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 you will need to calculate the amounts to be withheld from payments made on a weekly, fortnightly, monthly or quarterly basis.
To assist employers who don't have a payroll software package, our website provides the following tools which are based on the formulas in this schedule:
■ a tax withheld calculator, and
■ tax tables
Payments covered include:
■ salary, wages, allowances and leave loading paid to employees
■ paid parental leave
■ directors' fees
■ salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)
■ payments to labour-hire workers
■ payments to religious practitioners
■ government pensions
■ government education or training payments
■ compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).
Do not use this schedule for payments made to individuals employed under a working holiday makers visa. You must use the Tax table for working holiday makers for all payments made to them, including lump sum payments.
■ You can download a printable version of Statement of formulas for calculating amounts to be withheld (PDF, 579KB) (NAT 1004) in Portable Document Format (PDF).
Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments
Where the tax-free threshold is not claimed in Tax file number declaration – Scale 1
Scale 1 contains a negative value for one of the b coefficients. This is intentional.
If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings.
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 $22,801 ($438 per week) or less. Where the taxable income exceeds $22,801 but is less than $28,501 ($548 per week), the levy is shaded in at the rate of 10% of the excess over $22,801. Where a person’s taxable income is $28,501 ($548 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
The Medicare levy is also shaded in for scale 6. The Medicare levy parameters for scales 2 and 6 are as follows:
Medicare levy parameters
Parameter
Scale 2
Scale 6
Weekly earnings threshold
438
739
Weekly earnings shade-in threshold
548
924
Medicare levy family threshold
38,474
38,474
Weekly family threshold divisor
52
52
Additional child
3,533
3,533
Shading out point multiplier
0.1000
0.0500
Shading out point divisor
0.0800
0.0400
Weekly levy adjustment factor
438.4800
739.8800
Medicare levy
0.0200
0.0100
About this schedule
Amounts to be withheld from payments made weekly, fortnightly, monthly and quarterly, as set out in the relevant PAYG withholding tax table, can be calculated using the formulas and coefficients contained in this schedule.
Separate formulas apply to:
■ employees who have not claimed the tax-free threshold
■ foreign residents
■ employees claiming a full exemption from Medicare levy
■ employees claiming a half exemption from Medicare levy
■ employees who have claimed the tax-free threshold.
■ Tax file number (TFN) declarations
■ Withholding declarations
■ Allowances
■ Holiday pay, long service leave and employment termination payments
■ Claiming tax offsets
■ Medicare levy adjustment
■ 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 $6,550 fortnightly.
Withholding amounts calculated as a result of applying the above formulas are rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.
Use these rounding rules across all scales except scale 4 (where employee does not provide a TFN). For scale 4, cents are ignored when applying the tax rate to earnings and when withholding amounts are calculated.
When there are 53 pays in a financial year
In some years, you may have 53 pays instead of the usual 52. As this schedule is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amount in the table below.
Extra withholding amount, 53 pays
Weekly earnings$
Additional withholding$
875 to 2,299
3
2,300 to 3,449
5
3,450 and over
10
When there are 27 pays in a financial year
In some years, you may have 27 pays instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let employees know when this occurs so if they are concerned about a shortfall in tax withheld, they can ask you to withhold the additional amounts in the table below.
Extra withholding amount, 27 pays
Fortnightly earnings$
Additional withholding$
1,750 to 4,549
13
4,550 to 6,749
21
6,750 and over
40
Working out the weekly earnings
The method of working out the weekly earnings (x) for the purpose of applying the formulas is as follows:
Calculating withholding fortnightly, monthly or quarterly amounts
First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings. If you pay:
■ fortnightly – divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by two. Ignore any cents in the result and then add 99 cents.
■ monthly – obtain the sum of the monthly earnings and the amount of any allowances subject to withholding (if the result is an amount ending in 33 cents, add one cent), multiply this amount by three and then divide by 13. Ignore any cents in the result and then add 99 cents.
■ quarterly – divide the sum of the quarterly earnings and the amount of any allowances subject to withholding by 13. Ignore any cents in the result and then add 99 cents.
Then calculate fortnightly, monthly or quarterly withholding amounts as follows:
■ fortnightly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by two.
■ monthly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13, divide the product by three and round the result to the nearest dollar.
■ quarterly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13.
Tax offsets
The withholding amount calculated using scales 2, 5 or 6 of the formulas is reduced as follows:
■ weekly – 1.9% of the total amount claimed at the tax offsets questions on the Withholding declaration (NAT 3093), rounded to the nearest dollar
■ fortnightly – 3.8% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
■ monthly – 8.3% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
■ quarterly – 25% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar.
Medicare levy adjustment
A Medicare levy adjustment is not allowed where withholding amounts have been calculated using scales 1, 3, 4 or 5. The amount obtained using scales 2 or 6 (after allowing for any tax offsets) is reduced by any amount of Medicare levy adjustment applicable.
When an employee is entitled to an adjustment
An employee who has lodged both a completed Withholding declaration and a Medicare levy variation declaration, may be entitled to a Medicare levy adjustment if they have weekly earnings of one of the following:
■ $438 or more where scale 2 is applied
■ $739 or more where scale 6 is applied.
To claim the adjustment, the employee must answer yes to question 10 and yes to question 9, and/or question 12 on the Medicare levy variation declaration.
Calculating the Medicare levy adjustment
To calculate the Medicare levy adjustment, your software package will need to be able to distinguish those employees who have answered yes to question 9 and no to question 12 on the Medicare levy variation declaration.
Where employees have answered yes to question 12, the software must be able to store the number of dependants shown at this question on the declaration.
