Taxation Administration Act Withholding Schedules October 2016 
Reference: OPS 2016/6
Document type: Legislative Instrument
Enabling act: Taxation Administration Act 1953 Section 15-25 of Schedule 1
Date of issue: 23 September 2016
Signatory: Matthew Bambrick Acting Deputy Commissioner of Taxation
Registration number: F2016L01506
Registration date: 27 September 2016
This legislative instrument replaces and repeals F2016L01380 - registered on 2 September 2016

I, Matthew Bambrick, Acting Deputy Commissioner of Taxation, make this determination under section 15-25 of Schedule 1 to the Taxation Administration Act 1953 . | 4. Scale 1 and 2 apply whether or not the employee is entitled to any leave loading. | 5. Tax offsets may be allowed only where scales 2, 5 or 6 are applied.

1. Name of instrument: This determination is the Taxation Administration Act Withholding Schedules October 2016 . | 2. Commencement: This instrument commences on the day after registration. | 3. Purpose: (a) 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 to the Taxation Administration Act 1953 . (b) The withholding schedules in this instrument are made for the purposes of collecting income tax, Medicare levy, Temporary Budget Repair levy and amounts of liabilities to the Commonwealth under the Higher Education Support Act 2003 , the Trade Support Loans Act 2014 , the Social Security Act 1991 and the Student Assistance Act 1973 . (c) The withholding schedules in this instrument replace eight schedules included in Legislative Instrument F2016L01380 which was registered on 2 September 2016. Legislative Instrument F2016L01380 is repealed on commencement of this determination. | 4. Withholding schedules: Each of the withholding schedules listed in the following table applies to payments made on or after 1 October 2016: Schedule number Quick code number Title 1 50006 Statement of formulas for calculating amounts to be withheld 3 50015 Tax table for actors, variety artists and other entertainers 5 50017 Tax table for back payments, commissions, bonuses and similar payments 6 50018 Tax table for annuities 7 50019 Tax table for unused leave payments on termination of employment 8 50005 Statement of formulas for calculating Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) and Student Financial Supplement Scheme (SFSS) components 9 50020 Tax table for seniors and pensioners 13 50021 Tax table for superannuation income streams Each of the withholding schedules listed in the following table, is withdrawn from the date of commencement of this instrument Schedule number Quick code number Title 1 45521 Statement of formulas for calculating amounts to be withheld 3 45523 Tax table for actors, variety artists and other entertainers 5 45524 Tax table for back payments, commissions, bonuses and similar payments 6 45525 Tax table for annuities 7 45606 Tax table for unused leave payments on termination of employment 8 45526 Statement of formulas for calculating Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) and Student Financial Supplement Scheme (SFSS) components 9 45527 Tax table for seniors and pensioners 13 45531 Tax table for superannuation income streams For payments made on or after 1 October 2016 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. Using this schedule 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: • a tax withheld calculator , and • tax tables which are based on the formulas in this schedule. • a tax withheld calculator , and • tax tables which are based on the formulas in this schedule. 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). • 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). Get it done You can download a printable version of Statement of formulas for calculating amounts to be withheld (NAT 1004, 586KB) 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 Weekly earnings (x) less than $ a b 60 0.1900 0.1900 361 0.2332 2.6045 932 0.3477 44.0006 1,323 0.3450 41.4841 3,111 0.3900 101.0225 3,111 & over 0.4900 412.1764 Where the employee claimed the tax-free threshold in Tax file number declaration - Scale 2 Weekly earnings (x) less than $ a b 355 - - 410 0.1900 67.4635 512 0.2900 108.4923 711 0.2100 67.4646 1,282 0.3477 165.4435 1,673 0.3450 161.9819 3,461 0.3900 237.2704 3,461 & over 0.4900 583.4242 Foreign residents - Scale 3 Weekly earnings (x) less than $ a b 1,673 0.3250 0.3250 3,461 0.3700 75.2885 3,461 & over 0.4700 421.4423 Where a tax file number (TFN) was not provided by employee - Scale 4 Earnings Tax rate Resident $1 & over 0.4900 Foreign resident $1 & over 0.4700 Where the employee claimed the FULL exemption from Medicare levy in Medicare levy variation declaration - Scale 5 Weekly earnings (x) less than $ a b 355 - - 711 0.1900 67.4635 1,282 0.3277 165.4423 1,673 0.3250 161.9808 3,461 0.3700 237.2692 3,461 & over 0.4700 583.4231 Where the employee claimed the HALF exemption from Medicare levy in Medicare levy variation declaration -Scale 6 Weekly earnings (x) less than $ a b 355 - - 692 0.1900 67.4635 711 0.2400 102.0798 865 0.3777 200.0587 1,282 0.3377 165.4425 1,673 0.3350 161.9810 3,461 0.3800 237.2694 3,461 & over 0.4800 583.4233 Notes 1. If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings. | 2. Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.: 3. 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. | 6. All scales include the Temporary Budget Repair Levy.: 7. Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only. 8. For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $21,335 ($410 per week) or less. Where the taxable income exceeds $21,335 but is less than $26,668 ($512 per week), the levy is shaded in at the rate of 10% of the excess over $21,335. Where a person's taxable income is $26,668 ($512 per week) or more, Medicare is levied at the rate of 2% of total taxable income. 9. 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 Scale 2 Scale 6 Weekly earnings threshold 410 692 Weekly earnings shade-in threshold 512 865 Medicare levy family threshold 36,001 36,001 Weekly family threshold divisor 52 52 Additional child 3,306 3,306 Shading out point multiplier 0.1000 0.0500 Shading out point divisor 0.0800 0.0400 Weekly levy adjustment factor 410.2900 692.3300 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. • 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. Find out more • Tax file number (TFN) declarations • Withholding declarations • Allowances • Holiday pay, long service leave and employment termination payments • Claiming tax offsets • Medicare levy adjustment • Tax file number (TFN) declarations • Withholding declarations • Allowances • Holiday pay, long service leave and employment termination payments • Claiming tax offsets • Medicare levy adjustment Using a formula The formulas comprise linear equations of the form y = ax - b, where: • y is the weekly withholding amount expressed in dollars • x is the number of whole dollars in the weekly earnings plus 99 cents • y is the weekly withholding amount expressed in dollars • 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 adjustments. 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. Rounding of withholding amounts 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. Weekly earnings $ Additional withholding $ 725 to 1,524 3 1,525 to 3,449 4 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. Fortnightly earnings $ Additional withholding $ 1,400 to 3,049 12 3,050 to 6,799 17 6,800 and over 42 Working out the weekly earnings The method of working out the weekly earnings (x) for the purpose of applying the formulas is as follows: Example Weekly income $467.59 Add allowance subject to withholding $ 9.50 Total earnings (ignore cents) $477.00 Add 99 cents $0.99 Weekly earnings $477.99 Example Weekly income $467.59 Add allowance subject to withholding $ 9.50 Total earnings (ignore cents) $477.00 Add 99 cents $0.99 Weekly earnings $477.99 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. • 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. • 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. • 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 (NAT 0929), may be entitled to a Medicare levy adjustment if they have weekly earnings of one of the following: • $410 or more where scale 2 is applied • $692 or more where scale 6 is applied. • $410 or more where scale 2 is applied • $692 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: • $512 or more where scale 2 is applied • $865 or more where scale 6 is applied. • $512 or more where scale 2 is applied • $865 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 = $692.33 (36,001 ÷ 52) (rounded to the nearest cent). - WFT = $692.33 (36,001 ÷ 52) (rounded to the nearest cent). Where an employee has answered yes to question 12 on the Medicare levy variation declaration, you need to: a. multiply the number of children shown at question 12 by 3,306 and add the result to 36,001 b. divide the result of (a) by 52 c. round the result of (b) to the nearest cent. Example If the employee has shown two dependent children at question 12: WFT = ([3,306 × 2] + 36,001) ÷ 52 WFT = 819.4808 or $819.48 (rounded to the nearest cent) a. multiply the number of children shown at question 12 by 3,306 and add the result to 36,001 b. divide the result of (a) by 52 c. round the result of (b) to the nearest cent. Example If the employee has shown two dependent children at question 12: WFT = ([3,306 × 2] + 36,001) ÷ 52 WFT = 819.4808 or $819.48 (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. Example Employee has shown six dependent children at question 12 and scale 2 is applied: WFT = ([3,306 × 6] + 36,001) ÷ 52 WFT = 1,073.7885 or $1,073.79 (rounded to the nearest cent) SOP = (WFT × 0.1) ÷ 0.0800 SOP = ($1,073.79 × 0.1) ÷ 0.0800 SOP = 1,342.2375 or $1,342 (ignoring cents) Example Employee has shown six dependent children at question 12 and scale 2 is applied: WFT = ([3,306 × 6] + 36,001) ÷ 52 WFT = 1,073.7885 or $1,073.79 (rounded to the nearest cent) SOP = (WFT × 0.1) ÷ 0.0800 SOP = ($1,073.79 × 0.1) ÷ 0.0800 SOP = 1,342.2375 or $1,342 (ignoring cents) Weekly Levy Adjustment (WLA) Where scale 2 is applied Where weekly earnings are $410 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: 1. If x is less than $512, WLA = (x - 410.29) × 0.1 2. If x is $512 or more but less than WFT, WLA = x × 0.0200 3. If x is equal to or greater than WFT and less than the SOP, WLA = (WFT × 0.0200) - ([ x - WFT] × 0.0800) 1. If x is less than $512, WLA = (x - 410.29) × 0.1 2. If x is $512 or more but less than WFT, WLA = x × 0.0200 3. 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 $692 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: 1. If x is less than $865, WLA = (x - 692.33) × 0.05 2. If x is $865 or more but less than WFT, WLA = x × 0.0100 3. If x is equal to or greater than WFT and less than the SOP, WLA = (WFT 0.0100) - ([x - WFT] × 0.0400) 1. If x is less than $865, WLA = (x - 692.33) × 0.05 2. If x is $865 or more but less than WFT, WLA = x × 0.0100 3. 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. Examples Example 1 Employee's weekly earnings are $465.33 and scale 2 is applied. x = 465.99 As x is less than $512, WLA is calculated using formula (1): WLA = (465.99 - 410.29) × 0.1 = 5.5700 or $6.00 (rounded to the nearest dollar). Example 2 Employee's weekly earnings are $869.47 and the number of children claimed at question 12 is three. Scale 6 is applied. x = 869.99 WFT = ([3,306 × 3] + 36,001) ÷ 52 = 883.0577 or $883.06 (rounded to the nearest cent) As x is greater than $865 and less than WFT, WLA is calculated using formula (2): WLA = 869.99 × 0.01 = 8.6999 or $9.00 (rounded to the nearest dollar). Example 3 Employee's weekly earnings are $982.29 and the number of children claimed at question 12 is four. Scale 2 is applied. x = 982.99 WFT = ([3,306 × 4] + 36,001) ÷ 52 = 946.6346 or $946.63 (rounded to the nearest cent). SOP = (946.63 × 0.1) ÷ 0.08 = 1,183.2875 or $1,183 (ignoring cents). As x is greater than WFT and less than SOP, WLA is calculated using formula (3): WLA = (946.63 × 0.020) - ([982.99 - 946.63] × 0.0800) = 16.0238 or $16.00 (rounded to the nearest dollar) Example 1 Employee's weekly earnings are $465.33 and scale 2 is applied. x = 465.99 As x is less than $512, WLA is calculated using formula (1): WLA = (465.99 - 410.29) × 0.1 = 5.5700 or $6.00 (rounded to the nearest dollar). Example 2 Employee's weekly earnings are $869.47 and the number of children claimed at question 12 is three. Scale 6 is applied. x = 869.99 WFT = ([3,306 × 3] + 36,001) ÷ 52 = 883.0577 or $883.06 (rounded to the nearest cent) As x is greater than $865 and less than WFT, WLA is calculated using formula (2): WLA = 869.99 × 0.01 = 8.6999 or $9.00 (rounded to the nearest dollar). Example 3 Employee's weekly earnings are $982.29 and the number of children claimed at question 12 is four. Scale 2 is applied. x = 982.99 WFT = ([3,306 × 4] + 36,001) ÷ 52 = 946.6346 or $946.63 (rounded to the nearest cent). SOP = (946.63 × 0.1) ÷ 0.08 = 1,183.2875 or $1,183 (ignoring cents). As x is greater than WFT and less than SOP, WLA is calculated using formula (3): WLA = (946.63 × 0.020) - ([982.99 - 946.63] × 0.0800) = 16.0238 or $16.00 (rounded to the nearest dollar) Fortnightly levy adjustment Multiply rounded weekly levy adjustment by two. Example Employee'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 = $797.76 x = 797.99 WFT = ([3,306 × 1] +36,001) ÷ 52 = 755.9038 or $755.90 (rounded to the nearest cent). SOP = (755.90 × 0.1) ÷ 0.08 = 944.8750 or $944 (ignoring cents). As x is greater than WFT and less than SOP, formula (3) is used: WLA = (755.90 × 0.020) - ([797.99 - 755.90] × 0.0800) = 11.7508 or $12.00 (rounded to the nearest dollar). The fortnightly levy adjustment is therefore $24.00 ($12.00 x 2) Example Employee'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 = $797.76 x = 797.99 WFT = ([3,306 × 1] +36,001) ÷ 52 = 755.9038 or $755.90 (rounded to the nearest cent). SOP = (755.90 × 0.1) ÷ 0.08 = 944.8750 or $944 (ignoring cents). As x is greater than WFT and less than SOP, formula (3) is used: WLA = (755.90 × 0.020) - ([797.99 - 755.90] × 0.0800) = 11.7508 or $12.00 (rounded to the nearest dollar). The fortnightly levy adjustment is therefore $24.00 ($12.00 x 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. Example Employee'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 = $646.23 x = 646.99 WFT = $692.33 As x is greater than $512 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). Example Employee'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 = $646.23 x = 646.99 WFT = $692.33 As x is greater than $512 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 1 Employee'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 = 1103.99 Weekly withholding amount (y) = ( a × x ) - b = (0.3477 × 1103.99) - 165.4435 = 218.4138 or $218.00 (rounded to nearest dollar) Levy adjustment: weekly earnings are greater than WFT ($1010.21) and less than the SOP ($1,262) appropriate to employee with five children. Formula (3) applies. = (1010.21 × 0.0200) - ([1103.99 - 1010.21] × 0.0800) = 20.2042 - 7.5024 = 12.7018 or $13.00 (rounded to nearest dollar) Net weekly withholding amount $218.00 - $13.00 = $205.00 Example 2 Employee'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 = 555.99 Weekly 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 = $76.00 Tax 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 3 Employee's monthly earnings are $4,156.33. 