------------------- | --------- |\n| 0 to 6,000 | 0 |\n| 6,001 to 21,600 | 17 |\n| 21,601 to 63,000 | 30 |\n| 63,001 to 80,000 | 42 |\n| Greater than 80,000 | 47 |\n\nPAYG withholding publications\n\nAll PAYG withholding tax tables and other PAYG publications can be accessed quickly and easily from [www.ato.gov.au](http://www.ato.gov.au/)\n\nCopies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration and the Withholding declaration.","sortOrder":49},{"sectionNumber":"Resident income tax rates from 1 July 20","sectionType":"subdivision","heading":"Resident income tax rates from 1 July 2005","content":"#### Resident income tax rates from 1 July 2005\n\n#### (not including Medicare levy)","sortOrder":50},{"sectionNumber":"(not including Medicare levy)","sectionType":"subdivision","heading":"(not including Medicare levy)","content":"#### Resident income tax rates from 1 July 2005\n\n#### (not including Medicare levy)","sortOrder":51},{"sectionNumber":"Medicare levy variations","sectionType":"subdivision","heading":"Medicare levy variations","content":"#### Medicare levy variations\n\nTo claim the Medicare levy adjustment available to some low income earners with dependants, a payee must lodge a Medicare levy variation declaration along with their Tax file number declaration.\n\n![](image.012.png) For instructions on how to work out the Medicare levy adjustment, use the PAYG withholding – Medicare levy adjustment monthly tax table (NAT 1012).\n\nSome payees may be liable for an increased rate of Medicare levy or the Medicare levy surcharge on reportable fringe benefits. These payees can lodge a Medicare levy variation declaration, requiring you to increase the amount to be withheld from payments you make to them.","sortOrder":70},{"sectionNumber":"Full exemption from Medicare levy","sectionType":"section","heading":"Full exemption from Medicare levy","content":"###### Full exemption from Medicare levy\n\nTo obtain a full exemption from the Medicare levy, the payee must have completed Section A of the Medicare levy variation declaration and answered Yes to both question 5, ‘Do you qualify for a Medicare levy exemption?’, and question 6, ‘Do you want to claim a full exemption from the Medicare levy?’.","sortOrder":86},{"sectionNumber":"Half Medicare levy rates","sectionType":"section","heading":"Half Medicare levy rates","content":"###### Half Medicare levy rates\n\nThe half Medicare levy rates apply where the payee has completed Section A of the Medicare levy variation declaration and has answered Yes to question 7, ‘Do you want to claim a half levy exemption from the Medicare levy?’.","sortOrder":87},{"sectionNumber":"Medicare levy adjustments","sectionType":"section","heading":"Medicare levy adjustments","content":"###### Medicare levy adjustments\n\nTo claim the Medicare levy adjustment available to some low income earners with dependants, a payee must lodge a Medicare levy variation declaration along with their Tax file number declaration. A payee may be entitled to a Medicare levy adjustment if their weekly earnings are $509 or more and they have answered Yes to questions 7, 10 and 12 on the Medicare levy variation declaration. For instructions on working out the Medicare levy adjustment (half-levy), refer to page 7 of this table.","sortOrder":88},{"sectionNumber":"HECS, HELP and SFSS debts","sectionType":"section","heading":"HECS, HELP and SFSS debts","content":"###### HECS, HELP and SFSS debts\n\nIndividuals with an accumulated Higher Education Contribution Scheme (HECS), Higher Education Loan Programme (HELP) or Student Financial Supplement Scheme (SFSS) debt may be required to have additional amounts withheld from payments you make to them. A payee with a HECS or HELP debt, or Financial Supplement debt will notify you of those details on their Tax file number declaration or Withholding declaration.\n\nUse the HELP tax tables to calculate additional withholding amounts for HECS or HELP debts. Use the SFSS tax tables to calculate additional withholding amounts for Financial Supplement debts.","sortOrder":90},{"sectionNumber":"Examples","sectionType":"subdivision","heading":"Examples","content":"#### Examples\n\nFull exemption from the Medicare levy\n\nThe payee has weekly earnings of $518.40. Round the earnings down to the nearest dollar. Find $518 in column 1 and read off the corresponding amount to be withheld of $84.00 from column 2.