Schedule 1 – Statement of formulas for calculating amounts to be withheld
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by Subdivisions 12-B (except sections 12-50 and 12-55), and 12-D of Schedule 1 to the TAA.
If you develop your own payroll software package, this schedule provides the formulas that you will need to calculate the amounts to be withheld from payments made on a weekly, fortnightly, monthly or quarterly basis.
To assist employers who do not have a payroll software package our website makes available:
To assist employers who do not have a payroll software package our website makes available:
■ salary, wages, allowances and leave loading paid to employees
■ paid parental leave
■ directors' fees
■ salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)
■ payments to labour-hire workers
■ payments to religious practitioners
■ government pensions
■ government education or training payments
■ compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).
Do not use this schedule for payments made to individuals employed under a working holiday makers visa. You must use the Tax table for working holiday makers for all payments made to them, including lump sum payments.
If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to [withholding additional amounts from employee earnings](#paydates).
Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.
For scale 4 no coefficients are necessary. To calculate withholding, apply the tax rate to earnings, ignoring any cents in earnings and in the withholding result.
Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.
Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only.
For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $21,980 ($422 per week) or less. Where the taxable income exceeds $21,980 but is less than $27,475 ($528 per week), the levy is shaded in at the rate of 10% of the excess over $21,980. Where a person’s taxable income is $27,475 ($528 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
The Medicare levy is also shaded in for scale 6. The Medicare levy parameters for scales 2 and 6 are as follows:
Medicare levy parameters
Parameter
Scale 2
Scale 6
Weekly earnings threshold
422
713
Weekly earnings shade-in threshold
528
891
Medicare levy family threshold
37,089
37,089
Weekly family threshold divisor
52
52
Additional child
3,406
3,406
Shading out point multiplier
0.1000
0.0500
Shading out point divisor
0.0800
0.0400
Weekly levy adjustment factor
422.6900
713.2500
Medicare levy
0.0200
0.0100
About this schedule
Amounts to be withheld from payments made weekly, fortnightly, monthly and quarterly, as set out in the relevant PAYG withholding tax table, can be calculated using the formulas and coefficients contained in this schedule.
Separate formulas apply to:
■ employees who have not claimed the tax-free threshold
■ foreign residents
■ employees claiming a full exemption from Medicare levy
■ employees claiming a half exemption from Medicare levy
■ employees who have claimed the tax-free threshold.
■ x is the number of whole dollars in the weekly earnings plus 99 cents
■ a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).
The formulas relate only to the calculation of withholding amounts before any tax offsets and Medicare levy adjustments are allowed. For instructions on the treatment of tax offsets and Medicare levy adjustments, refer to Tax offsets and Medicare levy adjustment.
For sample data to verify that the software program is calculating the correct withholding amounts and Medicare levy adjustments, see Withholding amounts and Medicare levy adjustments.
Withholding amounts calculated using these formulas may vary slightly to those calculated using the method set out in the footnote to the appropriate PAYG withholding tax table. This applies if earnings exceed $3,275 weekly or $6,550 fortnightly.
Withholding amounts calculated as a result of applying the above formulas are rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.
Use these rounding rules across all scales except scale 4 (where employee does not provide a TFN). For scale 4, cents are ignored when applying the tax rate to earnings and when withholding amounts are calculated.
When there are 53 pays in a financial year
In some years, you may have 53 pays instead of the usual 52. As this schedule is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amount in the table below.
Extra withholding amount
Weekly earnings$
Additional withholding$
725 to 1,699
3
1,700 to 3,499
4
3,500 and over
9
When there are 27 pays in a financial year
In some years, you may have 27 pays instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amounts in the table below.
Extra withholding amount
Fortnightly earnings$
Additional withholding$
1,400 to 3,399
12
3,400 to 6,899
17
6,900 and over
37
Working out the weekly earnings
The method of working out the weekly earnings (x) for the purpose of applying the formulas is as follows:
Calculating withholding fortnightly, monthly or quarterly amounts
First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings. If you pay:
■ fortnightly – divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by two. Ignore any cents in the result and then add 99 cents.
■ monthly – obtain the sum of the monthly earnings and the amount of any allowances subject to withholding (if the result is an amount ending in 33 cents, add one cent), multiply this amount by three and then divide by 13. Ignore any cents in the result and then add 99 cents.
■ quarterly – divide the sum of the quarterly earnings and the amount of any allowances subject to withholding by 13. Ignore any cents in the result and then add 99 cents.
Then calculate fortnightly, monthly or quarterly withholding amounts as follows:
■ fortnightly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by two.
■ monthly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13, divide the product by three and round the result to the nearest dollar.
■ quarterly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13.
Tax offsets
The withholding amount calculated using scales 2, 5 or 6 of the formulas is reduced as follows:
■ weekly – 1.9% of the total amount claimed at the tax offsets questions on the Withholding declaration (NAT 3093), rounded to the nearest dollar
■ fortnightly – 3.8% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
■ monthly – 8.3% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
■ quarterly – 25% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar.
Medicare levy adjustment
A Medicare levy adjustment is not allowed where withholding amounts have been calculated using scales 1, 3, 4 or 5. The amount obtained using scales 2 or 6 (after allowing for any tax offsets) is reduced by any amount of Medicare levy adjustment applicable.
To claim the adjustment, the employee must answer yes to question 10 and yes to question 9, and/or question 12 on the Medicare levy variation declaration.
Calculating the Medicare levy adjustment
To calculate the Medicare levy adjustment, your software package will need to be able to distinguish those employees who have answered yes to question 9 and no to question 12 on the Medicare levy variation declaration.