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 $944 appropriate to an employee with one child. Therefore, scale 2 is applied. Convert to weekly equivalent = ($4,156.33 + 0.01) × 3 ÷ 13 = 959.1554 or $959 (ignore cents) x = 959.99 Weekly withholding amount (y) = ( a × x ) - b = (0.3477 × 959.99) - 165.4435 = 168.3450 or $168.00 (rounded to nearest dollar) Monthly withholding amount $168.00 × 13 ÷ 3 = $728.00 (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 $728.00 - $113.00 = $615.00 Example 1 Employee'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 = 1103.99 Weekly withholding amount (y) = ( a × x ) - b = (0.3477 × 1103.99) - 165.4435 = 218.4138 or $218.00 (rounded to nearest dollar) Levy adjustment: weekly earnings are greater than WFT ($1010.21) and less than the SOP ($1,262) appropriate to employee with five children. Formula (3) applies. = (1010.21 × 0.0200) - ([1103.99 - 1010.21] × 0.0800) = 20.2042 - 7.5024 = 12.7018 or $13.00 (rounded to nearest dollar) Net weekly withholding amount $218.00 - $13.00 = $205.00 Example 2 Employee'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 = 555.99 Weekly 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 = $76.00 Tax 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 3 Employee's monthly earnings are $4,156.33. 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 $944 appropriate to an employee with one child. Therefore, scale 2 is applied. Convert to weekly equivalent = ($4,156.33 + 0.01) × 3 ÷ 13 = 959.1554 or $959 (ignore cents) x = 959.99 Weekly withholding amount (y) = ( a × x ) - b = (0.3477 × 959.99) - 165.4435 = 168.3450 or $168.00 (rounded to nearest dollar) Monthly withholding amount $168.00 × 13 ÷ 3 = $728.00 (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 $728.00 - $113.00 = $615.00 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 (NAT 1024) can be expressed in a mathematical form, using the formulas and coefficients provided. To work out withholding amounts using the formulas: 4. Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result. 5. 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. 6. Round the result to the nearest dollar. 7. Divide this amount by five to convert it to the daily equivalent. 8. Round the daily withholding amount to the nearest dollar. 4. Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result. 5. 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. 6. Round the result to the nearest dollar. 7. Divide this amount by five to convert it to the daily equivalent. 8. Round the daily withholding amount to the nearest dollar. - Scale 1 where an employee is not claiming the tax-free threshold - Scale 2 where an employee is claiming the tax-free threshold. Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners (NAT 4466) Accounting software 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 amounts shown in the PAYG tax tables. The differences result from the rounding of components. Sample data Weekly withholding amounts Amounts to be withheld Weekly earnings $ Scale 1 No tax-free threshold Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 59 11.00 0.00 19.00 0.00 0.00 60 12.00 0.00 19.00 0.00 0.00 116 25.00 0.00 38.00 0.00 0.00 117 25.00 0.00 38.00 0.00 0.00 249 56.00 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 82.00 1.00 117.00 1.00 1.00 361 82.00 1.00 117.00 1.00 1.00 409 99.00 10.00 133.00 10.00 10.00 410 99.00 11.00 133.00 11.00 11.00 511 134.00 40.00 166.00 30.00 30.00 512 134.00 40.00 166.00 30.00 30.00 691 197.00 78.00 225.00 64.00 64.00 692 197.00 78.00 225.00 64.00 64.00 710 203.00 82.00 231.00 68.00 69.00 711 204.00 82.00 231.00 68.00 69.00 864 257.00 135.00 281.00 118.00 127.00 865 257.00 136.00 281.00 118.00 127.00 931 280.00 159.00 303.00 140.00 149.00 932 280.00 159.00 303.00 140.00 150.00 1281 401.00 280.00 416.00 255.00 267.00 1282 401.00 281.00 417.00 255.00 268.00 1322 415.00 294.00 430.00 268.00 281.00 1323 415.00 295.00 430.00 268.00 282.00 1672 551.00 415.00 543.00 382.00 398.00 1673 552.00 416.00 544.00 382.00 399.00 1844 619.00 482.00 607.00 445.00 464.00 1845 619.00 483.00 608.00 446.00 464.00 2119 726.00 590.00 709.00 547.00 568.00 2120 726.00 590.00 709.00 547.00 569.00 2490 870.00 734.00 846.00 684.00 709.00 2491 871.00 735.00 847.00 685.00 710.00 2652 934.00 797.00 906.00 744.00 771.00 2653 934.00 798.00 907.00 745.00 771.00 2736 966.00 830.00 937.00 775.00 803.00 2737 967.00 831.00 938.00 776.00 803.00 2898 1030.00 893.00 997.00 835.00 864.00 2899 1030.00 894.00 998.00 836.00 865.00 2913 1035.00 899.00 1003.00 841.00 870.00 2914 1036.00 900.00 1003.00 841.00 870.00 3110 1112.00 976.00 1076.00 914.00 945.00 3111 1113.00 976.00 1076.00 914.00 945.00 3460 1284.00 1113.00 1205.00 1043.00 1078.00 3461 1284.00 1113.00 1206.00 1044.00 1078.00 Fortnightly withholding amounts Amounts to be withheld Fortnightly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 118 22.00 0.00 38.00 0.00 0.00 120 24.00 0.00 38.00 0.00 0.00 232 50.00 0.00 76.00 0.00 0.00 234 50.00 0.00 76.00 0.00 0.00 498 112.00 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 0.00 720 164.00 2.00 234.00 2.00 2.00 722 164.00 2.00 234.00 2.00 2.00 818 198.00 20.00 266.00 20.00 20.00 820 198.00 22.00 266.00 22.00 22.00 1022 268.00 80.00 332.00 60.00 60.00 1024 268.00 80.00 332.00 60.00 60.00 1382 394.00 156.00 450.00 128.00 128.00 1384 394.00 156.00 450.00 128.00 128.00 1420 406.00 164.00 462.00 136.00 138.00 1422 408.00 164.00 462.00 136.00 138.00 1728 514.00 270.00 562.00 236.00 254.00 1730 514.00 272.00 562.00 236.00 254.00 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 2644 830.00 588.00 860.00 536.00 562.00 2646 830.00 590.00 860.00 536.00 564.00 3344 1102.00 830.00 1086.00 764.00 796.00 3346 1104.00 832.00 1088.00 764.00 798.00 3688 1238.00 964.00 1214.00 890.00 928.00 3690 1238.00 966.00 1216.00 892.00 928.00 4238 1452.00 1180.00 1418.00 1094.00 1136.00 4240 1452.00 1180.00 1418.00 1094.00 1138.00 4980 1740.00 1468.00 1692.00 1368.00 1418.00 4982 1742.00 1470.00 1694.00 1370.00 1420.00 5304 1868.00 1594.00 1812.00 1488.00 1542.00 5306 1868.00 1596.00 1814.00 1490.00 1542.00 5472 1932.00 1660.00 1874.00 1550.00 1606.00 5474 1934.00 1662.00 1876.00 1552.00 1606.00 5796 2060.00 1786.00 1994.00 1670.00 1728.00 5798 2060.00 1788.00 1996.00 1672.00 1730.00 5826 2070.00 1798.00 2006.00 1682.00 1740.00 5828 2072.00 1800.00 2006.00 1682.00 1740.00 6220 2224.00 1952.00 2152.00 1828.00 1890.00 6222 2226.00 1952.00 2152.00 1828.00 1890.00 6920 2568.00 2226.00 2410.00 2086.00 2156.00 6922 2568.00 2226.00 2412.00 2088.00 2156.00 Monthly withholding amounts Amounts to be withheld Monthly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 255.67 48.00 0.00 82.00 0.00 0.00 260.00 52.00 0.00 82.00 0.00 0.00 502.67 108.00 0.00 165.00 0.00 0.00 507.00 108.00 0.00 165.00 0.00 0.00 1079.00 243.00 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 1560.00 355.00 4.00 507.00 4.00 4.00 1564.33 355.00 4.00 507.00 4.00 4.00 1772.33 429.00 43.00 576.00 43.00 43.00 1776.67 429.00 48.00 576.00 48.00 48.00 2214.33 581.00 173.00 719.00 130.00 130.00 2218.67 581.00 173.00 719.00 130.00 130.00 2994.33 854.00 338.00 975.00 277.00 277.00 2998.67 854.00 338.00 975.00 277.00 277.00 3076.67 880.00 355.00 1001.00 295.00 299.00 3081.00 884.00 355.00 1001.00 295.00 299.00 3744.00 1114.00 585.00 1218.00 511.00 550.00 3748.33 1114.00 589.00 1218.00 511.00 550.00 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 5728.67 1798.00 1274.00 1863.00 1161.00 1218.00 5733.00 1798.00 1278.00 1863.00 1161.00 1222.00 7245.33 2388.00 1798.00 2353.00 1655.00 1725.00 7249.67 2392.00 1803.00 2357.00 1655.00 1729.00 7990.67 2682.00 2089.00 2630.00 1928.00 2011.00 7995.00 2682.00 2093.00 2635.00 1933.00 2011.00 9182.33 3146.00 2557.00 3072.00 2370.00 2461.00 9186.67 3146.00 2557.00 3072.00 2370.00 2466.00 10790.00 3770.00 3181.00 3666.00 2964.00 3072.00 10794.33 3774.00 3185.00 3670.00 2968.00 3077.00 11492.00 4047.00 3454.00 3926.00 3224.00 3341.00 11496.33 4047.00 3458.00 3930.00 3228.00 3341.00 11856.00 4186.00 3597.00 4060.00 3358.00 3480.00 11860.33 4190.00 3601.00 4065.00 3363.00 3480.00 12558.00 4463.00 3870.00 4320.00 3618.00 3744.00 12562.33 4463.00 3874.00 4325.00 3623.00 3748.00 12623.00 4485.00 3896.00 4346.00 3644.00 3770.00 12627.33 4489.00 3900.00 4346.00 3644.00 3770.00 13476.67 4819.00 4229.00 4663.00 3961.00 4095.00 13481.00 4823.00 4229.00 4663.00 3961.00 4095.00 14993.33 5564.00 4823.00 5222.00 4520.00 4671.00 14997.67 5564.00 4823.00 5226.00 4524.00 4671.00 Sample data - Scale 2 Weekly Medicare levy adjustment Weekly earnings $ Spouse only $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 409 0.00 0.00 0.00 0.00 0.00 0.00 410 0.00 0.00 0.00 0.00 0.00 0.00 460 5.00 5.00 5.00 5.00 5.00 5.00 461 5.00 5.00 5.00 5.00 5.00 5.00 511 10.00 10.00 10.00 10.00 10.00 10.00 512 10.00 10.00 10.00 10.00 10.00 10.00 537 11.00 11.00 11.00 11.00 11.00 11.00 538 11.00 11.00 11.00 11.00 11.00 11.00 563 11.00 11.00 11.00 11.00 11.00 11.00 564 11.00 11.00 11.00 11.00 11.00 11.00 589 12.00 12.00 12.00 12.00 12.00 12.00 590 12.00 12.00 12.00 12.00 12.00 12.00 615 12.00 12.00 12.00 12.00 12.00 12.00 616 12.00 12.00 12.00 12.00 12.00 12.00 641 13.00 13.00 13.00 13.00 13.00 13.00 642 13.00 13.00 13.00 13.00 13.00 13.00 667 13.00 13.00 13.00 13.00 13.00 13.00 668 13.00 13.00 13.00 13.00 13.00 13.00 693 14.00 14.00 14.00 14.00 14.00 14.00 694 14.00 14.00 14.00 14.00 14.00 14.00 719 12.00 14.00 14.00 14.00 14.00 14.00 720 12.00 14.00 14.00 14.00 14.00 14.00 745 10.00 15.00 15.00 15.00 15.00 15.00 746 9.00 15.00 15.00 15.00 15.00 15.00 771 7.00 14.00 15.00 15.00 15.00 15.00 772 7.00 14.00 15.00 15.00 15.00 15.00 797 5.00 12.00 16.00 16.00 16.00 16.00 798 5.00 12.00 16.00 16.00 16.00 16.00 823 3.00 10.00 16.00 16.00 16.00 16.00 824 3.00 10.00 16.00 16.00 16.00 16.00 849 1.00 8.00 14.00 17.00 17.00 17.00 850 1.00 8.00 14.00 17.00 17.00 17.00 875 0.00 6.00 12.00 18.00 18.00 18.00 876 0.00 5.00 12.00 18.00 18.00 18.00 901 0.00 3.00 10.00 16.00 18.00 18.00 902 0.00 3.00 10.00 16.00 18.00 18.00 927 0.00 1.00 8.00 14.00 19.00 19.00 928 0.00 1.00 8.00 14.00 19.00 19.00 953 0.00 0.00 6.00 12.00 18.00 19.00 954 0.00 0.00 6.00 12.00 18.00 19.00 979 0.00 0.00 4.00 10.00 16.00 20.00 980 0.00 0.00 3.00 10.00 16.00 20.00 1005 0.00 0.00 1.00 8.00 14.00 20.00 1006 0.00 0.00 1.00 8.00 14.00 20.00 1182 0.00 0.00 0.00 0.00 0.00 6.00 1183 0.00 0.00 0.00 0.00 0.00 6.00 1261 0.00 0.00 0.00 0.00 0.00 0.00 1262 0.00 0.00 0.00 0.00 0.00 0.00 Fortnightly Medicare levy adjustment Fortnightly earnings $ Spouse only $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 818 0.00 0.00 0.00 0.00 0.00 0.00 820 0.00 0.00 0.00 0.00 0.00 0.00 920 10.00 10.00 10.00 10.00 10.00 10.00 922 10.00 10.00 10.00 10.00 10.00 10.00 1022 20.00 20.00 20.00 20.00 20.00 20.00 1024 20.00 20.00 20.00 20.00 20.00 20.00 1074 22.00 22.00 22.00 22.00 22.00 22.00 1076 22.00 22.00 22.00 22.00 22.00 22.00 1126 22.00 22.00 22.00 22.00 22.00 22.00 1128 22.00 22.00 22.00 22.00 22.00 22.00 1178 24.00 24.00 24.00 24.00 24.00 24.00 1180 24.00 24.00 24.00 24.00 24.00 24.00 1230 24.00 24.00 24.00 24.00 24.00 24.00 1232 24.00 24.00 24.00 24.00 24.00 24.00 1282 26.00 26.00 26.00 26.00 26.00 26.00 1284 26.00 26.00 26.00 26.00 26.00 26.00 1334 26.00 26.00 26.00 26.00 26.00 26.00 1336 26.00 26.00 26.00 26.00 26.00 26.00 1386 28.00 28.00 28.00 28.00 28.00 28.00 1388 28.00 28.00 28.00 28.00 28.00 28.00 1438 24.00 28.00 28.00 28.00 28.00 28.00 1440 24.00 28.00 28.00 28.00 28.00 28.00 1490 20.00 30.00 30.00 30.00 30.00 30.00 1492 18.00 30.00 30.00 30.00 30.00 30.00 1542 14.00 28.00 30.00 30.00 30.00 30.00 1544 14.00 28.00 30.00 30.00 30.00 30.00 1594 10.00 24.00 32.00 32.00 32.00 32.00 1596 10.00 24.00 32.00 32.00 32.00 32.00 1646 6.00 20.00 32.00 32.00 32.00 32.00 1648 6.00 20.00 32.00 32.00 32.00 32.00 1698 2.00 16.00 28.00 34.00 34.00 34.00 1700 2.00 16.00 28.00 34.00 34.00 34.00 1750 0.00 12.00 24.00 36.00 36.00 36.00 1752 0.00 10.00 24.00 36.00 36.00 36.00 1802 0.00 6.00 20.00 32.00 36.00 36.00 1804 0.00 6.00 20.00 32.00 36.00 36.00 1854 0.00 2.00 16.00 28.00 38.00 38.00 1856 0.00 2.00 16.00 28.00 38.00 38.00 1906 0.00 0.00 12.00 24.00 36.00 38.00 1908 0.00 0.00 12.00 24.00 36.00 38.00 1958 0.00 0.00 8.00 20.00 32.00 40.00 1960 0.00 0.00 6.00 20.00 32.00 40.00 2010 0.00 0.00 2.00 16.00 28.00 40.00 2012 0.00 0.00 2.00 16.00 28.00 40.00 2364 0.00 0.00 0.00 0.00 0.00 12.00 2366 0.00 0.00 0.00 0.00 0.00 12.00 2522 0.00 0.00 0.00 0.00 0.00 0.00 2524 0.00 0.00 0.00 0.00 0.00 0.00 Monthly Medicare levy adjustment Monthly earnings $ Spouse only $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 1772.33 0.00 0.00 0.00 0.00 0.00 0.00 1776.67 0.00 0.00 0.00 0.00 0.00 0.00 1993.33 22.00 22.00 22.00 22.00 22.00 22.00 1997.67 22.00 22.00 22.00 22.00 22.00 22.00 2214.33 43.00 43.00 43.00 43.00 43.00 43.00 2218.67 43.00 43.00 43.00 43.00 43.00 43.00 2327.00 48.00 48.00 48.00 48.00 48.00 48.00 2331.33 48.00 48.00 48.00 48.00 48.00 48.00 2439.67 48.00 48.00 48.00 48.00 48.00 48.00 2444.00 48.00 48.00 48.00 48.00 48.00 48.00 2552.33 52.00 52.00 52.00 52.00 52.00 52.00 2556.67 52.00 52.00 52.00 52.00 52.00 52.00 2665.00 52.00 52.00 52.00 52.00 52.00 52.00 2669.33 52.00 52.00 52.00 52.00 52.00 52.00 2777.67 56.00 56.00 56.00 56.00 56.00 56.00 2782.00 56.00 56.00 56.00 56.00 56.00 56.00 2890.33 56.00 56.00 56.00 56.00 56.00 56.00 2894.67 56.00 56.00 56.00 56.00 56.00 56.00 3003.00 61.00 61.00 61.00 61.00 61.00 61.00 3007.33 61.00 61.00 61.00 61.00 61.00 61.00 3115.67 52.00 61.00 61.00 61.00 61.00 61.00 3120.00 52.00 61.00 61.00 61.00 61.00 61.00 3228.33 43.00 65.00 65.00 65.00 65.00 65.00 3232.67 39.00 65.00 65.00 65.00 65.00 65.00 3341.00 30.00 61.00 65.00 65.00 65.00 65.00 3345.33 30.00 61.00 65.00 65.00 65.00 65.00 3453.67 22.00 52.00 69.00 69.00 69.00 69.00 3458.00 22.00 52.00 69.00 69.00 69.00 69.00 3566.33 13.00 43.00 69.00 69.00 69.00 69.00 3570.67 13.00 43.00 69.00 69.00 69.00 69.00 3679.00 4.00 35.00 61.00 74.00 74.00 74.00 3683.33 4.00 35.00 61.00 74.00 74.00 74.00 3791.67 0.00 26.00 52.00 78.00 78.00 78.00 3796.00 0.00 22.00 52.00 78.00 78.00 78.00 3904.33 0.00 13.00 43.00 69.00 78.00 78.00 3908.67 0.00 13.00 43.00 69.00 78.00 78.00 4017.00 0.00 4.00 35.00 61.00 82.00 82.00 4021.33 0.00 4.00 35.00 61.00 82.00 82.00 4129.67 0.00 0.00 26.00 52.00 78.00 82.00 4134.00 0.00 0.00 26.00 52.00 78.00 82.00 4242.33 0.00 0.00 17.00 43.00 69.00 87.00 4246.67 0.00 0.00 13.00 43.00 69.00 87.00 4355.00 0.00 0.00 4.00 35.00 61.00 87.00 4359.33 0.00 0.00 4.00 35.00 61.00 87.00 5122.00 0.00 0.00 0.00 0.00 0.00 26.00 5126.33 0.00 0.00 0.00 0.00 0.00 26.00 5464.33 0.00 0.00 0.00 0.00 0.00 0.00 5468.67 0.00 0.00 0.00 0.00 0.00 0.00 Sample data - Scale 6 Weekly Medicare half-levy adjustment Weekly earnings $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 691 0.00 0.00 0.00 0.00 0.00 692 0.00 0.00 0.00 0.00 0.00 777 4.00 4.00 4.00 4.00 4.00 778 4.00 4.00 4.00 4.00 4.00 864 9.00 9.00 9.00 9.00 9.00 865 3.00 6.00 9.00 9.00 9.00 880 3.00 6.00 9.00 9.00 9.00 881 3.00 6.00 9.00 9.00 9.00 896 2.00 5.00 8.00 9.00 9.00 897 2.00 5.00 8.00 9.00 9.00 912 1.00 4.00 8.00 9.00 9.00 913 1.00 4.00 8.00 9.00 9.00 928 1.00 4.00 7.00 9.00 9.00 929 1.00 4.00 7.00 9.00 9.00 944 0.00 3.00 6.00 9.00 9.00 945 0.00 3.00 6.00 9.00 9.00 960 0.00 3.00 6.00 9.00 10.00 961 0.00 2.00 6.00 9.00 10.00 976 0.00 2.00 5.00 8.00 10.00 977 0.00 2.00 5.00 8.00 10.00 992 0.00 1.00 4.00 8.00 10.00 993 0.00 1.00 4.00 8.00 10.00 1008 0.00 1.00 4.00 7.00 10.00 1009 0.00 1.00 4.00 7.00 10.00 1024 0.00 0.00 3.00 6.00 10.00 1025 0.00 0.00 3.00 6.00 9.00 1040 0.00 0.00 3.00 6.00 9.00 1041 0.00 0.00 2.00 6.00 9.00 1056 0.00 0.00 2.00 5.00 8.00 1057 0.00 0.00 2.00 5.00 8.00 1072 0.00 0.00 1.00 4.00 8.00 1073 0.00 0.00 1.00 4.00 8.00 1088 0.00 0.00 1.00 4.00 7.00 1089 0.00 0.00 1.00 4.00 7.00 