\n\nIf the payee claims FTB or a tax offset of $500 on the Withholding declaration, find this amount in the Ready reckoner for family tax benefit and tax offsets. Read off the corresponding value of FTB or tax offset of $10.00. Subtract this from $84.00 and the result of $74.00 needs to be withheld.\n\nHalf Medicare levy exemption\n\nThe payee has weekly earnings of $430.90. Round the earnings down to the nearest dollar. Find $430 in column 1 and read off the corresponding amount to be withheld of $58.00 from column 3.\n\nIf the payee claims FTB or a tax offset of $1,000 on the Withholding declaration, find this amount in the Ready reckoner for family tax benefit and tax offsets. Read off the corresponding value of FTB or tax offset of $19.00. Subtract this from $58.00 and the result of $39.00 needs to be withheld.","sortOrder":94},{"sectionNumber":"PAYG withholding publications","sectionType":"section","heading":"PAYG withholding publications","content":"###### PAYG withholding publications\n\nAll PAYG withholding tax tables and other PAYG publications can be accessed quickly and easily from [www.ato.gov.au](http://www.ato.gov.au/)\n\nCopies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration and the Withholding declaration.","sortOrder":95},{"sectionNumber":"Payee claiming spouse and/or 1 to 5 depe","sectionType":"section","heading":"Payee claiming spouse and/or 1 to 5 dependent children","content":"###### Payee claiming spouse and/or 1 to 5 dependent children\n\nRound the weekly earnings down to the nearest dollar. Find the payee’s weekly earnings, or the closest lower amount, in the ‘Weekly earnings’ column of the table, and read off the corresponding amount of Medicare levy adjustment from the ‘Spouse only OR 1-5 children’ column at the bottom of page 2.\n\n| ExampleThe payee has weekly earnings of $318.70 and is claiming 4 dependent children on the Medicare levy variation declaration.Find $318 in the ‘Weekly earnings’ column and read off the corresponding Medicare levy adjustment of $4.00 from the ‘Spouse only OR 1-5 children’ column. |\n| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":103},{"sectionNumber":"Payee with more than 5 dependent childre","sectionType":"section","heading":"Payee with more than 5 dependent children","content":"###### Payee with more than 5 dependent children\n\n 1. Weekly earnings less than $747.\n\nRound the weekly earnings down to the nearest dollar. Find the payee’s earnings in the ‘Weekly earnings’ column and read off the corresponding amount of Medicare levy adjustment from the appropriate 5 children column.\n\nNote: Where weekly earnings are less than $747 and 5 or more dependent children are claimed, the maximum Medicare levy adjustment that can be claimed is the amount equal to the amount of Medicare levy actually included in the amount to be withheld on the payee’s weekly earnings.\n\n| ExampleThe payee has weekly earnings of $410.65 and is claiming 6 dependent children. Find $410 in the ‘Weekly earnings’ column and read off the corresponding Medicare levy adjustment of $6.00 from the ‘Spouse only OR 1-5 children’ column. |\n| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":104},{"sectionNumber":"2. Weekly earnings of $747 or more but l","sectionType":"section","heading":"2. Weekly earnings of $747 or more but less than the column B amount that corresponds to the number of dependent children claimed.","content":"###### 2. Weekly earnings of $747 or more but less than the column B amount that corresponds to the number of dependent children claimed.\n\nRound the weekly earnings down to the nearest dollar and add 99 cents. Take 1.5% of the payee’s weekly earnings and round to the nearest dollar.