You will need to calculate the weekly family threshold and shading out point (SOP) before calculating the weekly levy adjustment for employees with weekly earnings of one of the following:
■ $548 or more where scale 2 is applied
■ $924 or more where scale 6 is applied.
Values used in the calculations may be regarded as variables.
Weekly family threshold (WFT)
Where scale 2 or scale 6 is applied
■ Where an employee has answered yes to question 9 and no to question 12 on the Medicare levy variation declaration:
– WFT = $739.88 (38,414 ÷ 52) (rounded to the nearest cent).
■ Where an employee has answered yes to question 12 on the Medicare levy variation declaration, you need to:
multiply the number of children shown at question 12 by 3,533 and add the result to 38,474
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 = ([3,533 × 2] + 38,474) ÷ 52WFT = 875.7692 or $875.77 (rounded to the nearest cent)
Shading out point (SOP)
The SOP relative to an employee’s WFT is calculated as follows:
Multiply WFT by 0.1 and divide the result by 0.0800. Ignore any cents in the result.
ExampleEmployee has shown six dependent children at question 12 and scale 2 is applied:WFT = ([3,533 × 6] + 38,474) ÷ 52WFT = 1,147.5385 or $1,147.54 (rounded to the nearest cent)SOP = (WFT × 0.1) ÷ 0.0800SOP = ($1,147.54 × 0.1) ÷ 0.0800SOP = 1,434.4250 or $1,434 (ignoring cents)
Weekly levy adjustment (WLA)
Where scale 2 is applied
Where weekly earnings are $422 or more but less than the SOP, the WLA is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (refer to Working out the weekly earnings), in the following formulas:
If x is less than $548, WLA = (x – 4238.48) × 0.1
If x is $58 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)
Where scale 6 is applied
Where weekly earnings are $739 or more but less than the SOP, the WLA is derived by applying the weekly earnings (x) expressed in whole dollars plus an amount of 99 cents (refer to Working out the weekly earnings), in the following formulas:
If x is less than $924, WLA = (x − 739.88) × 0.05
If x is $924 or more but less than WFT, WLA = x × 0.0100
If x is equal to or greater than WFT and less than the SOP, WLA =
(WFT × 0.0100) − ([x − WFT] × 0.0400)
In each case WLA should be rounded to the nearest dollar.
Values ending in 50 cents should be rounded to the next higher dollar.
Example 1Employee’s weekly earnings are $465.33 and scale 2 is applied.x = 465.99As x is less than $548, WLA is calculated using formula (1):WLA = (465.99 − 438.48) × 0.1= 2.7510 or $3.00 (rounded to the nearest dollar).
Example 2Employee's weekly earnings are $925.25 and the number of children claimed at question 12 is three. Scale 6 is applied.x = 925.99WFT = ([3,533 × 3] + 38,474) ÷ 52= 943.7115 or $943.71 (rounded to the nearest cent)As x is greater than $924 and less than WFT, WLA is calculated using formula (2):WLA = 925.99 × 0.01= 9.2599 or $9.00 (rounded to the nearest dollar).
Example 3Employee’s weekly earnings are $1,200.47 and the number of children claimed at question 12 is four. Scale 2 is applied.x = 1,200.99WFT = ([3,533 × 4] + 38,474) ÷ 52= 1,011.6538 or $1,011.65 (rounded to the nearest cent).SOP = (1,011.65 × 0.1) ÷ 0.08= 1,264.5625 or $1,264 (ignoring cents).As x is greater than WFT and less than SOP, WLA is calculated using formula (3):WLA = (1,011.65 × 0.020) − ([1,200.99 − 1,011.65] × 0.0800)= 5.0858 or $5.00 (rounded to the nearest dollar)
Fortnightly levy adjustment
Multiply rounded weekly levy adjustment by two.
ExampleEmployee’s fortnightly earnings are $1,650.52 and the number of children claimed at question 12 is one. Scale 2 is applied.Equivalent weekly earnings = $1,650.52 ÷ 2= $825.26x = 825.99WFT = ([3,533 × 1] + 38,474) ÷ 52= 807.8269 or $807.83 (rounded to the nearest cent).SOP = (807.83 × 0.1) ÷ 0.08= 1,009.7875 or $1,009 (ignoring cents).As x is greater than WFT and less than SOP, formula (3) is used:WLA = (807.83 × 0.020) − ([825.99 − 807.83] × 0.0800)= 14.7038 or $15.00 (rounded to the nearest dollar).The fortnightly levy adjustment is therefore $30.00 ($15.00 × 2)
Monthly levy adjustment
Multiply rounded weekly levy adjustment by 13 and divide the result by three. The result should be rounded to the nearest dollar.
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 = $739.88As x is greater than $548 and less than WFT, formula (2) applies:WLA = 646.99 × 0.0200 = 12.9398 or $13.00 (rounded to the nearest dollar).The monthly adjustment is therefore $56.00 ($13.00 × 13 ÷ 3, rounded to the nearest dollar).
Quarterly levy adjustment
Multiply rounded weekly levy adjustment by 13
General examples
Example 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) − 186.2119= 197.6454 or $198.00 (rounded to nearest dollar)Levy adjustment: weekly earnings are greater than WFT ($1,079.60) and less than the SOP ($1,349) appropriate to an employee with five children. Formula (3) applies.= (1,079.60 × 0.0200) – ([1,103.99 − 1,079.60] × 0.0800)= 21.5920 − 1.9512= 19.6408 or $20.00 (rounded to nearest dollar)Net weekly withholding amount$198.00 − $20.00 = $178.00
Example 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) − 68.3462= 37.2919 or $37.00 (rounded to nearest dollar)Fortnightly withholding amount$37.00 × 2 = $74.00Tax 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$74.00 − $63.00 = $11.00.