Where employees have answered yes to question 12, the software must be able to store the number of dependants shown at this question on the declaration.
You will need to calculate the weekly family threshold and shading out point (SOP) before calculating the weekly levy adjustment for employees with weekly earnings of one of the following:
■ $528 or more where scale 2 is applied
■ $891 or more where scale 6 is applied.
Values used in the calculations may be regarded as variables.
Weekly family threshold (WFT)
Where scale 2 or scale 6 is applied
■ Where an employee has answered yes to question 9 and no to question 12 on the Medicare levy variation declaration:
– WFT = $713.25 (37,089 ÷ 52) (rounded to the nearest cent).
■ Where an employee has answered yes to question 12 on the Medicare levy variation declaration, you need to:
multiply the number of children shown at question 12 by 3,406 and add the result to 37,089
divide the result of (a) by 52
round the result of (b) to the nearest cent.
ExampleIf the employee has shown two dependent children at question 12:WFT = ([3,406 × 2] + 37,089) ÷ 52WFT = 844.2500 or $844.25 (rounded to the nearest cent)
Shading Out Point (SOP)
The SOP relative to an employee’s WFT is calculated as follows:
Multiply WFT by 0.1 and divide the result by 0.0800. Ignore any cents in the result.
ExampleEmployee has shown six dependent children at question 12 and scale 2 is applied:WFT = ([3,406 × 6] + 37,089) ÷ 52WFT = 1,106.2500 or $1,106.25 (rounded to the nearest cent)SOP = (WFT × 0.1) ÷ 0.0800SOP = ($1,106.25 × 0.1) ÷ 0.0800SOP = 1,382.8125 or $1,382 (ignoring cents)
Weekly Levy Adjustment (WLA)
Where scale 2 is applied
Where weekly earnings are $422 or more but less than the SOP, the WLA is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (refer to Working out the weekly earnings), in the following formulas:
If x is less than $528, WLA = (x − 422.69) × 0.1
If x is $528 or more but less than WFT, WLA = x × 0.0200
If x is equal to or greater than WFT and less than the SOP, WLA =
(WFT × 0.0200) − ([x − WFT] × 0.0800)
In each case WLA should be rounded to the nearest dollar.
Values ending in 50 cents should be rounded to the next higher dollar.
Example 1Employee’s weekly earnings are $465.33 and scale 2 is applied.x = 465.99As x is less than $528, WLA is calculated using formula (1):WLA = (465.99 − 422.69) × 0.1= 4.3300 or $4.00 (rounded to the nearest dollar).
Example 2Employee's weekly earnings are $892.47 and the number of children claimed at question 12 is three. Scale 6 is applied.x = 892.99WFT = ([3,406 × 3] + 37,089) ÷ 52= 909.7500 or $909.75 (rounded to the nearest cent)As x is greater than $891 and less than WFT, WLA is calculated using formula (2):WLA = 892.99 × 0.01= 8.9299 or $9.00 (rounded to the nearest dollar).
Example 3Employee’s weekly earnings are $982.29 and the number of children claimed at question 12 is four. Scale 2 is applied.x = 982.99WFT = ([3,406 × 4] + 37,089) ÷ 52= 975.2500 or $975.25 (rounded to the nearest cent).SOP = (975.25 × 0.1) ÷ 0.08= 1,219.0625 or $1,219 (ignoring cents).As x is greater than WFT and less than SOP, WLA is calculated using formula (3):WLA = (975.25 × 0.020) − ([982.99 − 975.25] × 0.0800)= 18.8858 or $19.00 (rounded to the nearest dollar)
Fortnightly levy adjustment
Multiply rounded weekly levy adjustment by two.
ExampleEmployee’s fortnightly earnings are $1,595.52 and the number of children claimed at question 12 is one. Scale 2 is applied.Equivalent weekly earnings = $1,595.52 ÷ 2= $797.76x = 797.99WFT = ([3,406 × 1] + 37,089) ÷ 52= 778.7500 or $778.75 (rounded to the nearest cent).SOP = (778.75 × 0.1) ÷ 0.08= 973.4375 or $973 (ignoring cents).As x is greater than WFT and less than SOP, formula (3) is used:WLA = (778.75 × 0.020) − ([797.99 − 778.75] × 0.0800)= 14.0358 or $14.00 (rounded to the nearest dollar).The fortnightly levy adjustment is therefore $28.00 ($14.00 × 2)
Monthly levy adjustment
Multiply rounded weekly levy adjustment by 13 and divide the result by three. The result should be rounded to the nearest dollar.
ExampleEmployee’s monthly earnings are $2,800.33 and has a spouse but no children. Scale 2 is applied.Equivalent weekly earnings = ($2,800.33 + 0.01) × 3 ÷ 13= $646.23x = 646.99WFT = $713.25As x is greater than $528 and less than WFT, formula (2) applies:WLA = 646.99 × 0.0200 = 12.9398 or $13.00 (rounded to the nearest dollar).The monthly adjustment is therefore $56.00 ($13.00 × 13 ÷ 3, rounded to the nearest dollar).