\n\n| ExampleThe payee has weekly earnings of $756.45 and is claiming 7 dependent children. Take 1.5% of $756.99 (weekly earnings of $756, ignoring any cents, plus 99 cents). The amount of the Medicare levy adjustment is $11.00, rounded to the nearest dollar. |\n| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":105},{"sectionNumber":"3. Weekly earnings of $747 or more and g","sectionType":"section","heading":"3. Weekly earnings of $747 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.","content":"###### 3. Weekly earnings of $747 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.\n\nTake 1.5% of the relevant column B amount and round the result to the nearest cent. Reduce this amount by 18.5% of the difference between the weekly earnings (in whole dollars plus 99 cents) and the column B amount. Round the result to the nearest dollar.\n\n| ExampleThe payee has weekly earnings of $890.48 and is claiming 8 dependent children. Take 1.5% of the column B amount for 8 children of $888.96, which equals $13.33. Reduce this amount by 18.5% of $2.03 (that is, $890.99 less $888.96), which equals $0.38. The resulting Medicare levy adjustment is $13.00 (that is, $13.33 less $0.38), rounded to the nearest dollar. |\n| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n\n \nPAYG withholding publications\n\nAll PAYG withholding tax tables and other PAYG publications can be accessed quickly and easily from [www.ato.gov.au](http://www.ato.gov.au/)\n\nCopies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration and the Withholding declaration.","sortOrder":106},{"sectionNumber":"2. Fortnightly earnings of $1,494 or mor","sectionType":"section","heading":"2. Fortnightly earnings of $1,494 or more but less than the column B amount that corresponds to the number of dependent children claimed.","content":"###### 2. Fortnightly earnings of $1,494 or more but less than the column B amount that corresponds to the number of dependent children claimed.\n\nTake 1.5% of the payee’s fortnightly earnings (expressed as the next higher whole dollar amount) and round to the nearest dollar.\n\n| ExampleThe payee has fortnightly earnings of $1,563.90 and is claiming 7 dependent children. Take 1.5% of $1,564 (the next higher whole dollar amount). The amount of the Medicare levy adjustment is $23.00, rounded to the nearest dollar. |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":113},{"sectionNumber":"3. Fortnightly earnings of $1,494 or mor","sectionType":"section","heading":"3. Fortnightly earnings of $1,494 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.","content":"###### 3. Fortnightly earnings of $1,494 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.\n\nTake 1.5% of the relevant column B amount and round the result to the nearest cent. Reduce this amount by 18.5% of the difference between the fortnightly earnings (expressed as the next higher whole dollar amount) and the column B amount. Round the result to the nearest dollar.\n\n| ExampleThe payee has fortnightly earnings of $1,802.92 and is claiming 8 dependent children. Take 1.5% of the column B amount for 8 children of $1,777.92, which equals $26.67. Reduce this amount by 18.5% of $25.08 (that is, $1,803 less $1,777.92), which equals $4.64. The resulting Medicare levy adjustment is $22.00 (that is, $26.67 less $4.64), rounded to the nearest dollar. |\n| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":114},{"sectionNumber":"2. Monthly earnings of $3,236 or more bu","sectionType":"section","heading":"2. Monthly earnings of $3,236 or more but less than the column B amount that corresponds to the number of dependent children claimed.","content":"###### 2. Monthly earnings of $3,236 or more but less than the column B amount that corresponds to the number of dependent children claimed.\n\nTake 1.5% of the payee’s monthly earnings (expressed as the next higher whole dollar that is a multiple of $4) and round to the nearest dollar.\n\n| ExampleThe payee has monthly earnings of $3,281.60 and is claiming 7 dependent children. Take 1.5% of $3,284 (that is, $3,281.60 expressed as the next higher whole dollar that is a multiple of $4). The amount of the Medicare levy adjustment is $49.00, rounded to the nearest dollar. |\n| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |","sortOrder":122},{"sectionNumber":"3. Monthly earnings of $3,236 or more an","sectionType":"section","heading":"3. Monthly earnings of $3,236 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.","content":"###### 3. Monthly earnings of $3,236 or more and greater than the column B amount but less than the column A amount that corresponds to the number of dependent children claimed.