1104 0.00 0.00 0.00 3.00 6.00 1105 0.00 0.00 0.00 3.00 6.00 1120 0.00 0.00 0.00 2.00 6.00 1121 0.00 0.00 0.00 2.00 6.00 1136 0.00 0.00 0.00 2.00 5.00 1137 0.00 0.00 0.00 2.00 5.00 1152 0.00 0.00 0.00 1.00 4.00 1153 0.00 0.00 0.00 1.00 4.00 1168 0.00 0.00 0.00 1.00 4.00 1169 0.00 0.00 0.00 1.00 4.00 1182 0.00 0.00 0.00 0.00 3.00 1183 0.00 0.00 0.00 0.00 3.00 1261 0.00 0.00 0.00 0.00 0.00 1262 0.00 0.00 0.00 0.00 0.00 Fortnightly Medicare half-levy adjustment Fortnightly earnings $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 1382 0.00 0.00 0.00 0.00 0.00 1384 0.00 0.00 0.00 0.00 0.00 1554 8.00 8.00 8.00 8.00 8.00 1556 8.00 8.00 8.00 8.00 8.00 1728 18.00 18.00 18.00 18.00 18.00 1730 6.00 12.00 18.00 18.00 18.00 1760 6.00 12.00 18.00 18.00 18.00 1762 6.00 12.00 18.00 18.00 18.00 1792 4.00 10.00 16.00 18.00 18.00 1794 4.00 10.00 16.00 18.00 18.00 1824 2.00 8.00 16.00 18.00 18.00 1826 2.00 8.00 16.00 18.00 18.00 1856 2.00 8.00 14.00 18.00 18.00 1858 2.00 8.00 14.00 18.00 18.00 1888 0.00 6.00 12.00 18.00 18.00 1890 0.00 6.00 12.00 18.00 18.00 1920 0.00 6.00 12.00 18.00 20.00 1922 0.00 4.00 12.00 18.00 20.00 1952 0.00 4.00 10.00 16.00 20.00 1954 0.00 4.00 10.00 16.00 20.00 1984 0.00 2.00 8.00 16.00 20.00 1986 0.00 2.00 8.00 16.00 20.00 2016 0.00 2.00 8.00 14.00 20.00 2018 0.00 2.00 8.00 14.00 20.00 2048 0.00 0.00 6.00 12.00 20.00 2050 0.00 0.00 6.00 12.00 18.00 2080 0.00 0.00 6.00 12.00 18.00 2082 0.00 0.00 4.00 12.00 18.00 2112 0.00 0.00 4.00 10.00 16.00 2114 0.00 0.00 4.00 10.00 16.00 2144 0.00 0.00 2.00 8.00 16.00 2146 0.00 0.00 2.00 8.00 16.00 2176 0.00 0.00 2.00 8.00 14.00 2178 0.00 0.00 2.00 8.00 14.00 2208 0.00 0.00 0.00 6.00 12.00 2210 0.00 0.00 0.00 6.00 12.00 2240 0.00 0.00 0.00 4.00 12.00 2242 0.00 0.00 0.00 4.00 12.00 2272 0.00 0.00 0.00 4.00 10.00 2274 0.00 0.00 0.00 4.00 10.00 2304 0.00 0.00 0.00 2.00 8.00 2306 0.00 0.00 0.00 2.00 8.00 2336 0.00 0.00 0.00 2.00 8.00 2338 0.00 0.00 0.00 2.00 8.00 2364 0.00 0.00 0.00 0.00 6.00 2366 0.00 0.00 0.00 0.00 6.00 2522 0.00 0.00 0.00 0.00 0.00 2524 0.00 0.00 0.00 0.00 0.00 Monthly Medicare half-levy adjustment Monthly earnings $ 1 child $ 2 children $ 3 children $ 4 children $ 5 children $ 2994.33 0.00 0.00 0.00 0.00 0.00 2998.67 0.00 0.00 0.00 0.00 0.00 3367.00 17.00 17.00 17.00 17.00 17.00 3371.33 17.00 17.00 17.00 17.00 17.00 3744.00 39.00 39.00 39.00 39.00 39.00 3748.33 13.00 26.00 39.00 39.00 39.00 3813.33 13.00 26.00 39.00 39.00 39.00 3817.67 13.00 26.00 39.00 39.00 39.00 3882.67 9.00 22.00 35.00 39.00 39.00 3887.00 9.00 22.00 35.00 39.00 39.00 3952.00 4.00 17.00 35.00 39.00 39.00 3956.33 4.00 17.00 35.00 39.00 39.00 4021.33 4.00 17.00 30.00 39.00 39.00 4025.67 4.00 17.00 30.00 39.00 39.00 4090.67 0.00 13.00 26.00 39.00 39.00 4095.00 0.00 13.00 26.00 39.00 39.00 4160.00 0.00 13.00 26.00 39.00 43.00 4164.33 0.00 9.00 26.00 39.00 43.00 4229.33 0.00 9.00 22.00 35.00 43.00 4233.67 0.00 9.00 22.00 35.00 43.00 4298.67 0.00 4.00 17.00 35.00 43.00 4303.00 0.00 4.00 17.00 35.00 43.00 4368.00 0.00 4.00 17.00 30.00 43.00 4372.33 0.00 4.00 17.00 30.00 43.00 4437.33 0.00 0.00 13.00 26.00 43.00 4441.67 0.00 0.00 13.00 26.00 39.00 4506.67 0.00 0.00 13.00 26.00 39.00 4511.00 0.00 0.00 9.00 26.00 39.00 4576.00 0.00 0.00 9.00 22.00 35.00 4580.33 0.00 0.00 9.00 22.00 35.00 4645.33 0.00 0.00 4.00 17.00 35.00 4649.67 0.00 0.00 4.00 17.00 35.00 4714.67 0.00 0.00 4.00 17.00 30.00 4719.00 0.00 0.00 4.00 17.00 30.00 4784.00 0.00 0.00 0.00 13.00 26.00 4788.33 0.00 0.00 0.00 13.00 26.00 4853.33 0.00 0.00 0.00 9.00 26.00 4857.67 0.00 0.00 0.00 9.00 26.00 4922.67 0.00 0.00 0.00 9.00 22.00 4927.00 0.00 0.00 0.00 9.00 22.00 4992.00 0.00 0.00 0.00 4.00 17.00 4996.33 0.00 0.00 0.00 4.00 17.00 5061.33 0.00 0.00 0.00 4.00 17.00 5065.67 0.00 0.00 0.00 4.00 17.00 5122.00 0.00 0.00 0.00 0.00 13.00 5126.33 0.00 0.00 0.00 0.00 13.00 5464.33 0.00 0.00 0.00 0.00 0.00 5468.67 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 PAYG withholding: • Statement of formulas for calculating HELP, SSL, TSL and SFSS components (NAT 3539) • Tax table for individuals employed in the horticultural or shearing industry (NAT 1013) • Tax table for actors, variety artists and other entertainers (NAT 1023) • Tax table for seniors and pensioners (NAT 4466). • Statement of formulas for calculating HELP, SSL, TSL and SFSS components (NAT 3539) • Tax table for individuals employed in the horticultural or shearing industry (NAT 1013) • Tax table for actors, variety artists and other entertainers (NAT 1023) • Tax table for seniors and pensioners (NAT 4466). Tax file number (TFN) declarations The answers your employees provide on their Tax file number declaration (NAT 3092) 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. When a TFN has not been provided You must withhold 49% from any payment you make to a resident employee and 47% from a foreign resident employee, (ignoring any cents), if all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. 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 (NAT 1432) 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 49% from any payment you make to a resident employee and 47% 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: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. 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. • 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. They may, in limited circumstances, be entitled to claim a zone or overseas forces offset in their income tax return. If your foreign resident employee has claimed a tax offset on the Tax file number declaration, you don't need to make any adjustments to the amount you withhold. Withholding declarations An employee may use a Withholding declaration (NAT 3093) 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. Changes that may affect the amount you need to withhold include: • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • advising of a HELP, SSL, TSL or Financial Supplement debt, or changes to them • entitlement to a seniors and pensioners tax offset. • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • 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. Work it out To calculate additional withholding amounts for: • HELP, SSL or TSL debts, refer to either - HELP/SSL/TSL weekly tax table - HELP/SSL/TSL fortnightly tax table - HELP/SSL/TSL monthly tax table . • Financial Supplement debts, refer to either - SFSS weekly tax table . - SFSS fortnightly tax table - SFSS monthly tax table • Statement of formulas, refer to - Statement of formulas for calculating HELP, SSL, TSL and SFSS components • HELP, SSL or TSL debts, refer to either - HELP/SSL/TSL weekly tax table - HELP/SSL/TSL fortnightly tax table - HELP/SSL/TSL monthly tax table . • Financial Supplement debts, refer to either - SFSS weekly tax table . - SFSS fortnightly tax table - SFSS monthly tax table • Statement of formulas, refer to - Statement of formulas for calculating HELP, SSL, TSL and SFSS components - HELP/SSL/TSL weekly tax table - HELP/SSL/TSL fortnightly tax table - HELP/SSL/TSL monthly tax table . - SFSS weekly tax table . - SFSS fortnightly tax table - SFSS monthly tax table - 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. Withholding from allowances Leave loading If you pay leave loading as a lump sum, use Tax table for back payments, commissions, bonuses and similar payments (NAT 3348) 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 annual and long service leave 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 (NAT 3351). Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments (NAT 70980). Do not withhold any amount for HELP, SSL, TSL or Financial Supplement debts from lump sum termination payments. Claiming tax offsets 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, 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. • 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 to some low income earners with dependants, your employee must lodge a Medicare levy variation declaration (NAT 0929) with their Tax file number declaration. Some employees may be liable for an increased rate of Medicare levy or the Medicare levy surcharge as a result of new income tests. They can lodge a Medicare levy variation declaration, requesting you to increase the amount to be withheld from their payments. Work it out Medicare levy adjustment For payments made on or after 1 October 2016 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 section 12-35 of Schedule 1 to the TAA. Use the Withholding look-up tool to quickly work out the amount to withhold . Using this table You should use this table if you make payments to employees who are actors, variety artists and other entertainers who receive payments for their performances. Do not use this table if you make payments to employees, or other individuals engaged under a contract, to perform in a promotional activity that is any one of the following: • conducted in the presence of an audience • intended to be communicated to an audience by print or electronic media • for a film or tape • for a television or radio broadcast. • conducted in the presence of an audience • intended to be communicated to an audience by print or electronic media • for a film or tape • for a television or radio broadcast. For these types of payments the Commissioner has varied the rate of withholding to 20% of the payment. For more information refer to PAYG withholding - performing artists and promotional activities . Get it done You can download a printable version of the Tax table for actors, variety artists and other entertainers (NAT 1023, 489KB) in Portable Document Format (PDF). For all other relevant employees, refer to PAYG withholding Weekly tax table or Fortnightly tax table . Do not use this table for payments made to foreign residents engaged as contractors. These payments are subject to foreign resident withholding. For more information refer to Withholding from payments to foreign residents for entertainment or sports activities . Working out the withholding amount The tax table for actors, variety artists and other entertainers is only applicable to those who have three performances per week and have claimed the tax-free threshold. If the number of performances per week is different, or the employee has not claimed the tax-free threshold, use the formulas to calculate withholding amounts. To work out the amount you need to withhold using the tax table, you must: 1. Ignore any cents, input the employee's daily earnings into the Withholding look-up tool and refer to the corresponding amount to be withheld in column 2. 2. If the employee has claimed any tax offsets, see Claiming tax offsets to work out the daily value of the amount claimed. Subtract the daily value of the tax offsets from the amount found in step 1. Example An employee has claimed the tax-free threshold, earns $279.35 daily, works three performances this week and claims tax offsets of $500. Ignoring cents, input $279 into the Withholding look-up tool and refer to the corresponding amount to be withheld in column 2 of $24.00. Reduce this amount by the daily value of the tax offsets of $3.00 ($500 ÷ 52 ÷ 3 rounded to the nearest dollar). The amount to withhold is $21.00 ($24.00 - $3.00). 1. Ignore any cents, input the employee's daily earnings into the Withholding look-up tool and refer to the corresponding amount to be withheld in column 2. 2. If the employee has claimed any tax offsets, see Claiming tax offsets to work out the daily value of the amount claimed. Subtract the daily value of the tax offsets from the amount found in step 1. Example An employee has claimed the tax-free threshold, earns $279.35 daily, works three performances this week and claims tax offsets of $500. Ignoring cents, input $279 into the Withholding look-up tool and refer to the corresponding amount to be withheld in column 2 of $24.00. Reduce this amount by the daily value of the tax offsets of $3.00 ($500 ÷ 52 ÷ 3 rounded to the nearest dollar). The amount to withhold is $21.00 ($24.00 - $3.00). Using a formula The withholding amounts shown in this table can be expressed in a mathematical form. If you have developed your own payroll software package, you can use the formulas and the coefficients outlined in table A and table B. This section should be read with Statement of formulas for calculating amounts to be withheld (NAT 1004). The formulas comprise linear equations of the form y = ax - b where: • y is the weekly withholding amount expressed in dollars • x is the weekly earnings rounded down to whole dollars plus 99 cents, and • a and b are the values of the coefficient for the formulas as shown in tables A and B. Table A: Employee has claimed the tax-free threshold Weekly earnings (x) less than a b $443 0 0 $512 0.1520 67.4635 $641 0.2320 108.4923 $889 0.1680 67.4646 $1,602 0.2782 165.4435 $2,091 0.2760 161.9819 $4,326 0.3120 237.2704 $4,326 & over 0.3920 583.4242 Table B: Employee has not claimed the tax-free threshold Weekly earnings (x) less than a b $75 0.1520 0.1520 $451 0.1866 2.6045 $1,165 0.2782 44.0006 $1,653 0.2760 41.4841 $3,889 0.3120 101.0225 $3,889 & over 0.3920 412.1764 • y is the weekly withholding amount expressed in dollars • x is the weekly earnings rounded down to whole dollars plus 99 cents, and • a and b are the values of the coefficient for the formulas as shown in tables A and B. To work out withholding amounts using the formulas, you must: 1. Ignore any cents, multiply the per performance earnings by the number of performances for the week to derive the weekly equivalent. Add 99 cents to the result. 2. Calculate the weekly amount by applying the relevant coefficients from table A or B above, rounding to the nearest dollar. 3. Divide this amount by the number of performances for the week to work out the per performance withholding amount. Multiply this amount by the number of performances per day to convert it to the daily earnings equivalent. Round the daily withholding amount to the nearest dollar. 1. Ignore any cents, multiply the per performance earnings by the number of performances for the week to derive the weekly equivalent. Add 99 cents to the result. 2. Calculate the weekly amount by applying the relevant coefficients from table A or B above, rounding to the nearest dollar. 3. Divide this amount by the number of performances for the week to work out the per performance withholding amount. Multiply this amount by the number of performances per day to convert it to the daily earnings equivalent. Round the daily withholding amount to the nearest dollar. If you pay your employees daily rather than per performance, the amount to withhold (including reductions for tax offsets) should be worked out on a daily basis. Example Sandra has two performances for the week, one on Thursday and one on Saturday. Sandra earns $500.35 for each performance. She has claimed the tax-free threshold. 1. $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99. 2. $1,000.99 × 0.2782 - 165.4435 = $113.0319. Round to the nearest dollar = $113. 3. $113 ÷ 2 = $56.50. Round to the nearest dollar = $57. Therefore, the amount to withhold from each performance is $57. As there is only one performance per day, the daily withholding amount is the same as the per performance withholding amount. Example Sandra has two performances for the week, one on Thursday and one on Saturday. Sandra earns $500.35 for each performance. She has claimed the tax-free threshold. 1. $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99. 2. $1,000.99 × 0.2782 - 165.4435 = $113.0319. Round to the nearest dollar = $113. 