Taxation Administration Act Withholding Schedules 2015
16August 1978 to 17 August 1993 component = $7,700.00
Start here
Get a plain-English read of 16
Turn the raw legal text into a practical explanation grounded in Taxation Administration Act Withholding Schedules 2015.
16 August 1978 to 17 August 1993 component = $7,700.00
Post-17 August 1993 component = $10,890.00
Pre–16 August 1978 component subject to withholding
= $3,690.00 × 5% = $184.50
The marginal rate calculation is used to work out the amount to be withheld from the pre-16 August 1978 component.
16 August 1978 to 17 August 1993 component
= $7,700.00 × 32% = $2,464.00
The post-17 August 1993 component of $10,890.00 is also to be withheld at the marginal rate. To simplify the marginal rate calculation for this employee, the pre-16 August 1978 component and the post-17 August 1993 component are added together first: $184.50 + $10,890.00 = $11,074.50
Now apply the marginal rate calculation to the sum of the two components.
| Step | Instruction | Result |
|---|---|---|
| 1 | Amounts to be withheld from normal gross earnings ($800) | $110 |
| 2 | Divide the amount of the payment by the number of normal pay periods in 12 months ($11,074.50/52) | $212.97 |
| 3 | Disregard any cents | $212 |
| 4 | Add the amount at step 3 to normal gross earnings for a single pay period ($800 + $212) | $1,012 |
| 5 | Work out the amount to be withheld from the amount at step 4 ($1,012) | $185 |
| 6 | Subtract the amount at step 1 from the amount at step 5 ($185 – $110) | $75 |
| 7 | Multiply the amount at step 6 by the number of normal pay periods in 12 months ($75 x 52) | $3,900 |
The amount to be withheld from the three components of Beth’s unused long service leave payments is $6,364 ($2,464 + $3,900).
The total amount to be withheld is then $6,474 ($110 withholding from normal earnings plus $6,364 withholding from long service leave).
If your employee who is receiving the unused leave payments has not provided you with their TFN before the payment is made, you must withhold 49% from the payment.
If your employee is a foreign resident who has not provided you with their TFN, you must withhold 47% from the payment.
If your employee believes that for their circumstances the amount you withhold will be too much, they may apply for a variation to reduce the amount of withholding.