\n\nTake 1.5% of the relevant column B amount and round the result to the nearest cent. Reduce this amount by 18.5% of the difference between the monthly earnings (expressed as the next higher whole dollar that is a multiple of $4) and the column B amount. Round the result to the nearest dollar.\n\n| ExampleThe payee has monthly earnings of $3,950.36 and is claiming 8 dependent children. Take 1.5% of the column B amount for 8 children of $3,852.17, which equals $57.78. Reduce this amount by 18.5% of $99.83 (that is, $3,952 less $3,852.17), which equals $18.47. The resulting Medicare levy adjustment is $39.00 (that is, $57.78 less $18.47), rounded to the nearest dollar. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":123},{"sectionNumber":"has not:","sectionType":"section","heading":"has not:","content":"###### has not:\n\n  quoted their TFN\n  claimed an exemption from quoting, or\n  advised that they have applied for a TFN or have made an enquiry with the Tax Office\n\nyou must withhold an amount equal to 48.5% of the payment, ignoring any cents.\n\nIf a payee states at question 1 of the Tax file number declaration that they have lodged a Tax file number application or enquiry with the Tax Office, the payee has 28 days to give you their TFN.\n\n \nAt the end of this time, if the payee has not given you their TFN, unless the Tax Office tells you not to, you must withhold 48.5% from the total amount of all payments made to the payee, ignoring any cents.\n\n![](image.026.png) Do not allow any family tax benefit (FTB), tax offsets or Medicare levy adjustment. Do not add amounts for HECS, HELP or SFSS.","sortOrder":128},{"sectionNumber":"Variations of amounts to be withheld","sectionType":"subdivision","heading":"Variations of amounts to be withheld","content":"#### Variations of amounts to be withheld\n\nIf a resident payee can demonstrate that the amount withheld in accordance with this table will result in more tax being paid during the year than will be needed to meet their final tax liability, they may apply to the Tax Office for a variation to a lower rate.\n\nTo obtain a variation application, you can:\n\n  visit our web site at [www.ato.gov.au](http://www.ato.gov.au/)\n  phone 1300 360 221, or\n  visit a Tax Office shopfront.","sortOrder":131},{"sectionNumber":"Software programs","sectionType":"subdivision","heading":"Software programs","content":"#### Software programs\n\nSoftware programs written in accordance with this statement should be tested for accuracy against this table and used only where they produce the exact amounts shown in the table.","sortOrder":134},{"sectionNumber":"Foreign resident payees","sectionType":"subdivision","heading":"Foreign resident payees","content":"#### Foreign resident payees\n\nForeign resident tax rates apply where a payee has answered No to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration.\n\nFor foreign resident payees (for example, overseas visitors on working holidays) an amount should be withheld at a rate of 29% where a tax file number is provided, and at a rate of 47% for those who have not provided a tax file number.\n\nForeign resident payees cannot claim family tax benefit (FTB) or any tax offset. If a foreign resident payee has claimed FTB or any tax offsets on the Tax file number declaration, do not make any adjustment to the daily amount to be withheld.","sortOrder":139},{"sectionNumber":"What is HELP?","sectionType":"section","heading":"What is HELP?","content":"##### What is HELP?\n\nOn 1 January 2005, the Higher Education Contribution Scheme (HECS) was replaced by a new suite of loans known as the Higher Education Loan Programme (HELP). HELP offers Commonwealth loans to assist students pay for the cost of their higher education.","sortOrder":143},{"sectionNumber":"What happens to HECS debts?","sectionType":"section","heading":"What happens to HECS debts?","content":"##### What happens to HECS debts?