Example 3Employee's monthly earnings are $4,500.33. Employee has provided a Tax file number declaration claiming the tax-free threshold and claimed a total tax offset of $1,365 at the tax offsets question on the Withholding declaration. The employee has one child but is not eligible for a Medicare levy adjustment. The weekly equivalent of the employee’s earnings exceeds the Medicare levy SOP of $1,009 appropriate to an employee with one child.Therefore, scale 2 is applied.Convert to weekly equivalent= ($4,500.33 + 0.01) × 3 ÷ 13= 1,038.5400 or $1,038 (ignore cents)x = 1,038.99Weekly withholding amount (y)= (a × x) − b= (0.3477 × 1,038.99) − 186.2119= 175.0449 or $175.00 (rounded to nearest dollar)Monthly withholding amount$175.00 × 13 ÷ 3 = $758.33 or $758.00 (rounded to nearest dollar)Tax offset claimed= 8.3% of $1,365= 113.2950 or $113.00 (rounded to nearest dollar)Net monthly withholding amount$758.00 − $113.00 = $645.00
Calculating withholding amounts for payments made on a daily or casual basis
The withholding amounts shown in the Tax table for daily and casual workers can be expressed in a mathematical form, using the formulas and coefficients provided.
To work out withholding amounts using the formulas:
Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result.
Calculate the weekly amount by applying the coefficients at:
– Scale 2 where an employee is claiming the tax-free threshold. (The employee must have claimed the tax-free threshold to use the Tax table for daily and casual workers.)
Round the result to the nearest dollar.
Divide this amount by five to convert it to the daily equivalent.
Round the daily withholding amount to the nearest dollar.
Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners.
Software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data provided. The results obtained when using the coefficients in this schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.
Sample data
Weekly withholding amounts
Weekly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
87
17.00
0.00
28.00
0.00
0.00
88
17.00
0.00
29.00
0.00
0.00
116
24.00
0.00
38.00
0.00
0.00
117
24.00
0.00
38.00
0.00
0.00
249
55.00
0.00
81.00
0.00
0.00
250
55.00
0.00
81.00
0.00
0.00
358
80.00
0.00
116.00
0.00
0.00
359
81.00
0.00
117.00
0.00
0.00
370
83.00
2.00
120.00
2.00
2.00
371
83.00
2.00
121.00
2.00
2.00
437
98.00
15.00
142.00
15.00
15.00
438
98.00
15.00
142.00
15.00
15.00
514
115.00
37.00
167.00
30.00
30.00
515
115.00
37.00
167.00
30.00
30.00
547
126.00
47.00
178.00
36.00
36.00
548
126.00
47.00
178.00
36.00
36.00
720
186.00
83.00
234.00
69.00
69.00
721
187.00
83.00
234.00
69.00
69.00
738
193.00
87.00
240.00
72.00
72.00
739
193.00
87.00
240.00
72.00
72.00
864
236.00
115.00
281.00
97.00
104.00
865
237.00
115.00
281.00
98.00
104.00
923
257.00
135.00
300.00
117.00
126.00
924
257.00
135.00
300.00
117.00
126.00
931
260.00
138.00
303.00
119.00
129.00
932
260.00
138.00
303.00
120.00
129.00
1,281
380.00
260.00
416.00
234.00
247.00
1,282
381.00
260.00
417.00
234.00
247.00
1,844
575.00
454.00
599.00
417.00
435.00
1,845
575.00
454.00
600.00
417.00
436.00
1,956
613.00
492.00
636.00
453.00
473.00
1,957
614.00
493.00
636.00
454.00
473.00
2,119
677.00
549.00
689.00
506.00
527.00
2,120
677.00
549.00
689.00
507.00
528.00
2,306
750.00
613.00
749.00
567.00
590.00
2,307
750.00
614.00
750.00
567.00
590.00
2,490
821.00
685.00
818.00
635.00
660.00
2,491
822.00
685.00
818.00
635.00
660.00
2,652
885.00
748.00
878.00
695.00
722.00
2,653
885.00
748.00
878.00
695.00
722.00
2,736
917.00
781.00
909.00
726.00
753.00
2,737
918.00
781.00
909.00
726.00
754.00
2,898
981.00
844.00
969.00
786.00
815.00
2,899
981.00
844.00
969.00
786.00
815.00
2,913
986.00
850.00
974.00
792.00
821.00
2,914
987.00
850.00
975.00
792.00
821.00
3,111
1,064.00
927.00
1,048.00
865.00
896.00
3,461
1,228.00
1,064.00
1,177.00
994.00
1,029.00
Fortnightly withholding amounts
Fortnightly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