Quarterly levy adjustment
Multiply rounded weekly levy adjustment by 13
General examples
Example 1Employee's weekly earnings are $1,103.45. Employee has completed a Tax file number declaration claiming the tax-free threshold. The employee has also provided a Medicare levy variation declaration with five children shown at question 12.Therefore, scale 2 is applied.x = 1,103.99Weekly withholding amount (y)= (a × x) − b= (0.3477 × 1,103.99) − 165.4423= 218.4150 or $218.00 (rounded to nearest dollar)Levy adjustment: weekly earnings are greater than WFT ($1,040.75) and less than the SOP ($1,300) appropriate to employee with five children. Formula (3) applies.= (1,040.75 × 0.0200) – ([1,103.99 − 1,040.75] × 0.0800)= 20.8150 − 5.0592= 15.7558 or $16.00 (rounded to nearest dollar)Net weekly withholding amount$218.00 − $16.00 = $202.00
Example 2Employee's fortnightly earnings are $1,110.30. Employee resides in zone B, has provided a Tax file number declaration that claims the tax-free threshold and a Withholding declaration that claims zone and tax offsets at the tax offsets questions that totals $1,645. The employee has also lodged a Medicare levy variation declaration claiming a full exemption from the Medicare levy.Therefore, scale 5 is applied.Convert to weekly equivalent= (1,110.30 ÷ 2)= 555.15 or $555 (ignore cents)x = 555.99Weekly withholding amount (y)= (a × x) − b= (0.1900 × 555.99) − 67.4635= 38.1746 or $38.00 (rounded to nearest dollar)Fortnightly withholding amount$38.00 × 2 = $76.00Tax offsets claimed at the tax offsets questions on the Withholding declaration= 3.8% of $1,645= 62.5100 or $63.00 (rounded to nearest dollar)Net fortnightly withholding amount$76.00 − $63.00 = $13.00.
Example 3Employee's monthly earnings are $4,316.33. Employee has provided a Tax file number declaration claiming the tax-free threshold and claimed a total tax offset of $1,365 at the tax offsets question on the Withholding declaration. The employee has one child but is not eligible for a Medicare levy adjustment. The weekly equivalent of the employee’s earnings exceeds the Medicare levy SOP of $973 appropriate to an employee with one child.Therefore, scale 2 is applied.Convert to weekly equivalent= ($4,316.33 + 0.01) × 3 ÷ 13= 996.0785 or $996 (ignore cents)x = 996.99Weekly withholding amount (y)= (a × x) − b= (0.3477 × 996.99) − 165.4423= 181.2111 or $181.00 (rounded to nearest dollar)Monthly withholding amount$181.00 × 13 ÷ 3 = $784.00 (rounded to nearest dollar)Tax offset claimed= 8.3% of $1,365= 113.2950 or $113.00 (rounded to nearest dollar)Net monthly withholding amount$784.00 − $113.00 = $671.00
Calculating withholding amounts for payments made on a daily or casual basis
The withholding amounts shown in the Tax table for daily and casual workers can be expressed in a mathematical form, using the formulas and coefficients provided.
To work out withholding amounts using the formulas:
Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result.
Calculate the weekly amount by applying the coefficients at:
– Scale 1 where an employee is not claiming the tax-free threshold
– Scale 2 where an employee is claiming the tax-free threshold.
Round the result to the nearest dollar.
Divide this amount by five to convert it to the daily equivalent.
Round the daily withholding amount to the nearest dollar.
Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners.
Software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data provided. The results obtained when using the coefficients in this schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. The differences result from the rounding of components.
Sample data
Weekly withholding amounts
Weekly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
71
13.00
0.00
23.00
0.00
0.00
72
14.00
0.00
23.00
0.00
0.00
116
24.00
0.00
38.00
0.00
0.00
117
24.00
0.00
38.00
0.00
0.00
249
55.00
0.00
81.00
0.00
0.00
250
56.00
0.00
81.00
0.00
0.00
354
80.00
0.00
115.00
0.00
0.00
355
80.00
0.00
115.00
0.00
0.00
360
81.00
1.00
117.00
1.00
1.00
361
82.00
1.00
117.00
1.00
1.00
421
102.00
13.00
137.00