\n\nHECS debts will continue to exist until 1 June 2006. From that date, all HECS debts will be known as accumulated HELP debts.","sortOrder":144},{"sectionNumber":"Formulas for calculating the HECS or HEL","sectionType":"section","heading":"Formulas for calculating the HECS or HELP component","content":"##### Formulas for calculating the HECS or HELP component\n\nThe formulas comprise linear equations of the form y = ax, where y is the weekly HECS or HELP component expressed in dollars, and x is the number of whole dollars in the weekly earnings plus 99 cents. The value of the coefficient a for the formulas is shown in the table below.\n\n| Weekly earnings — x$ | Component rate — a% |\n| -------------------- | ------------------- |\n| 0 – 689.99 | 0 |\n| 690 – 768.99 | 4.0 |\n| 769 – 848.99 | 4.5 |\n| 849 – 893.99 | 5.0 |\n| 894 – 960.99 | 5.5 |\n| 961 – 1,040.99 | 6.0 |\n| 1,041 – 1,095.99 | 6.5 |\n| 1,096 – 1,206.99 | 7.0 |\n| 1,207 – 1,286.99 | 7.5 |\n| 1,287 & over | 8.0 |\n\nThe rates above apply to the total weekly earnings of the payee.\n\n \nRounding of components\n\nThe components have been rounded to the nearest dollar. Values terminating in exactly 50 cents are rounded to the next higher dollar. The rounding has been done directly, that is, a preliminary rounding to the nearest cent should not be made.\n\nEXAMPLE\n\nPayee’s weekly earnings are $708.62.\n\nHECS or HELP component \\= $28.00 ($708.99 x 4%, rounded to the nearest dollar).","sortOrder":147},{"sectionNumber":"Accounting software","sectionType":"section","heading":"Accounting software","content":"##### Accounting software\n\nSoftware programs written in accordance with this statement should be tested for accuracy against this table and used only where they produce the exact amounts shown in the table.","sortOrder":148},{"sectionNumber":"More information","sectionType":"section","heading":"More information","content":"##### ![](image.030.png) More information\n\nFor more information about PAYG withholding, or HECS or HELP rates, you can:\n\n  visit our website at [www.ato.gov.au](http://www.ato.gov.au/)\n  obtain a fax by phoning 13 28 60, or\n  visit one of our shopfronts.\n\n| How to find the HECS or HELP component in the table belowFind the payee’s weekly earnings – or the closest lower amount– in the Weekly earnings column of the table and read off the corresponding amount of HECS or HELP component from the Weekly component column.EXAMPLEThe payee’s weekly earnings are $876.54. Find $876 in the Weekly earnings column and read off the corresponding HECS or HELP component of $44.00 from the Weekly component column. |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":149},{"sectionNumber":"Calculating the fortnightly HECS or HELP","sectionType":"section","heading":"Calculating the fortnightly HECS or HELP component","content":"##### \nCalculating the fortnightly HECS or HELP component\n\nCalculate the weekly equivalent of fortnightly earnings by dividing the sum of the fortnightly earnings subject to withholding by 2. Ignore any cents in the result and add 99 cents. Determine the rounded weekly HECS or HELP component applicable to the weekly equivalent of earnings, and then multiply the result by 2.","sortOrder":155},{"sectionNumber":"Rounding of components","sectionType":"section","heading":"Rounding of components","content":"##### Rounding of components\n\nThe components have been rounded to the nearest dollar before converting to fortnightly components. Values terminating in exactly 50 cents are rounded to the next higher dollar. The rounding has been done directly, that is, a preliminary rounding to the nearest cent should not be made.\n\nEXAMPLE\n\nPayee’s fortnightly earnings are $1,592.17.\n\nWeekly equivalent of $1,592.17 \\= $796.99 ($1,592.17 ÷ 2, ignoring cents and adding 99 cents).\n\nWeekly HECS or HELP component \\= $36.00 ($796.99 x 4.5%, rounded to the nearest dollar).\n\nFortnightly HECS or HELP component \\= $72.00 ($36.00 x 2).","sortOrder":156},{"sectionNumber":"When should the HELP component be calcul","sectionType":"section","heading":"When should the HELP component be calculated?","content":"##### When should the HELP component be calculated?