3. $113 ÷ 2 = $56.50. Round to the nearest dollar = $57. Therefore, the amount to withhold from each performance is $57. As there is only one performance per day, the daily withholding amount is the same as the per performance withholding amount. 1. $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99. 2. $1,000.99 × 0.2782 - 165.4435 = $113.0319. Round to the nearest dollar = $113. 3. $113 ÷ 2 = $56.50. Round to the nearest dollar = $57. Accounting software Software written in accordance with the formulas in this table should be tested for accuracy against the Withholding look-up tool . The results obtained when using the coefficients in this table may differ slightly from the Withholding look-up tool. The differences result from the rounding of components. Tax file number (TFN) declarations 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 Tax file number declaration with all available details of the employee and send it to us. When a TFN has not been provided You must withhold 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents), if all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. 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 (NAT 1432) with us, they have 28 days to provide you with their TFN. If an employee has not given you their TFN within 28 days, you must withhold 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents) unless we tell you not to. Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. Claiming tax offsets If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration (NAT 3093). If your employee claims a tax offset, reduce the amount to be withheld from their earnings per performance by the value of the tax offset. The per performance value is the tax offset amount claimed divided by 52, divided by the number of performances per week. Round to the nearest dollar. Do not allow for any tax offsets if any of the following apply: • when no TFN has been provided • you are using foreign resident rates • the payee has not claimed the tax-free threshold. • when no TFN has been provided • you are using foreign resident rates • the payee has not claimed the tax-free threshold. Withholding declarations An employee may use a Withholding declaration (NAT 3093) to advise you of a tax offset they choose to claim through reduced withholding from you. For more information, see Claiming tax offsets. 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. Changes that may affect the amount you need to withhold include: • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • advising of a HELP, SSL, TSL or Financial Supplement debt, or changes to them. • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • advising of a HELP, SSL, TSL or Financial Supplement debt, or changes to them. 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 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 not given you a valid TFN, you need to withhold 47% for each $1 of earnings (ignoring any cents). • if they have given you a valid TFN, you need to withhold the amount calculated using the foreign resident tax rates, rounding any cents to the nearest dollar. Foreign resident tax rates Weekly earnings $ Weekly rate 0 to 1,672 32.5 cents for each dollar of earnings 1,673 to 3,460 $543 plus 37 cents for each $1 of earnings over $1,672 3,461 and over $1,204 plus 47 cents for each $1 of earnings over $3,460 • if they have not given you a valid TFN, you need to withhold 47% for each $1 of earnings (ignoring any cents). • if they have given you a valid TFN, you need to withhold the amount calculated using the foreign resident tax rates, rounding any cents to the nearest dollar. Foreign residents cannot claim tax offsets to reduce withholding. They may, in limited circumstances, be entitled to claim a zone or overseas forces offset in their income tax return. If your foreign resident employee has claimed a tax offset on the Tax file number declaration, you don't need to make any adjustments to the amount you withhold. For payments made on or after 1 October 2016 Withholding limit There is a withholding limit of 49% on tax withheld from any additional payments calculated using an annualised method. Applying this withholding limit may result in withholding not being sufficient to cover some employees' end of year tax liability. In these situations, an employee can ask their employer to increase their withholding for the remainder of the financial year. 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. It applies to certain withholding payments covered by Subdivisions 12-B (except sections 12-50 and 12-55), 12-C (except sections 12-85 and 12-90) and 12-D of Schedule 1 paid as a lump sum. Using this table Use this table if you make a payment of salary or wages which is: • a back payment (including lump sum payments in arrears) • a commission • a bonus or similar payment. • a back payment (including lump sum payments in arrears) • a commission • a bonus or similar payment. Other payments you should use this tax table for These payments include back payments of: • compensation or sickness or accident payments for an incapacity for work that are not tax exempt • Australian Government education or training payments - for example, Austudy or ABSTUDY • assessable pensions, benefits and allowances under the Social Security Act 1991 or the Veterans' Entitlements Act 1986, or similar payments made under a law of a foreign country, state or province. • compensation or sickness or accident payments for an incapacity for work that are not tax exempt • Australian Government education or training payments - for example, Austudy or ABSTUDY • assessable pensions, benefits and allowances under the Social Security Act 1991 or the Veterans' Entitlements Act 1986, or similar payments made under a law of a foreign country, state or province. Back payments (including lump sums in arrears) A back payment is a payment that was meant to have been made in a prior period. For example: • your employee's wages were underpaid due to an error or oversight • an allowance you were due to pay in July was overlooked and you made the payment in December. • your employee's wages were underpaid due to an error or oversight • an allowance you were due to pay in July was overlooked and you made the payment in December. A back payment is distinct from a bonus, which is a payment made for recognition of performance including past performance. A bonus (or similar payment) can only be considered a back payment if you paid the bonus later than the time that it should have been paid. If you normally process payments in a pay period later than the work is performed, for example, overtime payments paid with a time lag of one pay period, they are not considered back payments. These payments are treated as part of the normal pay cycle when paid and withholding is calculated on total earnings for that period. An overtime payment is only considered a back payment if it was meant to have been made in a prior pay period. Commissions Commissions are typically payments made as recognition of performance or service, and may be calculated as a percentage of the proceeds from a particular transaction or series of transactions. Bonuses and similar payments A bonus is usually made to an employee in recognition of performance or services, and may be calculated as a percentage of the proceeds from a particular business transaction. These payments may not necessarily be related to a particular period of work. A payment will be treated as similar to a bonus if it is an amount of a one-off nature that does not relate to work performed in a particular period. Examples include: • a once-only payment made to a payee as compensation for a changed work location • an amount paid as a sign-on bonus to a payee entering a workplace agreement • any lump sum allowance. • a once-only payment made to a payee as compensation for a changed work location • an amount paid as a sign-on bonus to a payee entering a workplace agreement • any lump sum allowance. Leave loading Payment of leave loading can also be regarded as a payment similar to a bonus, if it is made as a lump sum and not on a pro rata basis as leave is taken. If you pay leave loading on a pro rata basis, add it to earnings for the period to calculate withholding using the standard tax tables. Tax file number (TFN) declarations The answers your employees provide on their Tax file number declaration (NAT 3092) 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. When a TFN has not been provided You must withhold 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents) if all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. 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 (NAT 1432) 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 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents) unless we tell you not to. Do not allow for tax offsets or Medicare levy adjustment. Do not withhold any amount for: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. Terms we use Additional payments Additional payments include back payments (including lump sum payments in arrears), commissions, bonuses and similar payments. Normal earnings Normal earnings are gross taxable earnings and include all salary and wage income, taxable allowances, and overtime earnings for the current financial year. This includes any back payments previously made using Method B(i). At the start of a financial year, an employee's normal earnings can be based on the last full pay period worked in the previous financial year. If an employee's pay fluctuates significantly, you can use an average of gross taxable earnings for the current financial year (or, if applicable, the previous financial year). If an employee has no current or past normal earnings (for example, the employee is newly employed), you can include expected future earnings in your calculations. This can be based on the employee's contracted or expected salary for the financial year. For the purposes of this table, normal earnings do not include employment termination payments or unused leave payments made on termination of employment. Average total earnings Average total earnings are the sum of all normal earnings paid in the current financial year, including current pay, plus any current year back payments if Method B(i) is used to calculate withholding. Then divide the total earnings by the number of pay periods to date (including the current pay period). Pay periods per financial year Pay periods per financial year refers to a total of 52 pay periods if paid weekly, 26 pay periods if paid fortnightly or 12 pay periods if paid monthly. No adjustments are required for a 53 week / 27 fortnight year. Withholding limit If your employee has a Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) or Financial Supplement debt, see HELP, SSL, TSL, SFSS and additional payments. If you use Method A or Method B(ii), the amount of tax to be withheld from an additional payment is limited to a maximum of 49% of the additional payment. If the withholding amount calculated (including a HELP, SSL, TSL or Financial Supplement component) using Method A or Method B(ii) exceeds 49% of the additional payment being made, then the amount is reduced to be equal to 49% of that payment. The withholding limit applies to the additional payment only and not to normal earnings for the current pay period. For some employees, the withholding limit may result in their withholding amounts not being sufficient to cover their end-of-year tax liability, as their total earnings for the financial year may exceed the HELP, SSL, TSL or Financial Supplement repayment threshold or attract a higher rate of tax. Under these circumstances, your employee can arrange an upwards variation by entering into an agreement with you to vary the rate or amount of withholding. For more information about withholding variations, refer to: • For employers: PAYG withholding variations for payers • For employees: PAYG withholding - varying your PAYG withholding . • For employers: PAYG withholding variations for payers • For employees: PAYG withholding - varying your PAYG withholding . For more information about HELP, SSL, TSL and Financial Supplement repayment thresholds, see HELP, SSL, TSL and SFSS repayment thresholds and rates . Working out the withholding amount To work out the amount you need to withhold from an additional payment, you must use either Method A or Method B. Using Method B is more complex but produces a withholding amount that more closely approximates the actual tax payable. Calculations made using either method are acceptable to work out the withholding amount. If your calculation using either method results in a negative amount, you treat the result as nil. Using Method A Use this method for any additional payments made regardless of the financial year the additional payment applies to. This includes all back payments, commissions, bonuses or similar payments. This method calculates withholding by apportioning additional payments made in the current pay period over the number of pay periods in a financial year, and applying that average amount to the gross earnings in the current pay period. If you are paying a commission, bonus or similar payment for a defined period of less than 12 months, you can choose to calculate withholding by using the number of pay periods the payment relates to at step 3. For example, if a commission relates to four weeks and the employee is paid weekly, you divide the commission by four pay periods at step 3, rather than 52 pay periods. Step Instruction 1 Work out your employee's gross earnings excluding any additional payments for the current pay period. Ignore any cents. 2 Use the relevant tax table to find the amount to be withheld from your employee's gross earnings in step 1. 3 Add any additional payments to be made in the current pay period together and divide the total by the number of pay periods in the financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Ignore any cents. 4 Add the amount at step 3 to the gross earnings at step 1. 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. 6 Subtract the amount at step 2 from the amount at step 5. 7 Multiply the amount at step 6 by the number of pay periods used in step 3. 8 Multiply the additional payment being made in the current pay period by 49%. 9 Use the lesser amount of step 7 and step 8 for the withholding on the additional payment. Ignore any cents. 10 Work out the total PAYG withholding for the current pay period by adding the withholding on the additional payment (step 9) to the withholding on the gross earnings (step 2). Using Method B Use Method B(i) for any back payments applied to specific periods in the current financial year. Use Method B(ii) for either: • back payments that relate to a prior financial year • any additional payments (including commissions, bonuses or similar payments) that don't relate to a single pay period regardless of the financial year the additional payment applies to. • back payments that relate to a prior financial year • any additional payments (including commissions, bonuses or similar payments) that don't relate to a single pay period regardless of the financial year the additional payment applies to. If you are making back payments applying to current and previous financial years, apportion the back payment between those years and then use the applicable method for each component to calculate withholding. If you are making multiple additional payments: • in the current pay period, you first need to calculate withholding on the total of any current financial year back payments (including lump sum in arrears) then calculate the withholding on any other additional payments • in the current financial year, that is, you made an additional payment to the employee in a previous pay period, do not recalculate the withholding for the additional payment previously made. • in the current pay period, you first need to calculate withholding on the total of any current financial year back payments (including lump sum in arrears) then calculate the withholding on any other additional payments • in the current financial year, that is, you made an additional payment to the employee in a previous pay period, do not recalculate the withholding for the additional payment previously made. B(i) Back payments applied to specific periods in the current financial year This method recalculates withholding for each pay period the back payment applies. Step Instruction 1 Work out how much of the back payment applied to each earlier pay period in the current financial year. 2 For the first affected pay period, add the back payment relevant to that period to the normal earnings 1 previously paid to get total earnings for that period. 