174
34.00
0.00
56.00
0.00
0.00
176
34.00
0.00
58.00
0.00
0.00
232
48.00
0.00
76.00
0.00
0.00
234
48.00
0.00
76.00
0.00
0.00
498
110.00
0.00
162.00
0.00
0.00
500
110.00
0.00
162.00
0.00
0.00
716
160.00
0.00
232.00
0.00
0.00
718
162.00
0.00
234.00
0.00
0.00
740
166.00
4.00
240.00
4.00
4.00
742
166.00
4.00
242.00
4.00
4.00
874
196.00
30.00
284.00
30.00
30.00
876
196.00
30.00
284.00
30.00
30.00
1,028
230.00
74.00
334.00
60.00
60.00
1,030
230.00
74.00
334.00
60.00
60.00
1,094
252.00
94.00
356.00
72.00
72.00
1,096
252.00
94.00
356.00
72.00
72.00
1,440
372.00
166.00
468.00
138.00
138.00
1,442
374.00
166.00
468.00
138.00
138.00
1,476
386.00
174.00
480.00
144.00
144.00
1,478
386.00
174.00
480.00
144.00
144.00
1,728
472.00
230.00
562.00
194.00
208.00
1,730
474.00
230.00
562.00
196.00
208.00
1,846
514.00
270.00
600.00
234.00
252.00
1,848
514.00
270.00
600.00
234.00
252.00
1,862
520.00
276.00
606.00
238.00
258.00
1,864
520.00
276.00
606.00
240.00
258.00
2,562
760.00
520.00
832.00
468.00
494.00
2,564
762.00
520.00
834.00
468.00
494.00
3,688
1,150.00
908.00
1,198.00
834.00
870.00
3,690
1,150.00
908.00
1,200.00
834.00
872.00
3,912
1,226.00
984.00
1,272.00
906.00
946.00
3,914
1,228.00
986.00
1,272.00
908.00
946.00
4,238
1,354.00
1,098.00
1,378.00
1,012.00
1,054.00
4,240
1,354.00
1,098.00
1,378.00
1,014.00
1,056.00
4,612
1,500.00
1,226.00
1,498.00
1,134.00
1,180.00
4,614
1,500.00
1,228.00
1,500.00
1,134.00
1,180.00
4,980
1,642.00
1,370.00
1,636.00
1,270.00
1,320.00
4,982
1,644.00
1,370.00
1,636.00
1,270.00
1,320.00
5,304
1,770.00
1,496.00
1,756.00
1,390.00
1,444.00
5,306
1,770.00
1,496.00
1,756.00
1,390.00
1,444.00
5,472
1,834.00
1,562.00
1,818.00
1,452.00
1,506.00
5,474
1,836.00
1,562.00
1,818.00
1,452.00
1,508.00
5,796
1,962.00
1,688.00
1,938.00
1,572.00
1,630.00
5,798
1,962.00
1,688.00
1,938.00
1,572.00
1,630.00
5,826
1,972.00
1,700.00
1,948.00
1,584.00
1,642.00
5,828
1,974.00
1,700.00
1,950.00
1,584.00
1,642.00
6,222
2,128.00
1,854.00
2,096.00
1,730.00
1,792.00
6,922
2,456.00
2,128.00
2,354.00
1,988.00
2,058.00
Monthly withholding amounts
Monthly earnings$
Scale 1No tax-free threshold$
Scale 2With tax-free threshold$
Scale 3Foreign resident$
Scale 5Full Medicare exemption$
Scale 6Half Medicare exemption$
377.00
74.00
0.00
121.00
0.00
0.00
381.33
74.00
0.00
126.00
0.00
0.00
502.67
104.00
0.00
165.00
0.00
0.00
507.00
104.00
0.00
165.00
0.00
0.00
1,079.00
238.00
0.00
351.00
0.00
0.00
1,083.33
238.00
0.00
351.00
0.00
0.00
1,551.33
347.00
0.00
503.00
0.00
0.00
1,555.67
351.00
0.00
507.00
0.00
0.00
1,603.33
360.00
9.00
520.00
9.00
9.00
1,607.67
360.00
9.00
524.00
9.00
9.00
1,893.67
425.00
65.00
615.00
65.00
65.00
1,898.00
425.00
65.00
615.00
65.00
65.00
2,227.33
498.00
160.00
724.00
130.00
130.00
2,231.67
498.00
160.00
724.00
130.00
130.00
2,370.33
546.00
204.00
771.00
156.00
156.00
2,374.67
546.00
204.00
771.00
156.00
156.00
3,120.00
806.00
360.00
1,014.00
299.00
299.00
3,124.33
810.00
360.00
1,014.00
299.00
299.00
3,198.00
836.00
377.00
1,040.00
312.00
312.00
3,202.33
836.00
377.00
1,040.00
312.00
312.00
3,744.00
1,023.00
498.00
1,218.00
420.00
451.00
3,748.33
1,027.00
498.00
1,218.00
425.00
451.00
3,999.67
1,114.00
585.00
1,300.00
507.00
546.00
4,004.00
1,114.00
585.00
1,300.00
507.00
546.00
4,034.33
1,127.00
598.00
1,313.00
516.00
559.00
4,038.67
1,127.00
598.00
1,313.00
520.00
559.00
5,551.00
1,647.00
1,127.00
1,803.00
1,014.00
1,070.00
5,555.33
1,651.00
1,127.00
1,807.00
1,014.00
1,070.00
7,990.67
2,492.00
1,967.00
2,596.00
1,807.00
1,885.00
7,995.00
2,492.00
1,967.00
2,600.00
1,807.00
1,889.00
8,476.00
2,656.00
2,132.00
2,756.00
1,963.00
2,050.00
8,480.33
2,661.00
2,136.00
2,756.00
1,967.00
2,050.00
9,182.33
2,934.00
2,379.00
2,986.00
2,193.00
2,284.00
9,186.67
2,934.00
2,379.00
2,986.00
2,197.00
2,288.00
9,992.67
3,250.00
2,656.00
3,246.00
2,457.00
2,557.00
9,997.00
3,250.00
2,661.00
3,250.00
2,457.00
2,557.00
10,790.00
3,558.00