\n\nYou will need to calculate the HELP component when a payee has provided you with a Tax file number declaration or Witholding declaration and has:\n\n  answered Yes to the question ‘Do you have an accumulated HECS or HELP debt?’\n  not claimed a HECS or HELP exemption on a Medicare levy variation declaration, and\n  earnings of:\n – $690 or more if paid weekly\n – $1,380 or more if paid fortnightly\n – $2,990 or more if paid monthly, or\n – $8,970 or more if paid quarterly\n\nThe HECS or HELP component is to be withheld from all earnings, including taxable allowances, bonuses and commissions. Do not withhold any amount for HECS or HELP from lump sum termination payments.","sortOrder":169},{"sectionNumber":"Formulas for calculating the HECS or","sectionType":"section","heading":"Formulas for calculating the HECS or","content":"##### Formulas for calculating the HECS or\n\nHELP component\n\nThe formulas comprise linear equations of the form y = ax, where y is the weekly HECS or HELP component expressed in dollars, and x is the number of whole dollars in the weekly earnings – or weekly equivalent of earnings – plus 99 cents. The value of the coefficient a for the formulas is shown in the table below.\n\n| Weekly earnings — x$ | Component rate — a% |\n| -------------------- | ------------------- |\n| 0 – 689.99 | 0 |\n| 690 – 768.99 | 4.0 |\n| 769 – 848.99 | 4.5 |\n| 849 – 893.99 | 5.0 |\n| 894 – 960.99 | 5.5 |\n| 961 – 1,040.99 | 6.0 |\n| 1,041 – 1,095.99 | 6.5 |\n| 1,096 – 1,206.99 | 7.0 |\n| 1,207 – 1,286.99 | 7.5 |\n| 1,287 & over | 8.0 |\n\nThe rates above apply to the total earnings of the payee.","sortOrder":171},{"sectionNumber":"Calculating the fortnightly, monthly or ","sectionType":"section","heading":"Calculating the fortnightly, monthly or quarterly HECS or HELP component","content":"##### \nCalculating the fortnightly, monthly or quarterly HECS or HELP component\n\n First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings where paid:\n\n  fortnightly, divide the sum of the fortnightly earnings by 2, ignore cents in the result and add 99 cents\n  monthly, take the sum of the monthly earnings – if this amount ends in 33 cents, add 1 cent – and multiply this amount by 3/13, ignore cents in the result and add 99 cents, or\n  quarterly, divide the sum of the quarterly earnings by 13, ignore cents in the result and add 99 cents.\n\nFortnightly, monthly or quarterly HECS or HELP components should now be calculated. You calculate:\n\n  fortnightly components – by determining the rounded weekly HECS or HELP component applicable to the weekly equivalent of earnings, and multiplying this amount by 2\n  monthly components – by determining the rounded weekly HECS or HELP component applicable to the weekly equivalent of earnings, and multiplying this amount by 13/3 and rounding the result to the nearest dollar, or\n  quarterly components – by determining the rounded weekly HECS or HELP component applicable to the weekly equivalent of earnings and multiplying this amount by 13.","sortOrder":172},{"sectionNumber":"Fortnightly earnings","sectionType":"section","heading":"Fortnightly earnings","content":"###### Fortnightly earnings","sortOrder":182},{"sectionNumber":"Additional withholding","sectionType":"section","heading":"Additional withholding","content":"###### Additional withholding","sortOrder":183},{"sectionNumber":"General example","sectionType":"subdivision","heading":"General example","content":"#### \nGeneral example\n\n Payee’s fortnightly earnings are $1,602.78. The payee has provided a Tax file number declaration claiming the tax-free threshold and total dependant tax offsets of $1,227 at the family tax benefit and tax offsets questions on a Withholding declaration. The payee has lodged a Medicare levy variation declaration with 5 children shown at question 12. Scale 12 is applied.