3 Use the relevant tax table to find the amount to be withheld from the total earnings for that period. 4 Subtract the amount previously withheld for the period from the amount at step 3. 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the back payment. 6 Use the relevant tax table to find the amount to be withheld from your employee's gross earnings (excluding additional payments) for the current pay period. 7 Work out the total PAYG withholding for the current pay period by adding the withholding on the back payment (step 5) to the withholding on the gross earnings (step 6). | 1 See Terms we use for the definition of normal earnings.: B(ii) Additional payments applied over the whole financial year This method calculates withholding by averaging all additional payments made in the current financial year over the number of pay periods in a financial year, and applying that to the average total earnings to date. Step Instruction 1 Calculate the average total earnings 2 paid to your employee over the current financial year to date. Ignore any cents. 2 Use the relevant tax table to find the amount to be withheld from the average total earnings in step 1. 3 Add all additional payments made in the current financial year if Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Ignore any cents. 4 Add the amount at step 3 to the average total earnings at step 1. 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. 6 Subtract the amount at step 2 from the amount at step 5. 7 Multiply the amount in step 6 by the number of pay periods used in step 3. 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7. 9 Multiply the additional payment being made in the current pay period by 49%. 10 Use the lesser amount of step 8 and step 9 for the withholding on the additional payment. Ignore any cents. 11 Use the relevant tax table to find the amount to be withheld from your employee's gross earnings (excluding additional payments) for the current pay period. 12 Work out the total PAYG withholding for this pay period by adding the withholding on the additional payment (step 10) to the withholding on the gross earnings (step 11). | 2 See Terms we use for the definition of average total earnings.: Commissions, bonuses or similar payments If a commission, bonus or similar payment relates to work your employee performed for more than one pay period (or for an undefined period), you calculate withholding by applying either Method A or Method B(ii). Do not use this tax table for payments for a single pay period. If the commission, bonus or similar payment relates to work your employee performed in a single pay period (for example, a week, a fortnight or a month) the amount is added to all their other earnings for the current period. Withholding is then calculated using the standard PAYG withholding tax tables. HELP, TSL, SFSS and additional payments If your employee has advised you they have a Higher Education Loan Program (HELP), Trade Support Loan (TSL) or Financial Supplement debt on their Tax file number declaration (NAT 3092) or Withholding declaration (NAT 3093), you must also withhold from the additional payment using the relevant HELP/TSL or SFSS tax tables. You calculate the amounts you need to withhold from additional payments for HELP, TSL and SFSS by using the same method you used to calculate the PAYG withholding amount from the additional payment. For example, if you calculate the amount to be withheld from the additional payment using Method A, use the same method to calculate the amounts to be withheld for HELP, TSL and SFSS purposes. How do you calculate withholding on the additional payment if it is calculated separately to the HELP, TSL and SFSS components? If you calculate withholding separately, you need to make sure that the withholding limit in Method A and Method B(ii) applies to the combined total calculated for the additional payment and the HELP, TSL and SFSS components. For example, at step 9 in Method A you must combine the amounts from the two separate calculations used for step 7 before comparing it to the amount calculated at step 8. Get it done You can use the following schedule that combine PAYG withholding with HELP, TSL and SFSS instead of repeating the calculation separately for each component: • Schedule 8 - Statement of formulas for calculating Higher Education Loan Program (HELP), Trade Support Loan (TSL) and Student Financial Supplement Scheme (SFSS) components (NAT 3539). • Schedule 8 - Statement of formulas for calculating Higher Education Loan Program (HELP), Trade Support Loan (TSL) and Student Financial Supplement Scheme (SFSS) components (NAT 3539). The results obtained when using the coefficients in the above schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. Either calculation is acceptable. Copies of all the tax tables are available on our website, refer to Tax tables . Variations If your employee has a withholding variation in place for the current financial year, you use one of the following to work out the amount of withholding from additional payments: • the varied rate - if the relevant income is specified in the variation notice • this tax table - if the relevant income is not specified in the variation notice. • the varied rate - if the relevant income is specified in the variation notice • this tax table - if the relevant income is not specified in the variation notice. If your employee had a withholding variation in place at the time the additional payment accrued but the withholding variation is no longer in effect when the additional payment is made, it does not apply when working out the amount to withhold. Find out more If you need help to determine whether to use a withholding variation to work out the amount to withhold from an additional payment, phone us on 1300 360 221. Leave without pay For the purposes of this table, any periods where your employee has taken leave without pay do not affect the calculations outlined in each of the methods. For example, for Method A and Method B(ii), you are still required at step 3 to apportion all additional payments made by the total number of pay periods in a financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Superannuation income streams To work out the amount you need to withhold from the taxable component of back payments of super income streams (pensions and annuities), including lump sum payments in arrears, use either Method A or B. Payment summaries You must record back payments on your employee's payment summary. What payment summary you use depends on whether the back payments relate to a superannuation income stream or previous period of assessable foreign service. Use: • PAYG payment summary - individual non-business (NAT 0046) for all back payments except those for super income streams or if they were related to a previous period of assessable foreign service • PAYG payment summary - superannuation income stream (NAT 70987) for super income stream payments • PAYG payment summary - foreign employment (NAT 73297) for payments related to a previous period of assessable foreign service. • PAYG payment summary - individual non-business (NAT 0046) for all back payments except those for super income streams or if they were related to a previous period of assessable foreign service • PAYG payment summary - superannuation income stream (NAT 70987) for super income stream payments • PAYG payment summary - foreign employment (NAT 73297) for payments related to a previous period of assessable foreign service. Find out more For more information about payment summaries, refer to PAYG payment summaries and guidelines . Completing the individual non-business payment summary For payments accrued in the current financial year include the total: • gross amount of all payments at 'Gross payments' • amount withheld at 'Total tax withheld'. • gross amount of all payments at 'Gross payments' • amount withheld at 'Total tax withheld'. Salary and wage income accrued before the current financial year For each payment accrued in a prior financial year, but not more than 12 months before the date of payment include the total: • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. For each payment accrued more than 12 months before the date of payment of less than $1,200, include the total: • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. For each payment accrued more than 12 months before the date of payment of $1,200 or more, include the total: • gross amount of the payment at 'Lump sum E' • amount withheld at 'Total tax withheld'. • gross amount of the payment at 'Lump sum E' • amount withheld at 'Total tax withheld'. Other amounts accrued before the current financial year 3 For each payment accrued in a prior financial year of less than $1,200, include the total: • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. • gross amount of the payment at 'Gross payments' • amount withheld at 'Total tax withheld'. For each payment accrued in a prior financial year of $1,200 or more, include the total: • gross amount of the payment at 'Lump sum E' • amount withheld at 'Total tax withheld'. • gross amount of the payment at 'Lump sum E' • amount withheld at 'Total tax withheld'. Employee letter You must also provide your employee with a letter specifying the financial years over which the amount accrued and the gross amount that accrued each financial year. Completing the superannuation income stream payment summary For payments accrued in the current financial year, include: • the component amounts at both - 'Taxable component' (both taxed and untaxed elements if applicable) - 'Tax-free component' • the amount withheld at 'Total tax withheld'. • the component amounts at both - 'Taxable component' (both taxed and untaxed elements if applicable) - 'Tax-free component' • the amount withheld at 'Total tax withheld'. - 'Taxable component' (both taxed and untaxed elements if applicable) - 'Tax-free component' For payments accrued prior to the current financial year, include: • the component amounts at both - 'Lump sum in arrears - taxable component' (both taxed and untaxed elements if applicable) - 'Lump sum in arrears - tax-free component' • the amount withheld at 'Total tax withheld'. • the component amounts at both - 'Lump sum in arrears - taxable component' (both taxed and untaxed elements if applicable) - 'Lump sum in arrears - tax-free component' • the amount withheld at 'Total tax withheld'. - 'Lump sum in arrears - taxable component' (both taxed and untaxed elements if applicable) - 'Lump sum in arrears - tax-free component' Payee letter You must also provide your payee with a letter specifying the financial years over which the amount accrued and the gross amount that accrued each financial year. Completing the foreign employment payment summary For salary and wage payments accrued in the current financial year, include the total: • gross amount of all payments at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. • gross amount of all payments at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. For each salary and wage payment accrued in a prior financial year, but not more than 12 months before the date of payment, include the total: • gross amount of the payment at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. • gross amount of the payment at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. For each salary and wage payment accrued more than 12 months before the date of payment of less than $1,200, include the total: • gross amount of the payment at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. • gross amount of the payment at 'Gross payments' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. For each salary and wage payment accrued more than 12 months before the date of payment of $1,200 or more, include the total: • gross amount of the payment at 'Lump sum E' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. • gross amount of the payment at 'Lump sum E' • amount withheld and paid to a foreign tax jurisdiction (if applicable) at 'Foreign tax paid' • amount withheld for Australian tax purposes at 'Total Australian tax withheld'. Employee letter You must also provide your employee with a letter specifying the financial years over which the amount accrued and the gross amount that accrued each financial year. | 3 Refer to Other payments you should use this tax table for: Examples Example 1: Withholding from a bonus payment using Method A Mark, who has an accumulated HELP debt, is due to receive an annual bonus of $900. Mark earns $1,500 per week. Using Method A, calculate the withholding amount for the current pay period as follows: PAYG withholding component Step Instruction Result 1 Work out Mark's gross earnings for the current pay period. $1,500 2 Use the relevant tax table to find the amount to be withheld from Mark's gross earnings in step 1. $356 3 Divide the additional payment by the number of pay periods in the financial year. = $900 / 52 $17 4 Add the amount at step 3 to the gross earnings at step 1. = $1,500 + $17 $1,517 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $362 6 Subtract the amount at step 2 from the amount at step 5. = $362 - $356 $6 7 Multiply the amount at step 6 by the number of pay periods in the financial year for the withholding on the additional payment. = $6 × 52 $312 As Mark has an accumulated HELP debt, his employer also needs to calculate a withholding amount from the bonus payment for HELP. They use the same method as they used to calculate withholding for the bonus payment in the first part of this example. HELP component Step Instruction Result 1 Work out Mark's gross earnings for the current pay period. $1,500 2 Use the relevant tax table to find the amount to be withheld for HELP from Mark's gross earnings in step 1. $90 3 Divide the additional payment by the number of pay periods in the financial year. = $900 / 52 $17 4 Add the amount at step 3 to the gross earnings at step 1. = $1,500 + $17 $1,517 5 Use the relevant tax table to find the amount to be withheld for HELP from the amount at step 4. $91 6 Subtract the amount at step 2 from the amount at step 5. = $91 - $90 $1 7 Multiply the amount at step 6 by the number of pay periods in the financial year for the HELP withholding on the additional payment. = $1 × 52 $52 Withholding limit (including HELP component) Step Instructions Result 8 Multiply the additional payment being made in the current pay period by 49%. = $900 × 49% $441 9 Use the lesser amount of step 7 (combined) and step 8 for the withholding