13.00
13.00
422
103.00
13.00
137.00
13.00
13.00
527
139.00
43.00
171.00
33.00
33.00
528
140.00
44.00
172.00
33.00
33.00
710
203.00
82.00
231.00
68.00
68.00
711
203.00
82.00
231.00
68.00
68.00
712
204.00
82.00
231.00
68.00
68.00
713
204.00
83.00
232.00
69.00
69.00
890
266.00
144.00
289.00
127.00
135.00
891
266.00
145.00
290.00
127.00
136.00
931
280.00
159.00
303.00
140.00
149.00
932
280.00
159.00
303.00
140.00
150.00
1281
401.00
280.00
416.00
255.00
267.00
1282
401.00
281.00
417.00
255.00
268.00
1379
434.00
314.00
448.00
287.00
300.00
1380
435.00
314.00
448.00
287.00
301.00
1729
571.00
435.00
562.00
400.00
418.00
1730
571.00
435.00
563.00
401.00
418.00
1844
616.00
480.00
605.00
443.00
461.00
1845
616.00
480.00
605.00
443.00
462.00
2119
723.00
587.00
707.00
545.00
566.00
2120
723.00
587.00
707.00
545.00
566.00
2490
868.00
732.00
844.00
682.00
707.00
2491
868.00
732.00
844.00
682.00
707.00
2652
931.00
795.00
904.00
742.00
768.00
2653
931.00
795.00
904.00
742.00
769.00
2736
964.00
828.00
935.00
773.00
800.00
2737
964.00
828.00
935.00
773.00
801.00
2898
1027.00
891.00
995.00
833.00
862.00
2899
1027.00
891.00
995.00
833.00
862.00
2913
1033.00
897.00
1000.00
838.00
867.00
2914
1033.00
897.00
1001.00
839.00
868.00
3110
1109.00
973.00
1073.00
911.00
942.00
3111
1110.00
974.00
1074.00
912.00
943.00
3460
1274.00
1110.00
1203.00
1041.00
1075.00
3461
1274.00
1110.00
1203.00
1041.00
1076.00
Fortnightly withholding amounts
Fortnightly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
142
26.00
0.00
46.00
0.00
0.00
144
28.00
0.00
46.00
0.00
0.00
232
48.00
0.00
76.00
0.00
0.00
234
48.00
0.00
76.00
0.00
0.00
498
110.00
0.00
162.00
0.00
0.00
500
112.00
0.00
162.00
0.00
0.00
708
160.00
0.00
230.00
0.00
0.00
710
160.00
0.00
230.00
0.00
0.00
720
162.00
2.00
234.00
2.00
2.00
722
164.00
2.00
234.00
2.00
2.00
842
204.00
26.00
274.00
26.00
26.00
844
206.00
26.00
274.00
26.00
26.00
1054
278.00
86.00
342.00
66.00
66.00
1056
280.00
88.00
344.00
66.00
66.00
1420
406.00
164.00
462.00
136.00
136.00
1422
406.00
164.00
462.00
136.00
136.00
1424
408.00
164.00
462.00
136.00
136.00
1426
408.00
166.00
464.00
138.00
138.00
1780
532.00
288.00
578.00
254.00
270.00
1782
532.00
290.00
580.00
254.00
272.00
1862
560.00
318.00
606.00
280.00
298.00
1864
560.00
318.00
606.00
280.00
300.00
2562
802.00
560.00
832.00
510.00
534.00
2564
802.00
562.00
834.00
510.00
536.00
2758
868.00
628.00
896.00
574.00
600.00
2760
870.00
628.00
896.00
574.00
602.00
3458
1142.00
870.00
1124.00
800.00
836.00
3460
1142.00
870.00
1126.00
802.00
836.00
3688
1232.00
960.00
1210.00
886.00
922.00
3690
1232.00
960.00
1210.00
886.00
924.00
4238
1446.00
1174.00
1414.00
1090.00
1132.00
4240
1446.00
1174.00
1414.00
1090.00
1132.00
4980
1736.00
1464.00
1688.00
1364.00
1414.00
4982
1736.00
1464.00
1688.00
1364.00
1414.00
5304
1862.00
1590.00
1808.00
1484.00
1536.00
5306
1862.00
1590.00
1808.00
1484.00
1538.00
5472
1928.00
1656.00
1870.00
1546.00
1600.00
5474
1928.00
1656.00
1870.00
1546.00
1602.00
5796
2054.00
1782.00
1990.00
1666.00
1724.00
5798
2054.00
1782.00
1990.00
1666.00
1724.00
5826
2066.00
1794.00
2000.00
1676.00
1734.00
5828
2066.00
1794.00
2002.00
1678.00
1736.00
6220
2218.00
1946.00
2146.00
1822.00
1884.00
6222
2220.00
1948.00
2148.00
1824.00
1886.00
6920
2548.00
2220.00
2406.00
2082.00
2150.00
6922
2548.00
2220.00
2406.00
2082.00
2152.00
Monthly withholding amounts
Monthly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
307.67
56.00
0.00
100.00
0.00
0.00
312.00
61.00
0.00
100.00
0.00
0.00
502.67
104.00
0.00
165.00
0.00
0.00
507.00
104.00
0.00
165.00
0.00
0.00
1079.00
238.00
0.00
351.00
0.00
0.00
1083.33
243.00
0.00
351.00
0.00
0.00
1534.00
347.00
0.00
498.00
0.00
0.00
1538.33
347.00
0.00
498.00
0.00
0.00
1560.00
351.00
4.00
507.00
4.00
4.00
1564.33
355.00
4.00
507.00
4.00
4.00
1824.33
442.00
56.00
594.00
56.00
56.00
1828.67
446.00
56.00
594.00
56.00
56.00
2283.67
602.00
186.00
741.00
143.00
143.00
2288.00
607.00
191.00
745.00
143.00
143.00
3076.67
880.00
355.00
1001.00
295.00
295.00
3081.00
880.00
355.00
1001.00
295.00
295.00
3085.33
884.00
355.00
1001.00
295.00