\n\nEquivalent weekly earnings \\= $1602.78 ÷ 2\n\n\\= $801 (ignore cents)\n\nx \\= 801.99\n\nWeekly withholding amount (y)\n\n\\= (a × x) – b\n\n\\= (0.3075 × 801.99) – 73.0413\n\n\\= $173.5706 or $174.00 (rounded to nearest dollar)\n\nFortnightly withholding amount\n\n$174.00 x 2 \\= $348.00\n\nTax offsets claimed at the family tax benefit and tax offsets questions on the Withholding declaration\n\n\\= 3.8% of $1227\n\n\\= 46.626 or $47.00 (rounded to nearest dollar)\n\nLevy adjustment: Weekly earnings are greater than WFT ($752.96) and less than the SOP ($814) appropriate to payee with 5 children. Formula 3 applies.\n\n\\= (752.96 × 0.0075) – ((801.99 – 752.96) × 0.0925)\n\n\\= 5.6472 – 4.5353\n\n\\= 1.112 or $1.00 (rounded to the nearest dollar)\n\nThe fortnightly levy adjustment is therefore $2.00 ($1 × 2) Therefore, net fortnightly withholding amount\n\n$348.00 – $47.00 – $2.00 \\= $299.00","sortOrder":193},{"sectionNumber":"PAYG withholding for SFSS","sectionType":"subdivision","heading":"PAYG withholding for SFSS","content":"#### PAYG withholding for SFSS\n\nThe Student Financial Supplement Scheme (SFSS) was a voluntary loan scheme for tertiary students to help cover their expenses while they studied. Five years after the loan is taken out the Tax Office becomes responsible for collecting the outstanding loan, and the loan becomes an accumulated Financial Supplement debt. Compulsory repayments of accumulated Financial Supplement debts are made through the tax system when the payee’s taxable income is above the minimum threshold.\n\nPayees with an accumulated Financial Supplement debt need to have additional amounts withheld from their payments under the PAYG withholding system. The additional amounts are to cover the payee’s anticipated compulsory repayment that will be raised in their income tax notice of assessment.","sortOrder":194},{"sectionNumber":"When should the SFSS component be calcul","sectionType":"subdivision","heading":"When should the SFSS component be calculated?","content":"#### When should the SFSS component be calculated?\n\nYou will need to calculate the SFSS component when a payee has provided you with a Tax file number declaration or Witholding declaration and has:\n\n  answered Yes to the question ‘Do you have an accumulated Financial Supplement debt?’, and\n  earnings of:\n – $749 or more if paid weekly\n – $1,498 or more if paid fortnightly\n – $3,245.67 or more if paid monthly, or\n – $9,737 or more if paid quarterly.\n\nThe SFSS component is to be withheld from all earnings, including taxable allowances, bonuses and commissions. Do not withhold any amount for SFSS from lump sum termination payments.","sortOrder":195},{"sectionNumber":"Formulas for calculating the SFSS compon","sectionType":"subdivision","heading":"Formulas for calculating the SFSS component","content":"#### Formulas for calculating the SFSS component\n\nThe formulas comprise linear equations of the form y = ax, where y is the weekly SFSS component expressed in dollars, and x is the number of whole dollars in the weekly earnings – or weekly equivalent of earnings – plus 99 cents. The value of the coefficient a for the formulas is shown in the table below.\n\n| Weekly earnings — x$ | Component rate — a% |\n| -------------------- | ------------------- |\n| 0 – 748.99 | 0 |\n| 749 – 850.99 | 2.0 |\n| 851 – 1,193.99 | 3.0 |\n| 1,194 & over | 4.0 |\n\nThe rates above apply to the total earnings of the payee.","sortOrder":197},{"sectionNumber":"Calculating the fortnightly SFSS compone","sectionType":"subdivision","heading":"Calculating the fortnightly SFSS component","content":"#### \nCalculating the fortnightly SFSS component\n\nCalculate the weekly equivalent of fortnightly earnings by dividing the sum of the fortnightly earnings subject to withholding by 2. Ignore any cents in the result and add 99 cents. Determine the rounded weekly SFSS component applicable to the weekly equivalent of earnings, and then multiply the result by 2.","sortOrder":208},{"sectionNumber":"Calculating the monthly SFSS component","sectionType":"subdivision","heading":"Calculating the monthly SFSS component","content":"#### Calculating the monthly SFSS component\n\nCalculate the weekly equivalent of monthly earnings by obtaining the sum of the monthly earnings subject to withholding – if the result is an amount ending in 33 cents, add 1 cent – and\n\n \nmultiply this amount