on the additional payment. Ignore any cents. Combine two step 7 results $312 + $52 = $364. This amount is used as it's less than step 8. $364 10 See below Calculate the total PAYG withholding amount for the current pay period (step 10) Add the amounts to be withheld: • PAYG withholding on gross earnings in the current pay period = $356 • HELP withholding on gross earnings in the current pay period = $90 • PAYG withholding on additional payment = $312 • HELP withholding on additional payment = $52 The total PAYG withholding is $810 ($356 + $90 + $312 + $52). Example 1 uses both: • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Example 2: Withholding from a missed payment using Method B(i) Robyn, who has an accumulated HELP debt, is due to receive a back payment relating to the current financial year following a pay rise. Since the first pay period of the current financial year and up until period 8, Robyn has earned $1,000 per week. From pay period 9 (her current pay period), Robyn will earn $1,100 per week. Robyn's back payment which covers the first eight pay periods of the current financial year will be paid to her in pay period 9. Therefore, Robyn will receive a back payment of $800 along with her normal gross earnings of $1,100. Using Method B(i), calculate the withholding amount for the current pay period 9 as follows: PAYG withholding component Step Instruction Result 1 Work out how much of Robyn's additional payment applied to each earlier pay period in the current financial year. In this example it is $800 over eight pay periods. = $800 / 8 $100 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get the total earnings for that period. = $1,000 + $100 $1,100 3 Use the relevant tax table to find the amount to be withheld from Robyn's total earnings for that period. $217 4 Subtract the amount previously withheld for the period from the amount at step 3. = $217 - $183 $34 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 8 × $34. $272 6 Use the relevant tax table to find the amount to be withheld from Robyn's gross earnings for the current pay period. $217 7 Add the withholding on the additional payment (step 5) to the withholding on Robyn's gross earnings (step 6) to work out the total withholding for the current pay period. = $217 + $272 $489 As Robyn has an accumulated HELP debt, her employer also needs to calculate a withholding amount from the back payment for HELP. They use the same method as they used to calculate withholding for the back payment in the first part of this example. HELP component Step Instruction Result 1 Work out how much of Robyn's additional payment applied to each earlier pay period in the current financial year. In this example it is $800 over eight pay periods. = $800 / 8 $100 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total normal earnings for that period. = $1,000 + $100 $1,100 3 Use the relevant tax table to find the amount to be withheld for HELP from Robyn's total normal earnings for that period. $44 4 Subtract the amount previously withheld for the period from the amount at step 3. = $44 - $0 $44 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the HELP withholding on the additional payments. As it is the same amount for each pay period in this example, it will be 8 × $44. $352 6 Use the relevant tax table to find the amount to be withheld for HELP from Robyn's gross earnings for the current pay period. $44 7 Add the HELP withholding on the additional payment (step 5) to the withholding on Robyn's gross earnings (step 6) to work out the withholding for HELP for the current period. = $44 + $352 $396 Calculate the total PAYG withholding amount for the current pay period Add the amounts to be withheld: • PAYG withholding on gross earnings in the current pay period = $217 • HELP withholding on gross earnings in the current pay period = $44 • PAYG withholding on additional payment = $272 • HELP withholding on additional payment = $352 The total PAYG withholding is $885 ($217 + $44 + $272 + $352). Example 2 uses: • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Example 3: Withholding from a lump sum payment in arrears using Method B(ii) Mary is employed by Minercorp Pty Ltd and receives a fortnightly salary of $1,800. She is entitled to an allowance from her employer when working in remote areas. In 2013, Mary worked in a remote area for six months, but she was not paid this allowance. The total allowance that she should have been paid for this period was $2,480. Her employer discovers their oversight and agrees to pay her the $2,480 as a lump sum payment in arrears on 11 November 2015. Her gross earnings for pay period 10 is $1,800. Mary has received normal earnings (year to date) of $18,000 including the current pay. The amount Mary's payer must withhold from this payment is calculated using Method B(ii) as follows: Step Instruction Result 1 Calculate Mary's average total earnings over the current financial year to date (including current pay). = $18,000 / 10 $1,800 2 Use the relevant tax table to find the amount to be withheld from Mary's average total earnings in step 1. $296 3 Add all additional payments made to Mary in the current financial year if Method B(ii) was used to calculate the withholding, to the additional payment in the current pay. Mary's additional payment of $2,480 is then divided by the number of pay periods in the financial year. = $2,480 / 26 $95 4 Add the amount at step 3 to the average total earnings at step 1. = $1,800 + $95 $1,895 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $328 6 Subtract the amount at step 2 from the amount at step 5. = $328 - $296 $32 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $32 × 26 $832 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding on the additional payment. = $832 - $0 $832 9 Use the relevant tax table to find the amount to be withheld from the payee's gross earnings (excluding additional payments) for the current pay period. $296 10 Work out the total PAYG withholding for this pay period by adding the withholding on the additional payment (step 8) to the withholding on the gross earnings (step 9). = $832 + $296 $1,128 Example 3 uses Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015. The calculations are made using scale 2, with tax-free threshold. Example 4: Withholding using Method B(i) and Method B(ii) Pablo, who has an accumulated Financial Supplement debt, is employed by Macropayers Pty Ltd. On 1 September 2015, he received a salary increase of $5 an hour, taking his gross monthly salary from $4,800 to $5,600. His employer agreed that the increase would be backdated to 1 August 2014 and paid at the end of September 2015. This means that the back payment of salary covers 13 pay periods. The total back payment of salary is $10,400. To work out the total amount to be withheld from the back payment to Pablo, his employer will need to calculate the amount accrued in both: • the current financial year (2 pay periods from 1 July to August 2015) = $1,600 • a prior financial year (11 pay periods from 1 August 2014 to 30 June 2015) = $8,800. You don't need to complete some steps if both Methods B(i) and (ii) are used in the calculations. Method B(i) - PAYG withholding component Step Instruction Result 1 Work out how much of Pablo's additional payment applied to each earlier pay period in the current financial year. In this example it is $1,600 over two pay periods. = $1,600 / 2 $800 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total earnings for that period. = $4,800 + $800 $5,600 3 Use the relevant tax table to find the amount to be withheld from Pablo's total earnings for that period. $1,231 4 Subtract the amount previously withheld for the period from the amount at step 3. = $1,231 - $953 $278 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 2 × $278. $556 6 This step is not required as withholding is also calculated using Method B(ii). 7 This step is not required as withholding is also calculated using Method B(ii). As Pablo has an accumulated Financial Supplement debt, his employer will need to calculate a withholding amount from the back payment for SFSS. They use the same method as they used to calculate withholding for the back payment in the first part of this example. Method B(i) - SFSS component Step Instruction Result 1 Work out how much of Pablo's additional payment applied to each earlier pay period in the current financial year. In this example it is $1,600 over two pay periods. = $1,600 / 2 $800 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total normal earnings for that period. = $4,800 + $800 $5,600 3 Use the relevant tax table to find the amount to be withheld for SFSS from Pablo's total normal gross earnings for that period. $169 4 Subtract the amount previously withheld for the period from the amount at step 3. = $169 - $95 $74 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the SFSS withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 2 × $74. $148 6 This step is not required as withholding is also calculated using Method B(ii). 7 This step is not required as withholding is also calculated using Method B(ii). Method B(ii) - PAYG withholding component Step Instruction Result 1 Calculate Pablo's average total earnings, which in this example is = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 $5,600 2 Use the relevant tax table to find the amount to be withheld from Pablo's average total earnings in step 1. $1,231 3 Add all additional payments made to Pablo in current financial year where Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year. = $8,800 / 12 $733 4 Add the amount at step 3 to the average total earnings at step 1. = $5,600 + $733 $6,333 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $1,482 6 Subtract the amount at step 2 from the amount at step 5. = $1,482 - $1,231 $251 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $251 × 12 $3,012 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding on the additional payment. = $3,012 - $0 $3,012 9 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 10 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 11 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 12 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. As Pablo has an accumulated Financial Supplement debt his employer will need to calculate the withholding amount from the back payment for SFSS. They use the same method as they used to calculate withholding for the back payment in the first part of this example. Method B(ii) - SFSS component Step Instruction Result 1 Calculate Pablo's average total earnings, which in this example is: = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 $5,600 2 Use the relevant tax table to find the amount to be withheld for SFSS on Pablo's average total earnings in step 1. $169 3 Add all additional payments made to Pablo in current financial year where Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year. = $8,800 / 12 $733 4 Add the amount at step 3 to the average total earnings at step 1. = $5,600 + $733 $6,333 5 Use the relevant tax table to find the amount to be withheld for SFSS from the amount at step 4. $191 6 Subtract the amount at step 2 from the amount at step 5. = $191 - $169 $22 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $22 × 12 $264 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding for SFSS on the additional payment. = $264 - $0 $264 Withholding limit (including SFSS component) Step Instruction Result 9 Multiply the additional payment being made using Method B(ii) in the current pay period by 49%. = $8,800 × 49% $4,312 10 Use the lesser amount of step 8 (combined) and step 9 for the withholding on the additional payment. Ignore any cents. Combine the two step 8 results. = $3,012 + $264 = $3,276 This amount is used as it's less than step 9. $3,276 11 This step is not applicable as total withholding for the current pay period will need to include amounts calculated in Method B(i). 12 This step is not applicable as total withholding for the current pay period will need to include amounts calculated in Method B(i). Calculate the total PAYG withholding amount for the current pay period Add the amounts to be withheld: Withholding on gross earnings current pay period • PAYG withholding on gross earnings in the current pay period = $1,231 • SFSS withholding on gross earnings in the current pay period = $169 Method B(i) withholding • PAYG withholding on additional payment for current financial year = $556 • SFSS withholding on additional payment for current financial year = $148 Method B(ii) withholding • PAYG withholding on additional payment for prior financial year = $3,012 • SFSS withholding on additional payment for prior financial year = $264 Total PAYG withholding is $5,380 ($1,231 + $169 + $556 + $148 + $3,012 + $264). Example 4 uses both: • Student Financial Supplement Scheme (SFSS) monthly tax table (NAT 3308) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Example 1: Withholding from a bonus payment using Method A Mark, who has an accumulated HELP debt, is due to receive an annual bonus of $900. Mark earns $1,500 per week. Using Method A, calculate the withholding amount for the current pay period as follows: PAYG withholding component Step Instruction Result 1 Work out Mark's gross earnings for the current pay period. $1,500 2 Use the relevant tax table to find the amount to be withheld from Mark's gross earnings in step 1. $356 3 Divide the additional payment by the number of pay periods in the financial year. = $900 / 52 $17 4 Add the amount at step 3 to the gross earnings at step 1. = $1,500 + $17 $1,517 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $362 6 Subtract the amount at step 2 from the amount at step 5. = $362 - $356 $6 7 Multiply the amount at step 6 by the number of pay periods in the financial year for the withholding on the additional payment. = $6 × 52 $312 As Mark has an accumulated HELP debt, his employer also needs to calculate a withholding amount from the bonus payment for HELP. They use the same method as they used to calculate withholding for the bonus payment in the first part of this example. HELP component Step Instruction Result 1 Work out Mark's gross earnings for the current pay period. $1,500 2 Use the relevant tax table to find the amount to be withheld for HELP from Mark's gross earnings in step 1. $90 3 Divide the additional payment by the number of pay periods in the financial year. = $900 / 52 $17 4 Add the amount at step 3 to the gross earnings at step 1. = $1,500 + $17 $1,517 5 Use the relevant tax table to find the amount to be withheld for HELP from the amount at step 4. $91 6 Subtract the amount at step 2 from the amount at step 5. = $91 - $90 $1 7 Multiply the amount at step 6 by the number of pay periods in the financial year for the HELP withholding on the additional payment. = $1 × 52 $52 Withholding limit (including HELP component) Step Instructions Result 8 Multiply the additional payment being made in the current pay period by 49%. = $900 × 49% $441 9 Use the lesser amount of step 7 (combined) and step 8 for the withholding on the additional payment. Ignore any cents. Combine two step 7 results $312 + $52 = $364. This amount is used as it's less than step 8. $364 10 See below Calculate the total PAYG withholding amount for the current pay period (step 10) Add the amounts to be withheld: • PAYG withholding on gross earnings in the current pay period = $356 • HELP withholding on gross earnings in the current pay period = $90 • PAYG withholding on additional payment = $312 • HELP withholding on additional payment = $52 The