2,968.00
3,545.00
2,752.00
2,860.00
10,794.33
3,562.00
2,968.00
3,545.00
2,752.00
2,860.00
11,492.00
3,835.00
3,241.00
3,805.00
3,012.00
3,129.00
11,496.33
3,835.00
3,241.00
3,805.00
3,012.00
3,129.00
11,856.00
3,974.00
3,384.00
3,939.00
3,146.00
3,263.00
11,860.33
3,978.00
3,384.00
3,939.00
3,146.00
3,267.00
12,558.00
4,251.00
3,657.00
4,199.00
3,406.00
3,532.00
12,562.33
4,251.00
3,657.00
4,199.00
3,406.00
3,532.00
12,623.00
4,273.00
3,683.00
4,221.00
3,432.00
3,558.00
12,627.33
4,277.00
3,683.00
4,225.00
3,432.00
3,558.00
13,481.00
4,611.00
4,017.00
4,541.00
3,748.00
3,883.00
14,997.67
5,321.00
4,611.00
5,100.00
4,307.00
4,459.00
Sample data – Scale 2
Weekly Medicare levy adjustment
Adjustment amount, weekly
Weekly earnings$
Spouse only$
1child$
2children$
3children$
4children$
5children$
437
0.00
0.00
0.00
0.00
0.00
0.00
438
0.00
0.00
0.00
0.00
0.00
0.00
492
5.00
5.00
5.00
5.00
5.00
5.00
493
6.00
6.00
6.00
6.00
6.00
6.00
547
11.00
11.00
11.00
11.00
11.00
11.00
548
11.00
11.00
11.00
11.00
11.00
11.00
575
12.00
12.00
12.00
12.00
12.00
12.00
576
12.00
12.00
12.00
12.00
12.00
12.00
603
12.00
12.00
12.00
12.00
12.00
12.00
604
12.00
12.00
12.00
12.00
12.00
12.00
631
13.00
13.00
13.00
13.00
13.00
13.00
632
13.00
13.00
13.00
13.00
13.00
13.00
659
13.00
13.00
13.00
13.00
13.00
13.00
660
13.00
13.00
13.00
13.00
13.00
13.00
687
14.00
14.00
14.00
14.00
14.00
14.00
688
14.00
14.00
14.00
14.00
14.00
14.00
715
14.00
14.00
14.00
14.00
14.00
14.00
716
14.00
14.00
14.00
14.00
14.00
14.00
743
14.00
15.00
15.00
15.00
15.00
15.00
744
14.00
15.00
15.00
15.00
15.00
15.00
771
12.00
15.00
15.00
15.00
15.00
15.00
772
12.00
15.00
15.00
15.00
15.00
15.00
799
10.00
16.00
16.00
16.00
16.00
16.00
800
10.00
16.00
16.00
16.00
16.00
16.00
827
8.00
15.00
17.00
17.00
17.00
17.00
828
8.00
14.00
17.00
17.00
17.00
17.00
855
6.00
12.00
17.00
17.00
17.00
17.00
856
5.00
12.00
17.00
17.00
17.00
17.00
883
3.00
10.00
17.00
18.00
18.00
18.00
884
3.00
10.00
17.00
18.00
18.00
18.00
911
1.00
8.00
15.00
18.00
18.00
18.00
912
1.00
8.00
15.00
18.00
18.00
18.00
939
0.00
6.00
12.00
19.00
19.00
19.00
940
0.00
6.00
12.00
19.00
19.00
19.00
967
0.00
3.00
10.00
17.00
19.00
19.00
968
0.00
3.00
10.00
17.00
19.00
19.00
995
0.00
1.00
8.00
15.00
20.00
20.00
996
0.00
1.00
8.00
15.00
20.00
20.00
1,023
0.00
0.00
6.00
12.00
19.00
20.00
1,024
0.00
0.00
6.00
12.00
19.00
20.00
1,051
0.00
0.00
3.00
10.00
17.00
21.00
1,052
0.00
0.00
3.00
10.00
17.00
21.00
1,079
0.00
0.00
1.00
8.00
15.00
22.00
1,080
0.00
0.00
1.00
8.00
15.00
21.00
1,263
0.00
0.00
0.00
0.00
0.00
7.00
1,264
0.00
0.00
0.00
0.00
0.00
7.00
1,348
0.00
0.00
0.00
0.00
0.00
0.00
1,349
0.00
0.00
0.00
0.00
0.00
0.00
Fortnightly Medicare levy adjustment
Adjustment amount, fortnightly
Fortnightly earnings$
Spouse only$
1child$
2children$
3children$
4children$
5children$
874
0.00
0.00
0.00
0.00
0.00
0.00
876
0.00
0.00
0.00
0.00
0.00
0.00
984
10.00
10.00
10.00
10.00
10.00
10.00
986
12.00
12.00
12.00
12.00
12.00
12.00
1,094
22.00
22.00
22.00
22.00
22.00
22.00
1,096
22.00
22.00
22.00
22.00
22.00
22.00
1,150
24.00
24.00
24.00
24.00
24.00
24.00
1,152
24.00
24.00
24.00
24.00
24.00
24.00
1,206
24.00
24.00
24.00
24.00
24.00
24.00
1,208
24.00
24.00
24.00
24.00
24.00
24.00
1,262
26.00
26.00
26.00
26.00
26.00
26.00
1,264
26.00
26.00
26.00
26.00
26.00
26.00
1,318
26.00
26.00
26.00
26.00
26.00
26.00
1,320
26.00
26.00
26.00
26.00
26.00
26.00
1,374
28.00
28.00
28.00
28.00
28.00
28.00
1,376
28.00
28.00
28.00
28.00
28.00
28.00
1,430
28.00
28.00
28.00
28.00
28.00
28.00
1,432
28.00
28.00
28.00
28.00
28.00
28.00
1,486
28.00
30.00
30.00
30.00
30.00
30.00
1,488
28.00
30.00
30.00
30.00
30.00
30.00
1,542
24.00
30.00
30.00
30.00
30.00
30.00
1,544
24.00
30.00
30.00
30.00
30.00
30.00
1,598
20.00
32.00
32.00
32.00
32.00
32.00
1,600
20.00
32.00
32.00
32.00
32.00
32.00
1,654
16.00
30.00
34.00
34.00
34.00
34.00
1,656
16.00
28.00
34.00
34.00
34.00
34.00
1,710
12.00
24.00
34.00
34.00
34.00
34.00