by 3/13. Ignore any cents in the result and add 99 cents. Determine the rounded weekly SFSS component applicable to the weekly equivalent of earnings, and then multiply the result by 13/3 and round to the nearest dollar.","sortOrder":215},{"sectionNumber":"Taxable income range","sectionType":"section","heading":"Taxable income range","content":"###### Taxable income range","sortOrder":235},{"sectionNumber":"Tax rate","sectionType":"section","heading":"Tax rate","content":"###### Tax rate","sortOrder":236},{"sectionNumber":"Formulas for calculating the SFSS and HE","sectionType":"subdivision","heading":"Formulas for calculating the SFSS and HECS or HELP components","content":"#### Formulas for calculating the SFSS and HECS or HELP components\n\nStatements of formulas for separately calculating the SFSS and HECS or HELP components together with examples and sample data can be found in:\n\n  Statement of Formulas for calculating Student Financial Supplement Scheme (SFSS) component (NAT 3305), and\n  Statement of Formulas for calculating Higher Education Loan Programme (HELP) component (NAT 2335).","sortOrder":241},{"sectionNumber":"When should the HECS or HELP component b","sectionType":"subdivision","heading":"When should the HECS or HELP component be calculated?","content":"#### When should the HECS or HELP component be calculated?\n\n Use this table if you make payments to payees who have provided you with a Tax file number declaration or Withholding declaration and have:\n\n  answered Yes to the question ‘Do you have an accumulated HECS or HELP debt?’\n  not claimed a HECS or HELP exemption on a Medicare levy variation declaration, and\n  earnings of:\n – $690 or more if paid weekly\n – $1,380 or more if paid fortnightly\n – $2,990 or more if paid monthly, or\n – $8,970 or more if paid quarterly.","sortOrder":242}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2463},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The legislation maintains its intended scope as a comprehensive annual update to PAYG withholding schedules for the 2005-06 financial year, incorporating the 2004 Budget measures including the transition from HECS to HELP and updated Medicare levy thresholds."},"complexity_factors":["22 separate withholding schedules covering different payment frequencies (weekly, fortnightly, monthly, quarterly) and circumstances","Mathematical formulas requiring linear equation calculations (y = ax – b) with specific coefficient tables for software implementation","Multiple conditional 'Scales' (1-7, 11-12) based on tax residency status, tax-free threshold claims, and Medicare levy exemptions","Complex Medicare levy 'shading' calculations involving weekly family thresholds, shading-out points, and variable multipliers for payees with dependants","Separate calculation methods for multiple debt repayment schemes (HECS/HELP and SFSS) with different income thresholds and percentages","Special adjustment rules for anomalous pay years (53 weekly or 27 fortnightly pay periods)","Differentiated treatment for residents versus foreign residents with separate tax rate tables","Integration with Family Tax Benefit and tax offset systems requiring percentage-based reductions to withholding amounts"],"plain_english_summary":"This instrument issues the updated PAYG withholding schedules effective 1 July 2005, setting how employers must withhold income tax, the Medicare levy and student‑loan repayments (HELP/SFSS) from wages. It supplies revised tables and payroll formulas for all pay periods and special groups (e.g. foreign residents, performers, defence personnel), so employers and payroll software can calculate required deductions."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes","history":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes/history","analysis":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes/analysis","conflicts":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes/conflicts","importantCases":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes/important-cases","documents":"/api/acts/taxation-administration-act-1953-withholding-schedules-2005-2004-budget-changes/documents"}}