total PAYG withholding is $810 ($356 + $90 + $312 + $52). Example 1 uses both: • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Combine two step 7 results $312 + $52 = $364. This amount is used as it's less than step 8. • PAYG withholding on gross earnings in the current pay period = $356 • HELP withholding on gross earnings in the current pay period = $90 • PAYG withholding on additional payment = $312 • HELP withholding on additional payment = $52 • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Example 2: Withholding from a missed payment using Method B(i) Robyn, who has an accumulated HELP debt, is due to receive a back payment relating to the current financial year following a pay rise. Since the first pay period of the current financial year and up until period 8, Robyn has earned $1,000 per week. From pay period 9 (her current pay period), Robyn will earn $1,100 per week. Robyn's back payment which covers the first eight pay periods of the current financial year will be paid to her in pay period 9. Therefore, Robyn will receive a back payment of $800 along with her normal gross earnings of $1,100. Using Method B(i), calculate the withholding amount for the current pay period 9 as follows: PAYG withholding component Step Instruction Result 1 Work out how much of Robyn's additional payment applied to each earlier pay period in the current financial year. In this example it is $800 over eight pay periods. = $800 / 8 $100 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get the total earnings for that period. = $1,000 + $100 $1,100 3 Use the relevant tax table to find the amount to be withheld from Robyn's total earnings for that period. $217 4 Subtract the amount previously withheld for the period from the amount at step 3. = $217 - $183 $34 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 8 × $34. $272 6 Use the relevant tax table to find the amount to be withheld from Robyn's gross earnings for the current pay period. $217 7 Add the withholding on the additional payment (step 5) to the withholding on Robyn's gross earnings (step 6) to work out the total withholding for the current pay period. = $217 + $272 $489 As Robyn has an accumulated HELP debt, her employer also needs to calculate a withholding amount from the back payment for HELP. They use the same method as they used to calculate withholding for the back payment in the first part of this example. HELP component Step Instruction Result 1 Work out how much of Robyn's additional payment applied to each earlier pay period in the current financial year. In this example it is $800 over eight pay periods. = $800 / 8 $100 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total normal earnings for that period. = $1,000 + $100 $1,100 3 Use the relevant tax table to find the amount to be withheld for HELP from Robyn's total normal earnings for that period. $44 4 Subtract the amount previously withheld for the period from the amount at step 3. = $44 - $0 $44 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the HELP withholding on the additional payments. As it is the same amount for each pay period in this example, it will be 8 × $44. $352 6 Use the relevant tax table to find the amount to be withheld for HELP from Robyn's gross earnings for the current pay period. $44 7 Add the HELP withholding on the additional payment (step 5) to the withholding on Robyn's gross earnings (step 6) to work out the withholding for HELP for the current period. = $44 + $352 $396 Calculate the total PAYG withholding amount for the current pay period Add the amounts to be withheld: • PAYG withholding on gross earnings in the current pay period = $217 • HELP withholding on gross earnings in the current pay period = $44 • PAYG withholding on additional payment = $272 • HELP withholding on additional payment = $352 The total PAYG withholding is $885 ($217 + $44 + $272 + $352). Example 2 uses: • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. • PAYG withholding on gross earnings in the current pay period = $217 • HELP withholding on gross earnings in the current pay period = $44 • PAYG withholding on additional payment = $272 • HELP withholding on additional payment = $352 • Higher Education Loan Program (HELP)/Trade Support Loan (TSL) weekly tax table (NAT 2173) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. Example 3: Withholding from a lump sum payment in arrears using Method B(ii) Mary is employed by Minercorp Pty Ltd and receives a fortnightly salary of $1,800. She is entitled to an allowance from her employer when working in remote areas. In 2013, Mary worked in a remote area for six months, but she was not paid this allowance. The total allowance that she should have been paid for this period was $2,480. Her employer discovers their oversight and agrees to pay her the $2,480 as a lump sum payment in arrears on 11 November 2015. Her gross earnings for pay period 10 is $1,800. Mary has received normal earnings (year to date) of $18,000 including the current pay. The amount Mary's payer must withhold from this payment is calculated using Method B(ii) as follows: Step Instruction Result 1 Calculate Mary's average total earnings over the current financial year to date (including current pay). = $18,000 / 10 $1,800 2 Use the relevant tax table to find the amount to be withheld from Mary's average total earnings in step 1. $296 3 Add all additional payments made to Mary in the current financial year if Method B(ii) was used to calculate the withholding, to the additional payment in the current pay. Mary's additional payment of $2,480 is then divided by the number of pay periods in the financial year. = $2,480 / 26 $95 4 Add the amount at step 3 to the average total earnings at step 1. = $1,800 + $95 $1,895 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $328 6 Subtract the amount at step 2 from the amount at step 5. = $328 - $296 $32 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $32 × 26 $832 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding on the additional payment. = $832 - $0 $832 9 Use the relevant tax table to find the amount to be withheld from the payee's gross earnings (excluding additional payments) for the current pay period. $296 10 Work out the total PAYG withholding for this pay period by adding the withholding on the additional payment (step 8) to the withholding on the gross earnings (step 9). = $832 + $296 $1,128 Example 3 uses Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015. The calculations are made using scale 2, with tax-free threshold. Example 4: Withholding using Method B(i) and Method B(ii) Pablo, who has an accumulated Financial Supplement debt, is employed by Macropayers Pty Ltd. On 1 September 2015, he received a salary increase of $5 an hour, taking his gross monthly salary from $4,800 to $5,600. His employer agreed that the increase would be backdated to 1 August 2014 and paid at the end of September 2015. This means that the back payment of salary covers 13 pay periods. The total back payment of salary is $10,400. To work out the total amount to be withheld from the back payment to Pablo, his employer will need to calculate the amount accrued in both: • the current financial year (2 pay periods from 1 July to August 2015) = $1,600 • a prior financial year (11 pay periods from 1 August 2014 to 30 June 2015) = $8,800. You don't need to complete some steps if both Methods B(i) and (ii) are used in the calculations. Method B(i) - PAYG withholding component Step Instruction Result 1 Work out how much of Pablo's additional payment applied to each earlier pay period in the current financial year. In this example it is $1,600 over two pay periods. = $1,600 / 2 $800 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total earnings for that period. = $4,800 + $800 $5,600 3 Use the relevant tax table to find the amount to be withheld from Pablo's total earnings for that period. $1,231 4 Subtract the amount previously withheld for the period from the amount at step 3. = $1,231 - $953 $278 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 2 × $278. $556 6 This step is not required as withholding is also calculated using Method B(ii). 7 This step is not required as withholding is also calculated using Method B(ii). As Pablo has an accumulated Financial Supplement debt, his employer will need to calculate a withholding amount from the back payment for SFSS. They use the same method as they used to calculate withholding for the back payment in the first part of this example. Method B(i) - SFSS component Step Instruction Result 1 Work out how much of Pablo's additional payment applied to each earlier pay period in the current financial year. In this example it is $1,600 over two pay periods. = $1,600 / 2 $800 2 For the first affected pay period, add the additional payment relevant to that period to the normal earnings previously paid to get total normal earnings for that period. = $4,800 + $800 $5,600 3 Use the relevant tax table to find the amount to be withheld for SFSS from Pablo's total normal gross earnings for that period. $169 4 Subtract the amount previously withheld for the period from the amount at step 3. = $169 - $95 $74 5 Repeat steps 2-4 for each pay period affected. Total the amounts calculated in step 4 for each pay period for the SFSS withholding on the additional payment. As it is the same amount for each pay period in this example, it will be 2 × $74. $148 6 This step is not required as withholding is also calculated using Method B(ii). 7 This step is not required as withholding is also calculated using Method B(ii). Method B(ii) - PAYG withholding component Step Instruction Result 1 Calculate Pablo's average total earnings, which in this example is = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 $5,600 2 Use the relevant tax table to find the amount to be withheld from Pablo's average total earnings in step 1. $1,231 3 Add all additional payments made to Pablo in current financial year where Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year. = $8,800 / 12 $733 4 Add the amount at step 3 to the average total earnings at step 1. = $5,600 + $733 $6,333 5 Use the relevant tax table to find the amount to be withheld from the amount at step 4. $1,482 6 Subtract the amount at step 2 from the amount at step 5. = $1,482 - $1,231 $251 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $251 × 12 $3,012 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding on the additional payment. = $3,012 - $0 $3,012 9 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 10 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 11 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. 12 This step is not required as final calculations for withholding limit and total withholding will be made after SFSS component is calculated. As Pablo has an accumulated Financial Supplement debt his employer will need to calculate the withholding amount from the back payment for SFSS. They use the same method as they used to calculate withholding for the back payment in the first part of this example. Method B(ii) - SFSS component Step Instruction Result 1 Calculate Pablo's average total earnings, which in this example is: = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 $5,600 2 Use the relevant tax table to find the amount to be withheld for SFSS on Pablo's average total earnings in step 1. $169 3 Add all additional payments made to Pablo in current financial year where Method B(ii) was used to calculate the withholding, to the additional payment in current pay. Then divide by the number of pay periods in the financial year. = $8,800 / 12 $733 4 Add the amount at step 3 to the average total earnings at step 1. = $5,600 + $733 $6,333 5 Use the relevant tax table to find the amount to be withheld for SFSS from the amount at step 4. $191 6 Subtract the amount at step 2 from the amount at step 5. = $191 - $169 $22 7 Multiply the amount in step 6 by the number of pay periods used in step 3. = $22 × 12 $264 8 Subtract any amounts previously withheld from additional payments in the current financial year if Method B(ii) was used, from the amount at step 7 for the withholding for SFSS on the additional payment. = $264 - $0 $264 Withholding limit (including SFSS component) Step Instruction Result 9 Multiply the additional payment being made using Method B(ii) in the current pay period by 49%. = $8,800 × 49% $4,312 10 Use the lesser amount of step 8 (combined) and step 9 for the withholding on the additional payment. Ignore any cents. Combine the two step 8 results. = $3,012 + $264 = $3,276 This amount is used as it's less than step 9. $3,276 11 This step is not applicable as total withholding for the current pay period will need to include amounts calculated in Method B(i). 12 This step is not applicable as total withholding for the current pay period will need to include amounts calculated in Method B(i). Calculate the total PAYG withholding amount for the current pay period Add the amounts to be withheld: Withholding on gross earnings current pay period • PAYG withholding on gross earnings in the current pay period = $1,231 • SFSS withholding on gross earnings in the current pay period = $169 Method B(i) withholding • PAYG withholding on additional payment for current financial year = $556 • SFSS withholding on additional payment for current financial year = $148 Method B(ii) withholding • PAYG withholding on additional payment for prior financial year = $3,012 • SFSS withholding on additional payment for prior financial year = $264 Total PAYG withholding is $5,380 ($1,231 + $169 + $556 + $148 + $3,012 + $264). Example 4 uses both: • Student Financial Supplement Scheme (SFSS) monthly tax table (NAT 3308) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. • the current financial year (2 pay periods from 1 July to August 2015) = $1,600 • a prior financial year (11 pay periods from 1 August 2014 to 30 June 2015) = $8,800. = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 = (salary earnings to date + current financial year additional payments to date) / number of pay periods = [($4,800 + $4,800 + $5,600) + $1,600] / 3 = $16,800 / 3 Combine the two step 8 results. = $3,012 + $264 = $3,276 This amount is used as it's less than step 9. • PAYG withholding on gross earnings in the current pay period = $1,231 • SFSS withholding on gross earnings in the current pay period = $169 • PAYG withholding on additional payment for current financial year = $556 • SFSS withholding on additional payment for current financial year = $148 • PAYG withholding on additional payment for prior financial year = $3,012 • SFSS withholding on additional payment for prior financial year = $264 • Student Financial Supplement Scheme (SFSS) monthly tax table (NAT 3308) effective from 1 July 2015 • Statement of formulas for calculating the amount to be withheld (NAT 1004) effective from 1 July 2015 - the calculations are made using scale 2, with tax-free threshold. For payments made on or after 1 October 2016 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 paragraph 12-80(b) of Schedule 1 to the TAA. Using this table You should use this table if you pay an annuity that was purchased with non-superannuation money, for example, an initial capital investment of personal cash. For annuities purchased using money rolled over from a super fund or super income stream payments, refer to Tax table for superannuation income streams . Working out the withholding amount To work out the withholding amount for an annuity payment purchased with non-superannuation money, you must: 1. Work out the amount of income to withhold