295.00
3089.67
884.00
360.00
1005.00
299.00
299.00
3856.67
1153.00
624.00
1252.00
550.00
585.00
3861.00
1153.00
628.00
1257.00
550.00
589.00
4034.33
1213.00
689.00
1313.00
607.00
646.00
4038.67
1213.00
689.00
1313.00
607.00
650.00
5551.00
1738.00
1213.00
1803.00
1105.00
1157.00
5555.33
1738.00
1218.00
1807.00
1105.00
1161.00
5975.67
1881.00
1361.00
1941.00
1244.00
1300.00
5980.00
1885.00
1361.00
1941.00
1244.00
1304.00
7492.33
2474.00
1885.00
2435.00
1733.00
1811.00
7496.67
2474.00
1885.00
2440.00
1738.00
1811.00
7990.67
2669.00
2080.00
2622.00
1920.00
1998.00
7995.00
2669.00
2080.00
2622.00
1920.00
2002.00
9182.33
3133.00
2544.00
3064.00
2362.00
2453.00
9186.67
3133.00
2544.00
3064.00
2362.00
2453.00
10790.00
3761.00
3172.00
3657.00
2955.00
3064.00
10794.33
3761.00
3172.00
3657.00
2955.00
3064.00
11492.00
4034.00
3445.00
3917.00
3215.00
3328.00
11496.33
4034.00
3445.00
3917.00
3215.00
3332.00
11856.00
4177.00
3588.00
4052.00
3350.00
3467.00
11860.33
4177.00
3588.00
4052.00
3350.00
3471.00
12558.00
4450.00
3861.00
4312.00
3610.00
3735.00
12562.33
4450.00
3861.00
4312.00
3610.00
3735.00
12623.00
4476.00
3887.00
4333.00
3631.00
3757.00
12627.33
4476.00
3887.00
4338.00
3636.00
3761.00
13476.67
4806.00
4216.00
4650.00
3948.00
4082.00
13481.00
4810.00
4221.00
4654.00
3952.00
4086.00
14993.33
5521.00
4810.00
5213.00
4511.00
4658.00
14997.67
5521.00
4810.00
5213.00
4511.00
4663.00
Sample data – Scale 2
Weekly Medicare levy adjustment
Weekly earnings$
Spouse only$
1child$
2children$
3children$
4children$
5children$
421
0.00
0.00
0.00
0.00
0.00
0.00
422
0.00
0.00
0.00
0.00
0.00
0.00
474
5.00
5.00
5.00
5.00
5.00
5.00
475
5.00
5.00
5.00
5.00
5.00
5.00
527
11.00
11.00
11.00
11.00
11.00
11.00
528
11.00
11.00
11.00
11.00
11.00
11.00
554
11.00
11.00
11.00
11.00
11.00
11.00
555
11.00
11.00
11.00
11.00
11.00
11.00
581
12.00
12.00
12.00
12.00
12.00
12.00
582
12.00
12.00
12.00
12.00
12.00
12.00
608
12.00
12.00
12.00
12.00
12.00
12.00
609
12.00
12.00
12.00
12.00
12.00
12.00
635
13.00
13.00
13.00
13.00
13.00
13.00
636
13.00
13.00
13.00
13.00
13.00
13.00
662
13.00
13.00
13.00
13.00
13.00
13.00
663
13.00
13.00
13.00
13.00
13.00
13.00
689
14.00
14.00
14.00
14.00
14.00
14.00
690
14.00
14.00
14.00
14.00
14.00
14.00
716
14.00
14.00
14.00
14.00
14.00
14.00
717
14.00
14.00
14.00
14.00
14.00
14.00
743
12.00
15.00
15.00
15.00
15.00
15.00
744
12.00
15.00
15.00
15.00
15.00
15.00
770
10.00
15.00
15.00
15.00
15.00
15.00
771
10.00
15.00
15.00
15.00
15.00
15.00
797
7.00
14.00
16.00
16.00
16.00
16.00
798
7.00
14.00
16.00
16.00
16.00
16.00
824
5.00
12.00
16.00
16.00
16.00
16.00
825
5.00
12.00
17.00
17.00
17.00
17.00
851
3.00
10.00
16.00
17.00
17.00
17.00
852
3.00
10.00
16.00
17.00
17.00
17.00
878
1.00
8.00
14.00
18.00
18.00
18.00
879
1.00
7.00
14.00
18.00
18.00
18.00
905
0.00
5.00
12.00
18.00
18.00
18.00
906
0.00
5.00
12.00
18.00
18.00
18.00
932
0.00
3.00
10.00
16.00
19.00
19.00
933
0.00
3.00
10.00
16.00
19.00
19.00
959
0.00
1.00
8.00
14.00
19.00
19.00
960
0.00
1.00
8.00
14.00
19.00
19.00
986
0.00
0.00
5.00
12.00
19.00
20.00
987
0.00
0.00
5.00
12.00
18.00
20.00
1013
0.00
0.00
3.00
10.00
16.00
20.00
1014
0.00
0.00
3.00
10.00
16.00
20.00
1040
0.00
0.00
1.00
8.00
14.00
21.00
1041
0.00
0.00
1.00
8.00
14.00
21.00
1218
0.00
0.00
0.00
0.00
0.00
7.00
1219
0.00
0.00
0.00
0.00
0.00
6.00
1299
0.00
0.00
0.00
0.00
0.00
0.00
1300
0.00
0.00
0.00
0.00
0.00
0.00
Fortnightly Medicare levy adjustment
Fortnightly earnings$
Spouse only$
1child$
2children$
3children$
4children$
5children$
842
0.00
0.00
0.00
0.00
0.00
0.00
844
0.00
0.00
0.00
0.00
0.00
0.00
948
10.00
10.00
10.00
10.00
10.00
10.00
950
10.00
10.00
10.00
10.00
10.00
10.00
1054
22.00
22.00
22.00
22.00
22.00
22.00
1056
22.00
22.00
22.00
22.00
22.00
22.00
1108
22.00
22.00
22.00
22.00
22.00
22.00
1110
22.00
22.00
22.00
22.00
22.00
22.00
1162
24.00
24.00
24.00
24.00
24.00
24.00
1164
24.00
24.00
24.00
24.00
24.00
24.00
1216
24.00
24.00
24.00
24.00
24.00
24.00
1218
24.00
24.00
24.00
24.00
24.00
24.00
1270
26.00
26.00
26.00
26.00
26.00
26.00
1272
26.00
26.00
26.00
26.00
26.00
26.00
1324
26.00
26.00
26.00
26.00