1,712
10.00
24.00
34.00
34.00
34.00
34.00
1,766
6.00
20.00
34.00
36.00
36.00
36.00
1,768
6.00
20.00
34.00
36.00
36.00
36.00
1,822
2.00
16.00
30.00
36.00
36.00
36.00
1,824
2.00
16.00
30.00
36.00
36.00
36.00
1,878
0.00
12.00
24.00
38.00
38.00
38.00
1,880
0.00
12.00
24.00
38.00
38.00
38.00
1,934
0.00
6.00
20.00
34.00
38.00
38.00
1,936
0.00
6.00
20.00
34.00
38.00
38.00
1,990
0.00
2.00
16.00
30.00
40.00
40.00
1,992
0.00
2.00
16.00
30.00
40.00
40.00
2,046
0.00
0.00
12.00
24.00
38.00
40.00
2,048
0.00
0.00
12.00
24.00
38.00
40.00
2,102
0.00
0.00
6.00
20.00
34.00
42.00
2,104
0.00
0.00
6.00
20.00
34.00
42.00
2,158
0.00
0.00
2.00
16.00
30.00
44.00
2,160
0.00
0.00
2.00
16.00
30.00
42.00
2,526
0.00
0.00
0.00
0.00
0.00
14.00
2,528
0.00
0.00
0.00
0.00
0.00
14.00
2,696
0.00
0.00
0.00
0.00
0.00
0.00
2,698
0.00
0.00
0.00
0.00
0.00
0.00
Monthly Medicare levy adjustment
Adjustment amount, monthly
Monthly earnings$
Spouse only$
1child $
2children$
3children$
4children$
5children$
1,893.67
0.00
0.00
0.00
0.00
0.00
0.00
1,898.00
0.00
0.00
0.00
0.00
0.00
0.00
2,132.00
22.00
22.00
22.00
22.00
22.00
22.00
2,136.33
26.00
26.00
26.00
26.00
26.00
26.00
2,370.33
48.00
48.00
48.00
48.00
48.00
48.00
2,374.67
48.00
48.00
48.00
48.00
48.00
48.00
2,491.67
52.00
52.00
52.00
52.00
52.00
52.00
2,496.00
52.00
52.00
52.00
52.00
52.00
52.00
2,613.00
52.00
52.00
52.00
52.00
52.00
52.00
2,617.33
52.00
52.00
52.00
52.00
52.00
52.00
2,734.33
56.00
56.00
56.00
56.00
56.00
56.00
2,738.67
56.00
56.00
56.00
56.00
56.00
56.00
2,855.67
56.00
56.00
56.00
56.00
56.00
56.00
2,860.00
56.00
56.00
56.00
56.00
56.00
56.00
2,977.00
61.00
61.00
61.00
61.00
61.00
61.00
2,981.33
61.00
61.00
61.00
61.00
61.00
61.00
3,098.33
61.00
61.00
61.00
61.00
61.00
61.00
3,102.67
61.00
61.00
61.00
61.00
61.00
61.00
3,219.67
61.00
65.00
65.00
65.00
65.00
65.00
3,224.00
61.00
65.00
65.00
65.00
65.00
65.00
3,341.00
52.00
65.00
65.00
65.00
65.00
65.00
3,345.33
52.00
65.00
65.00
65.00
65.00
65.00
3,462.33
43.00
69.00
69.00
69.00
69.00
69.00
3,466.67
43.00
69.00
69.00
69.00
69.00
69.00
3,583.67
35.00
65.00
74.00
74.00
74.00
74.00
3,588.00
35.00
61.00
74.00
74.00
74.00
74.00
3,705.00
26.00
52.00
74.00
74.00
74.00
74.00
3,709.33
22.00
52.00
74.00
74.00
74.00
74.00
3,826.33
13.00
43.00
74.00
78.00
78.00
78.00
3,830.67
13.00
43.00
74.00
78.00
78.00
78.00
3,947.67
4.00
35.00
65.00
78.00
78.00
78.00
3,952.00
4.00
35.00
65.00
78.00
78.00
78.00
4,069.00
0.00
26.00
52.00
82.00
82.00
82.00
4,073.33
0.00
26.00
52.00
82.00
82.00
82.00
4,190.33
0.00
13.00
43.00
74.00
82.00
82.00
4,194.67
0.00
13.00
43.00
74.00
82.00
82.00
4,311.67
0.00
4.00
35.00
65.00
87.00
87.00
4,316.00
0.00
4.00
35.00
65.00
87.00
87.00
4,433.00
0.00
0.00
26.00
52.00
82.00
87.00
4,437.33
0.00
0.00
26.00
52.00
82.00
87.00
4,554.33
0.00
0.00
13.00
43.00
74.00
91.00
4,558.67
0.00
0.00
13.00
43.00
74.00
91.00
4,675.67
0.00
0.00
4.00
35.00
65.00
95.00
4,680.00
0.00
0.00
4.00
35.00
65.00
91.00
5,473.00
0.00
0.00
0.00
0.00
0.00
30.00
5,477.33
0.00
0.00
0.00
0.00
0.00
30.00
5,841.33
0.00
0.00
0.00
0.00
0.00
0.00
5,845.67
0.00
0.00
0.00
0.00
0.00
0.00
Sample data – scale 6
Weekly Medicare half-levy adjustment
Adjustment amount, weekly half-levy
Weeklyearnings$
1child$
2children$
3children$
4children$
5children$
738
0.00
0.00
0.00
0.00
0.00
739
0.00
0.00
0.00
0.00
0.00
830
5.00
5.00
5.00
5.00
5.00
831
5.00
5.00
5.00
5.00
5.00
923
9.00
9.00
9.00
9.00
9.00
924
3.00
7.00
9.00
9.00
9.00
940
3.00
6.00
9.00
9.00
9.00
941
3.00
6.00
9.00
9.00
9.00
957
2.00
5.00
9.00
10.00
10.00
958
2.00
5.00
9.00
10.00
10.00
974
1.00
5.00
8.00
10.00
10.00
975
1.00
5.00
8.00
10.00
10.00
991
1.00
4.00
8.00
10.00
10.00
992
1.00
4.00
7.00
10.00
10.00
1,008
0.00
3.00
7.00
10.00
10.00
1,009
0.00
3.00
7.00
10.00
10.00
1,025
0.00
3.00
6.00
10.00
10.00
1,026
0.00
3.00
6.00
10.00
10.00
1,042
0.00
2.00
5.00
9.00
10.00
1,043
0.00
2.00
5.00
9.00
10.00
1,059
0.00
1.00
5.00
8.00
11.00
1,060
0.00
1.00
5.00
8.00
11.00
1,076
