Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)
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Formulas
The 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.
Please 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.
General 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.
Sample data for verifying that the software program is calculating the correct withholding amounts and Medicare levy adjustments are shown on pages 5 to 8.