26.00
26.00
1326
26.00
26.00
26.00
26.00
26.00
26.00
1378
28.00
28.00
28.00
28.00
28.00
28.00
1380
28.00
28.00
28.00
28.00
28.00
28.00
1432
28.00
28.00
28.00
28.00
28.00
28.00
1434
28.00
28.00
28.00
28.00
28.00
28.00
1486
24.00
30.00
30.00
30.00
30.00
30.00
1488
24.00
30.00
30.00
30.00
30.00
30.00
1540
20.00
30.00
30.00
30.00
30.00
30.00
1542
20.00
30.00
30.00
30.00
30.00
30.00
1594
14.00
28.00
32.00
32.00
32.00
32.00
1596
14.00
28.00
32.00
32.00
32.00
32.00
1648
10.00
24.00
32.00
32.00
32.00
32.00
1650
10.00
24.00
34.00
34.00
34.00
34.00
1702
6.00
20.00
32.00
34.00
34.00
34.00
1704
6.00
20.00
32.00
34.00
34.00
34.00
1756
2.00
16.00
28.00
36.00
36.00
36.00
1758
2.00
14.00
28.00
36.00
36.00
36.00
1810
0.00
10.00
24.00
36.00
36.00
36.00
1812
0.00
10.00
24.00
36.00
36.00
36.00
1864
0.00
6.00
20.00
32.00
38.00
38.00
1866
0.00
6.00
20.00
32.00
38.00
38.00
1918
0.00
2.00
16.00
28.00
38.00
38.00
1920
0.00
2.00
16.00
28.00
38.00
38.00
1972
0.00
0.00
10.00
24.00
38.00
40.00
1974
0.00
0.00
10.00
24.00
36.00
40.00
2026
0.00
0.00
6.00
20.00
32.00
40.00
2028
0.00
0.00
6.00
20.00
32.00
40.00
2080
0.00
0.00
2.00
16.00
28.00
42.00
2082
0.00
0.00
2.00
16.00
28.00
42.00
2436
0.00
0.00
0.00
0.00
0.00
14.00
2438
0.00
0.00
0.00
0.00
0.00
12.00
2598
0.00
0.00
0.00
0.00
0.00
0.00
2600
0.00
0.00
0.00
0.00
0.00
0.00
Monthly Medicare levy adjustment
Monthly earnings$
Spouse only$
1child $
2children$
3children$
4children$
5children$
1824.33
0.00
0.00
0.00
0.00
0.00
0.00
1828.67
0.00
0.00
0.00
0.00
0.00
0.00
2054.00
22.00
22.00
22.00
22.00
22.00
22.00
2058.33
22.00
22.00
22.00
22.00
22.00
22.00
2283.67
48.00
48.00
48.00
48.00
48.00
48.00
2288.00
48.00
48.00
48.00
48.00
48.00
48.00
2400.67
48.00
48.00
48.00
48.00
48.00
48.00
2405.00
48.00
48.00
48.00
48.00
48.00
48.00
2517.67
52.00
52.00
52.00
52.00
52.00
52.00
2522.00
52.00
52.00
52.00
52.00
52.00
52.00
2634.67
52.00
52.00
52.00
52.00
52.00
52.00
2639.00
52.00
52.00
52.00
52.00
52.00
52.00
2751.67
56.00
56.00
56.00
56.00
56.00
56.00
2756.00
56.00
56.00
56.00
56.00
56.00
56.00
2868.67
56.00
56.00
56.00
56.00
56.00
56.00
2873.00
56.00
56.00
56.00
56.00
56.00
56.00
2985.67
61.00
61.00
61.00
61.00
61.00
61.00
2990.00
61.00
61.00
61.00
61.00
61.00
61.00
3102.67
61.00
61.00
61.00
61.00
61.00
61.00
3107.00
61.00
61.00
61.00
61.00
61.00
61.00
3219.67
52.00
65.00
65.00
65.00
65.00
65.00
3224.00
52.00
65.00
65.00
65.00
65.00
65.00
3336.67
43.00
65.00
65.00
65.00
65.00
65.00
3341.00
43.00
65.00
65.00
65.00
65.00
65.00
3453.67
30.00
61.00
69.00
69.00
69.00
69.00
3458.00
30.00
61.00
69.00
69.00
69.00
69.00
3570.67
22.00
52.00
69.00
69.00
69.00
69.00
3575.00
22.00
52.00
74.00
74.00
74.00
74.00
3687.67
13.00
43.00
69.00
74.00
74.00
74.00
3692.00
13.00
43.00
69.00
74.00
74.00
74.00
3804.67
4.00
35.00
61.00
78.00
78.00
78.00
3809.00
4.00
30.00
61.00
78.00
78.00
78.00
3921.67
0.00
22.00
52.00
78.00
78.00
78.00
3926.00
0.00
22.00
52.00
78.00
78.00
78.00
4038.67
0.00
13.00
43.00
69.00
82.00
82.00
4043.00
0.00
13.00
43.00
69.00
82.00
82.00
4155.67
0.00
4.00
35.00
61.00
82.00
82.00
4160.00
0.00
4.00
35.00
61.00
82.00
82.00
4272.67
0.00
0.00
22.00
52.00
82.00
87.00
4277.00
0.00
0.00
22.00
52.00
78.00
87.00
4389.67
0.00
0.00
13.00
43.00
69.00
87.00
4394.00
0.00
0.00
13.00
43.00
69.00
87.00
4506.67
0.00
0.00
4.00
35.00
61.00
91.00
4511.00
0.00
0.00
4.00
35.00
61.00
91.00
5278.00
0.00
0.00
0.00
0.00
0.00
30.00
5282.33
0.00
0.00
0.00
0.00
0.00
26.00
5629.00
0.00
0.00
0.00
0.00
0.00
0.00
5633.33
0.00
0.00
0.00
0.00
0.00
0.00
Sample data – Scale 6
Weekly Medicare half-levy adjustment
Weeklyearnings$
1child$
2children$
3children$
4children$
5children$
712
0.00
0.00
0.00
0.00
0.00
713
0.00
0.00
0.00
0.00
0.00
801
4.00
4.00
4.00
4.00
4.00
802
4.00
4.00
4.00
4.00
4.00
890
9.00
9.00
9.00
9.00
9.00
891
3.00
7.00
9.00
9.00
9.00
906
3.00
6.00
9.00
9.00
9.00
907
3.00
6.00
9.00
9.00
9.00
922
2.00
5.00
9.00
9.00
9.00
923
2.00
5.00
9.00
9.00
9.00
938
1.00
5.00
8.00
9.00
9.00
939
1.00
5.00
8.00
9.00
9.00
954
1.00
4.00
7.00
10.00
10.00
955
1.00
4.00
7.00
10.00
10.00
970
0.00
3.00
7.00
10.00
10.00
971
0.00
3.00
7.00
10.00