0.00
1.00
4.00
8.00
11.00
1,077
0.00
1.00
4.00
7.00
11.00
1,093
0.00
0.00
3.00
7.00
10.00
1,094
0.00
0.00
3.00
7.00
10.00
1,110
0.00
0.00
3.00
6.00
10.00
1,111
0.00
0.00
3.00
6.00
10.00
1,127
0.00
0.00
2.00
5.00
9.00
1,128
0.00
0.00
2.00
5.00
9.00
1,144
0.00
0.00
1.00
5.00
8.00
1,145
0.00
0.00
1.00
5.00
8.00
1,161
0.00
0.00
1.00
4.00
8.00
1,162
0.00
0.00
1.00
4.00
7.00
1,178
0.00
0.00
0.00
3.00
7.00
1,179
0.00
0.00
0.00
3.00
7.00
1,195
0.00
0.00
0.00
3.00
6.00
1,196
0.00
0.00
0.00
3.00
6.00
1,212
0.00
0.00
0.00
2.00
5.00
1,213
0.00
0.00
0.00
2.00
5.00
1,229
0.00
0.00
0.00
1.00
5.00
1,230
0.00
0.00
0.00
1.00
5.00
1,246
0.00
0.00
0.00
1.00
4.00
1,247
0.00
0.00
0.00
1.00
4.00
1,263
0.00
0.00
0.00
0.00
3.00
1,264
0.00
0.00
0.00
0.00
3.00
1,348
0.00
0.00
0.00
0.00
0.00
1,349
0.00
0.00
0.00
0.00
0.00
Fortnightly Medicare half-levy adjustment
Adjustment amount, fortnightly half-levy
Fortnightly earnings$
1child$
2children$
3children$
4children$
5children$
1,476
0.00
0.00
0.00
0.00
0.00
1,478
0.00
0.00
0.00
0.00
0.00
1,660
10.00
10.00
10.00
10.00
10.00
1,662
10.00
10.00
10.00
10.00
10.00
1,846
18.00
18.00
18.00
18.00
18.00
1,848
6.00
14.00
18.00
18.00
18.00
1,880
6.00
12.00
18.00
18.00
18.00
1,882
6.00
12.00
18.00
18.00
18.00
1,914
4.00
10.00
18.00
20.00
20.00
1,916
4.00
10.00
18.00
20.00
20.00
1,948
2.00
10.00
16.00
20.00
20.00
1,950
2.00
10.00
16.00
20.00
20.00
1,982
2.00
8.00
16.00
20.00
20.00
1,984
2.00
8.00
14.00
20.00
20.00
2,016
0.00
6.00
14.00
20.00
20.00
2,018
0.00
6.00
14.00
20.00
20.00
2,050
0.00
6.00
12.00
20.00
20.00
2,052
0.00
6.00
12.00
20.00
20.00
2,084
0.00
4.00
10.00
18.00
20.00
2,086
0.00
4.00
10.00
18.00
20.00
2,118
0.00
2.00
10.00
16.00
22.00
2,120
0.00
2.00
10.00
16.00
22.00
2,152
0.00
2.00
8.00
16.00
22.00
2,154
0.00
2.00
8.00
14.00
22.00
2,186
0.00
0.00
6.00
14.00
20.00
2,188
0.00
0.00
6.00
14.00
20.00
2,220
0.00
0.00
6.00
12.00
20.00
2,222
0.00
0.00
6.00
12.00
20.00
2,254
0.00
0.00
4.00
10.00
18.00
2,256
0.00
0.00
4.00
10.00
18.00
2,288
0.00
0.00
2.00
10.00
16.00
2,290
0.00
0.00
2.00
10.00
16.00
2,322
0.00
0.00
2.00
8.00
16.00
2,324
0.00
0.00
2.00
8.00
14.00
2,356
0.00
0.00
0.00
6.00
14.00
2,358
0.00
0.00
0.00
6.00
14.00
2,390
0.00
0.00
0.00
6.00
12.00
2,392
0.00
0.00
0.00
6.00
12.00
2,424
0.00
0.00
0.00
4.00
10.00
2,426
0.00
0.00
0.00
4.00
10.00
2,458
0.00
0.00
0.00
2.00
10.00
2,460
0.00
0.00
0.00
2.00
10.00
2,492
0.00
0.00
0.00
2.00
8.00
2,494
0.00
0.00
0.00
2.00
8.00
2,526
0.00
0.00
0.00
0.00
6.00
2,528
0.00
0.00
0.00
0.00
6.00
2,696
0.00
0.00
0.00
0.00
0.00
2,698
0.00
0.00
0.00
0.00
0.00
Monthly Medicare half-levy adjustment
Adjustment amount, monthly half-levy
Monthlyearnings$
1child$
2children$
3children$
4children$
5children$
3,198.00
0.00
0.00
0.00
0.00
0.00
3,202.33
0.00
0.00
0.00
0.00
0.00
3,596.67
22.00
22.00
22.00
22.00
22.00
3,601.00
22.00
22.00
22.00
22.00
22.00
3,999.67
39.00
39.00
39.00
39.00
39.00
4,004.00
13.00
30.00
39.00
39.00
39.00
4,073.33
13.00
26.00
39.00
39.00
39.00
4,077.67
13.00
26.00
39.00
39.00
39.00
4,147.00
9.00
22.00
39.00
43.00
43.00
4,151.33
9.00
22.00
39.00
43.00
43.00
4,220.67
4.00
22.00
35.00
43.00
43.00
4,225.00
4.00
22.00
35.00
43.00
43.00
4,294.33
4.00
17.00
35.00
43.00
43.00
4,298.67
4.00
17.00
30.00
43.00
43.00
4,368.00
0.00
13.00
30.00
43.00
43.00
4,372.33
0.00
13.00
30.00
43.00
43.00
4,441.67
0.00
13.00
26.00
43.00
43.00
4,446.00
0.00
13.00
26.00
43.00
43.00
4,515.33
0.00
9.00
22.00
39.00
43.00
4,519.67
0.00
9.00
22.00
39.00
43.00
4,589.00
0.00
4.00
22.00
35.00
48.00
4,593.33
0.00
4.00
22.00
35.00
48.00
4,662.67
0.00
4.00
17.00
35.00
48.00
4,667.00
0.00
4.00
17.00
30.00
48.00
4,736.33
0.00
0.00
13.00
30.00
43.00
4,740.67
0.00
0.00
13.00
30.00
43.00
4,810.00
0.00
0.00
13.00
26.00
43.00
4,814.33
0.00
0.00
13.00
26.00
43.00
4,883.67
0.00
0.00
9.00
22.00
39.00
4,888.00
0.00
0.00
9.00
22.00
39.00
4,957.33
0.00
0.00
4.00
22.00
35.00
4,961.67
0.00
0.00
4.00
22.00
35.00
5,031.00
0.00
0.00
4.00