10.00
986
0.00
3.00
6.00
9.00
10.00
987
0.00
3.00
6.00
9.00
10.00
1002
0.00
2.00
5.00
9.00
10.00
1003
0.00
2.00
5.00
9.00
10.00
1018
0.00
1.00
5.00
8.00
10.00
1019
0.00
1.00
5.00
8.00
10.00
1034
0.00
1.00
4.00
7.00
10.00
1035
0.00
1.00
4.00
7.00
10.00
1050
0.00
0.00
3.00
7.00
10.00
1051
0.00
0.00
3.00
7.00
10.00
1066
0.00
0.00
3.00
6.00
9.00
1067
0.00
0.00
3.00
6.00
9.00
1082
0.00
0.00
2.00
5.00
9.00
1083
0.00
0.00
2.00
5.00
9.00
1098
0.00
0.00
2.00
5.00
8.00
1099
0.00
0.00
1.00
5.00
8.00
1114
0.00
0.00
1.00
4.00
7.00
1115
0.00
0.00
1.00
4.00
7.00
1130
0.00
0.00
0.00
4.00
7.00
1131
0.00
0.00
0.00
3.00
7.00
1146
0.00
0.00
0.00
3.00
6.00
1147
0.00
0.00
0.00
3.00
6.00
1162
0.00
0.00
0.00
2.00
6.00
1163
0.00
0.00
0.00
2.00
5.00
1178
0.00
0.00
0.00
2.00
5.00
1179
0.00
0.00
0.00
2.00
5.00
1194
0.00
0.00
0.00
1.00
4.00
1195
0.00
0.00
0.00
1.00
4.00
1218
0.00
0.00
0.00
0.00
3.00
1219
0.00
0.00
0.00
0.00
3.00
1299
0.00
0.00
0.00
0.00
0.00
1300
0.00
0.00
0.00
0.00
0.00
Fortnightly Medicare half-levy adjustment
Fortnightly earnings$
1child$
2children$
3children$
4children$
5children$
1424
0.00
0.00
0.00
0.00
0.00
1426
0.00
0.00
0.00
0.00
0.00
1602
8.00
8.00
8.00
8.00
8.00
1604
8.00
8.00
8.00
8.00
8.00
1780
18.00
18.00
18.00
18.00
18.00
1782
6.00
14.00
18.00
18.00
18.00
1812
6.00
12.00
18.00
18.00
18.00
1814
6.00
12.00
18.00
18.00
18.00
1844
4.00
10.00
18.00
18.00
18.00
1846
4.00
10.00
18.00
18.00
18.00
1876
2.00
10.00
16.00
18.00
18.00
1878
2.00
10.00
16.00
18.00
18.00
1908
2.00
8.00
14.00
20.00
20.00
1910
2.00
8.00
14.00
20.00
20.00
1940
0.00
6.00
14.00
20.00
20.00
1942
0.00
6.00
14.00
20.00
20.00
1972
0.00
6.00
12.00
18.00
20.00
1974
0.00
6.00
12.00
18.00
20.00
2004
0.00
4.00
10.00
18.00
20.00
2006
0.00
4.00
10.00
18.00
20.00
2036
0.00
2.00
10.00
16.00
20.00
2038
0.00
2.00
10.00
16.00
20.00
2068
0.00
2.00
8.00
14.00
20.00
2070
0.00
2.00
8.00
14.00
20.00
2100
0.00
0.00
6.00
14.00
20.00
2102
0.00
0.00
6.00
14.00
20.00
2132
0.00
0.00
6.00
12.00
18.00
2134
0.00
0.00
6.00
12.00
18.00
2164
0.00
0.00
4.00
10.00
18.00
2166
0.00
0.00
4.00
10.00
18.00
2196
0.00
0.00
4.00
10.00
16.00
2198
0.00
0.00
2.00
10.00
16.00
2228
0.00
0.00
2.00
8.00
14.00
2230
0.00
0.00
2.00
8.00
14.00
2260
0.00
0.00
0.00
8.00
14.00
2262
0.00
0.00
0.00
6.00
14.00
2292
0.00
0.00
0.00
6.00
12.00
2294
0.00
0.00
0.00
6.00
12.00
2324
0.00
0.00
0.00
4.00
12.00
2326
0.00
0.00
0.00
4.00
10.00
2356
0.00
0.00
0.00
4.00
10.00
2358
0.00
0.00
0.00
4.00
10.00
2388
0.00
0.00
0.00
2.00
8.00
2390
0.00
0.00
0.00
2.00
8.00
2436
0.00
0.00
0.00
0.00
6.00
2438
0.00
0.00
0.00
0.00
6.00
2598
0.00
0.00
0.00
0.00
0.00
2600
0.00
0.00
0.00
0.00
0.00
Monthly Medicare half-levy adjustment
Monthlyearnings$
1child$
2children$
3children$
4children$
5children$
3085.33
0.00
0.00
0.00
0.00
0.00
3089.67
0.00
0.00
0.00
0.00
0.00
3471.00
17.00
17.00
17.00
17.00
17.00
3475.33
17.00
17.00
17.00
17.00
17.00
3856.67
39.00
39.00
39.00
39.00
39.00
3861.00
13.00
30.00
39.00
39.00
39.00
3926.00
13.00
26.00
39.00
39.00
39.00
3930.33
13.00
26.00
39.00
39.00
39.00
3995.33
9.00
22.00
39.00
39.00
39.00
3999.67
9.00
22.00
39.00
39.00
39.00
4064.67
4.00
22.00
35.00
39.00
39.00
4069.00
4.00
22.00
35.00
39.00
39.00
4134.00
4.00
17.00
30.00
43.00
43.00
4138.33
4.00
17.00
30.00
43.00
43.00
4203.33
0.00
13.00
30.00
43.00
43.00
4207.67
0.00
13.00
30.00
43.00
43.00
4272.67
0.00
13.00
26.00
39.00
43.00
4277.00
0.00
13.00
26.00
39.00
43.00
4342.00
0.00
9.00
22.00
39.00
43.00
4346.33
0.00
9.00
22.00
39.00
43.00
4411.33
0.00
4.00
22.00
35.00
43.00
4415.67
0.00
4.00
22.00
35.00
43.00
4480.67
0.00
4.00
17.00
30.00
43.00
4485.00
0.00
4.00
17.00
30.00
43.00
4550.00
0.00
0.00
13.00
30.00
43.00
4554.33
0.00
0.00
13.00
30.00
43.00
4619.33
0.00
0.00
13.00
26.00
39.00
4623.67
0.00
0.00
13.00
26.00
39.00
4688.67
0.00
0.00
9.00
22.00
39.00
4693.00
0.00
0.00
9.00
22.00
39.00
4758.00
0.00
0.00
9.00
22.00
35.00
4762.33
0.00
0.00
4.00
22.00
35.00
4827.33
0.00
0.00
4.00
17.00
30.00
4831.67
0.00
0.00
4.00
17.00
30.00
4896.67
0.00
0.00
0.00
17.00
30.00
4901.00
0.00
0.00
0.00
13.00
30.00
4966.00
0.00
0.00
0.00
13.00
26.00
4970.33
0.00