17.00
35.00
5,035.33
0.00
0.00
4.00
17.00
30.00
5,104.67
0.00
0.00
0.00
13.00
30.00
5,109.00
0.00
0.00
0.00
13.00
30.00
5,178.33
0.00
0.00
0.00
13.00
26.00
5,182.67
0.00
0.00
0.00
13.00
26.00
5,252.00
0.00
0.00
0.00
9.00
22.00
5,256.33
0.00
0.00
0.00
9.00
22.00
5,325.67
0.00
0.00
0.00
4.00
22.00
5,330.00
0.00
0.00
0.00
4.00
22.00
5,399.33
0.00
0.00
0.00
4.00
17.00
5,403.67
0.00
0.00
0.00
4.00
17.00
5,473.00
0.00
0.00
0.00
0.00
13.00
5,477.33
0.00
0.00
0.00
0.00
13.00
5,841.33
0.00
0.00
0.00
0.00
0.00
5,845.67
0.00
0.00
0.00
0.00
0.00
Other statements of formulas
Statements of formulas for other classes of payees are also available. These include:
■ Statement of formulas for calculating study and training support loans components
■ Tax table for individuals employed in the horticultural or shearing industry
■ Tax table for actors, variety artists and other entertainers
■ Tax table for seniors and pensioners
■ Tax table for working holiday makers.
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 an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.
If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.
Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for study and training support loans.
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.
■ 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, VSL, FS, SSL or TSL debt, or changes to them
■ entitlement to a seniors and pensioners tax offset.
When your employee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from an employee, it will replace the previous one.
An employee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.
When your employee has a study and training support loan debt
If your employee has a HELP, VSL, FS, SSL or TSL debt, you may need to withhold additional amounts from their payments. Your employee will need to notify you of this on their Tax file number declaration or Withholding declaration.
To calculate additional withholding amounts for:
■ HELP, VSL, FS, SSL or TSL debts, refer to either
Study and training support loans weekly tax table
Study and training support loans fortnightly tax table
Study and training support loans monthly tax table.
■ Statement of formulas, refer to
Schedule 8 – Statement of formulas for calculating study and training support loans components
Employees who are entitled to a reduction of Medicare levy or do not have to pay the Medicare levy because of low family income, will not have to make a compulsory HELP, VSL, FS, SSL or TSL repayment for that year. The exemption from making a compulsory study and training support loans repayment may be claimed on the Medicare levy variation declaration.
Allowances
Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.
For more information on when to withhold and report on allowances, refer to Withholding for allowances.
If you pay leave loading as a lump sum, use Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.
If you pay leave loading on a pro-rata basis, add the leave loading payment to earnings for that period to calculate withholding.
Holiday pay, long service leave and employment termination payments
Employees who continue working for you
You must include holiday pay (including any leave loading) and long service leave payments as part of normal earnings, except when they are paid on termination of employment.
For more information, see Withholding from leave payments for continuing employees.
Employees who stop working for you
This schedule does not cover any lump sum payments made to an employee who stops working for you.
If an employee has unused annual leave, leave loading or long service leave, refer to Tax table for unused leave payments on termination of employment.
Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments.
Do not withhold any amount for study and training support loans debt from lump sum termination payments.
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.