0.00
0.00
13.00
26.00
5035.33
0.00
0.00
0.00
9.00
26.00
5039.67
0.00
0.00
0.00
9.00
22.00
5104.67
0.00
0.00
0.00
9.00
22.00
5109.00
0.00
0.00
0.00
9.00
22.00
5174.00
0.00
0.00
0.00
4.00
17.00
5178.33
0.00
0.00
0.00
4.00
17.00
5278.00
0.00
0.00
0.00
0.00
13.00
5282.33
0.00
0.00
0.00
0.00
13.00
5629.00
0.00
0.00
0.00
0.00
0.00
5633.33
0.00
0.00
0.00
0.00
0.00
Other statements of formulas
Statements of formulas for other classes of payees are also available. These include PAYG withholding:
The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.
If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.
You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee, (ignoring any cents) if all of the following apply:
If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.
Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for:
When your employee is a foreign resident
If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.
There are two ways you can withhold from a foreign resident’s earnings:
■ If they have given you a valid TFN, use scale 3
■ If they have not given you a valid TFN, use scale 4.
Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.
An employee may use a Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding from you.
Employees can also use a Withholding declaration to advise you of any changes to their situation that may affect the amount you need to withhold from their payments.
■ advising of a HELP, SSL, TSL or Financial Supplement debt, or changes to them
■ entitlement to a seniors and pensioners tax offset.
When your employee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from an employee, it will replace the previous one.
An employee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.
When your employee has a HELP, SSL, TSL or Financial Supplement debt
If your employee has a HELP, SSL, TSL or Financial Supplement debt, you may need to withhold additional amounts from their payments. Your employee will need to notify you of this on their Tax file number declaration or Withholding declaration.
[Statement of formulas for calculating HELP, SSL, TSL and SFSS components](https://www.ato.gov.au/rates/schedule-8---statement-of-formulas-for-calculating-help,-ssl,-tsl-and-sfss-components/)
Employees who are entitled to a reduction of Medicare levy or do not have to pay the Medicare levy because of low family income, will not have to make a compulsory HELP, SSL, TSL or Financial Supplement repayment for that year. The exemption from making a compulsory HELP, SSL, TSL or Financial Supplement repayment may be claimed on the Medicare levy variation declaration.
Allowances
Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.
If you pay leave loading on a pro-rata basis, add the leave loading payment to earnings for that period to calculate withholding.
Holiday pay, long service leave and employment termination payments
Employees who continue working for you
You must include holiday pay (including any leave loading) and long service leave payments as part of normal earnings, except when they are paid on termination of employment.
Do not withhold any amount for HELP, SSL, TSL or Financial Supplement debts from lump sum termination payments.
If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration.
To work out the employee’s annual tax offset entitlement into a weekly, fortnightly, monthly or quarterly amount, refer to Tax offsets.
Do not allow for any tax offsets if any of the following apply:
■ where no tax-free threshold is claimed
■ you are using foreign resident rates
■ when an employee does not provide you with their TFN.
Medicare levy adjustment
To claim the Medicare levy adjustment (available in certain situations), your employee must lodge a Medicare levy variation declaration with their Tax file number declaration.
Some employees may be liable for an increased rate of the Medicare levy surcharge as a result of the income for surcharge purposes tests. They can lodge a Medicare levy variation declaration, requesting you to increase the amount to be withheld from their payments.