from using the following formula: Annuity payment - [Deductible 27H amount / Number of instalments] 1. Work out the amount of income to withhold from using the following formula: Annuity payment - [Deductible 27H amount / Number of instalments] In this formula: • deductible amount represents the amount of the annuity payment that is exempt from tax. This amount is calculated using the formula found in section 27H of the Income Tax Assessment Act 1936. - Where the annuity is held in only one person's name, the following formula is used: • (Undeducted purchase price of the annuity - Residual capital value) / Term of annuity or life expectation factor • The undeducted purchase price is generally the amount of the initial capital investment. - Where the annuity is held or payable to 2 or more people, the deductible amount is apportioned depending on the amount each person received. • number of instalments is the number of instalments of the annuity payable in the income year. • deductible amount represents the amount of the annuity payment that is exempt from tax. This amount is calculated using the formula found in section 27H of the Income Tax Assessment Act 1936. - Where the annuity is held in only one person's name, the following formula is used: • (Undeducted purchase price of the annuity - Residual capital value) / Term of annuity or life expectation factor • The undeducted purchase price is generally the amount of the initial capital investment. - Where the annuity is held or payable to 2 or more people, the deductible amount is apportioned depending on the amount each person received. • number of instalments is the number of instalments of the annuity payable in the income year. - Where the annuity is held in only one person's name, the following formula is used: • (Undeducted purchase price of the annuity - Residual capital value) / Term of annuity or life expectation factor • The undeducted purchase price is generally the amount of the initial capital investment. - Where the annuity is held or payable to 2 or more people, the deductible amount is apportioned depending on the amount each person received. • (Undeducted purchase price of the annuity - Residual capital value) / Term of annuity or life expectation factor • The undeducted purchase price is generally the amount of the initial capital investment. The recipient of the annuity may request the ATO to calculate the deductible amount of their annuity using Request for determination of the deductible amount of UPP of an Australian pension or annuity . 2. Use the corresponding PAYG withholding tax table to find the withholding amount. The tax table you use depends on the period which the annuity is paid - for example, weekly or fortnightly. 2. Use the corresponding PAYG withholding tax table to find the withholding amount. The tax table you use depends on the period which the annuity is paid - for example, weekly or fortnightly. Some payees may be eligible to claim the seniors and pensioners tax offset (SAPTO). If your payee gives you a Withholding declaration indicating that they want to claim a SAPTO entitlement through PAYG withholding, use the Tax table for seniors and pensioners to work out the amount to withhold from the income amount calculated in step 1. Examples These examples use the PAYG withholding tax tables that apply from 1 October 2016. Example 1 Barbara has an annuity she purchased following the sale of a property. She receives annuity payments of $1,000 a week. The deductible amount for the 2016-17 income year is $5,200. 1. The amount income to withhold from: Annuity payment - [Deductible amount / Number of instalments] = $1,000 - [$5,200 / 52] = $1,000 - $100 = $900 2. Barbara is not eligible for SAPTO so the payer will use the Weekly tax table (NAT 1005) to work out how much to withhold from $900. Assuming Barbara is claiming the tax-free threshold, the amount to be withheld is $148. Example 2 Kenneth will receive fortnightly annuity payments on the 7th and 21st day of the month from 7 February 2017. For the remainder of the income year, the annuity will be $850 per fortnight. The annuity is indexed annually and the higher indexed amount is paid from 7 July 2017. Kenneth's deductible amount for a whole income year is $2,400 and for the part of the current income year that he is to receive an annuity; his deductible amount is $1,000. For the current income year, Kenneth will receive ten annuity instalments. 1. The amount of income to withhold from: 2. Annuity payment - [Deductible amount / Number of instalments] = $850 - [$1,000 / 10] = $850 - $100 = $750 2. Kenneth is not eligible for SAPTO so the payer will then use the Fortnightly tax table (NAT 1006) to work out how much to withhold from $750. Assuming Kenneth is claiming the tax-free threshold, the amount to be withheld is $8. Example 1 Barbara has an annuity she purchased following the sale of a property. She receives annuity payments of $1,000 a week. The deductible amount for the 2016-17 income year is $5,200. 1. The amount income to withhold from: Annuity payment - [Deductible amount / Number of instalments] = $1,000 - [$5,200 / 52] = $1,000 - $100 = $900 2. Barbara is not eligible for SAPTO so the payer will use the Weekly tax table (NAT 1005) to work out how much to withhold from $900. Assuming Barbara is claiming the tax-free threshold, the amount to be withheld is $148. 1. The amount income to withhold from: Annuity payment - [Deductible amount / Number of instalments] = $1,000 - [$5,200 / 52] = $1,000 - $100 = $900 2. Barbara is not eligible for SAPTO so the payer will use the Weekly tax table (NAT 1005) to work out how much to withhold from $900. Assuming Barbara is claiming the tax-free threshold, the amount to be withheld is $148. Example 2 Kenneth will receive fortnightly annuity payments on the 7th and 21st day of the month from 7 February 2017. For the remainder of the income year, the annuity will be $850 per fortnight. The annuity is indexed annually and the higher indexed amount is paid from 7 July 2017. Kenneth's deductible amount for a whole income year is $2,400 and for the part of the current income year that he is to receive an annuity; his deductible amount is $1,000. For the current income year, Kenneth will receive ten annuity instalments. 1. The amount of income to withhold from: 2. Annuity payment - [Deductible amount / Number of instalments] = $850 - [$1,000 / 10] = $850 - $100 = $750 2. Kenneth is not eligible for SAPTO so the payer will then use the Fortnightly tax table (NAT 1006) to work out how much to withhold from $750. Assuming Kenneth is claiming the tax-free threshold, the amount to be withheld is $8. 1. The amount of income to withhold from: 2. Annuity payment - [Deductible amount / Number of instalments] = $850 - [$1,000 / 10] = $850 - $100 = $750 2. Kenneth is not eligible for SAPTO so the payer will then use the Fortnightly tax table (NAT 1006) to work out how much to withhold from $750. Assuming Kenneth is claiming the tax-free threshold, the amount to be withheld is $8. Rounding of withholding amounts Withholding amounts calculated using the above formulas should be rounded to the nearest dollar. Results 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. Payment summaries You must issue a PAYG payment summary - individual non-business to the payee by 14 July following the end of the financial year in which you made payments to them. However, if your payee requests a payment summary from you during the financial year, you must provide it within 14 days of receiving their request. Tax file number (TFN) declarations The answers your payees provide on their Tax file number declaration (NAT 3092) 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 a payee, it will override the previous one. If a payee does not give you a valid Tax file number declaration within 14 days of starting a payer/payee relationship, you must complete a Tax file number declaration with all available details of the payee and send it to us. When a TFN has not been provided You must withhold 49% from any payment you make to a resident payee and 47% from any payment you make to a foreign resident payee (ignoring any cents), if it is an annuity payment that is not a superannuation income stream and all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. If a payee states at question 1 of the Tax file number declaration they have lodged a Tax file number - application or enquiry for individuals (NAT 1432) with us, they have 28 days to provide you with their TFN. If the payee has not given you their TFN within 28 days, you must withhold 49% for any annuity payment you make to a resident payee and 47% for any annuity payment you make to a foreign resident payee (ignoring any cents) unless we tell you not to. When a TFN has not been provided do not allow for tax offsets or Medicare levy adjustments. Do not withhold any amount for: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. For payments made on or after 1 October 2016 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 section 12-90 of Schedule 1 to the TAA. Using this table You should use this table if you pay an amount to an employee for unused leave on the termination of their employment or office. Unused leave payments on termination of employment or office include: • annual leave • holiday pay • leave loading • leave bonuses • long service leave. • annual leave • holiday pay • leave loading • leave bonuses • long service leave. Before calculating the amount to be withheld, you must work out if the payments are being made as a result of a genuine redundancy, invalidity or an early retirement scheme. For more information, refer to Withholding from unused leave payments on termination of employment . Working out the withholding amount When a TFN is provided The amount to withhold is calculated using the table below. If the post-17 August 1993 lump sum payment from normal termination is less than $300, you must withhold the lesser of the following: • the amount worked out using the table below • 32% of the payment. Payment type Reason Accrual dates Withholding rates Payment summary label Long service leave Normal termination (eg voluntary resignation, employment terminated due to inefficiency, retirement) Pre-16 August 1978 5% of total at marginal rates B 16 August 1978 to 17 August 1993 32% A Post-17 August 1993 Marginal rates Include in salary/wages Termination because of genuine redundancy, invalidity or early retirement scheme Pre-16 August 1978 5% of total at marginal rates B 16 August 1978 to 17 August 1993 32% A Post-17 August 1993 32% A Annual leave Normal termination (eg voluntary resignation, employment terminated due to inefficiency, retirement) Pre-18 August 1993 32% A Post-17 August 1993 Marginal rates Include in salary/wages Termination because of genuine redundancy, invalidity or early retirement scheme 32% A Annual leave loading Normal termination (eg voluntary resignation, employment terminated due to inefficiency, retirement) Pre-18 August 1993 32% A Post-17 August 1993 Marginal rates Include in salary/wages Termination because of genuine redundancy, invalidity or early retirement scheme 32% A • the amount worked out using the table below • 32% of the payment. Rounding of withholding amounts Withholding amounts calculated by applying this table are rounded to the nearest dollar. Results ending in 50 cents or higher are rounded upwards. If a TFN is not provided, ignore cents when calculating withholding amounts. Marginal rate calculation To work out the marginal rate, you must: 1. Using the relevant PAYG withholding tax table, work out the amount to withhold from your employee's normal gross earnings for a regular pay period. 2. Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments). 3. Ignore any cents. 4. Add the amount at step 3 to the normal gross earnings for a single pay period. 5. Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold for the amount at step 4. 6. Subtract the amount at step 1 from the amount at step 5. 7. Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments). 1. Using the relevant PAYG withholding tax table, work out the amount to withhold from your employee's normal gross earnings for a regular pay period. 2. Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments). 3. Ignore any cents. 4. Add the amount at step 3 to the normal gross earnings for a single pay period. 5. Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold for the amount at step 4. 6. Subtract the amount at step 1 from the amount at step 5. 7. Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments). Do not withhold any amount for: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. Normal gross earnings Normal gross earnings are all payments, except those relating to termination payments, received in the last full pay period of employment. This includes taxable allowances, overtime and bonuses. Therefore, your employee's normal gross earnings should be taken to be the earnings relating to the last full pay period worked. Where your employee's pay fluctuates significantly over a number of pay periods, we will accept an average of gross taxable earnings for the financial year to date over the number of pays received. Example The following example uses the Weekly tax table (NAT 1005) effective from 1 October 2016. Beth retires on 31 December 2016. She qualified for long service leave after 10 years of service, with further leave accruing on each completed year of service. She is not leaving because of genuine redundancy, invalidity or under an early retirement scheme. This week Beth also receives her normal weekly earnings of $800. She has quoted her TFN and has claimed the tax-free threshold. Therefore, the amount withheld is calculated using column 2 of the Weekly tax table. Details of payment for long service leave Pre-16 August 1978 component = $3,690.00 16 August 1978 to 17 August 1993 component = $7,700.00 Post-17 August 1993 component = $10,890.00 Amounts to be withheld 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) $113 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) $187 6 Subtract the amount at step 1 from the amount at step 5 ($187 - $113) $74 7 Multiply the amount at step 6 by the number of normal pay periods in 12 months ($74 x 52) $3,848 The amount to be withheld from the three components of Beth's unused long service leave payments is $6,312 ($2,464 + $3,848). See Rounding of withholding amounts. The total amount to be withheld is then $6,425 ($113 withholding from normal earnings plus $6,312 withholding from long service leave). Example The following example uses the Weekly tax table (NAT 1005) effective from 1 October 2016. Beth retires on 31 December 2016. She qualified for long service leave after 10 years of service, with further leave accruing on each completed year of service. She is not leaving because of genuine redundancy, invalidity or under an early retirement scheme. This week Beth also receives her normal weekly earnings of $800. She has quoted her TFN and has claimed the tax-free threshold. Therefore, the amount withheld is calculated using column 2 of the Weekly tax table. Details of payment for long service leave Pre-16 August 1978 component = $3,690.00 16 August 1978 to 17 August 1993 component = $7,700.00 Post-17 August 1993 component = $10,890.00 Amounts to be withheld 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) $113 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) $187 6 Subtract the amount at step 1 from the amount at step 5 ($187 - $113) $74 7 Multiply the amount at step 6 by the number of normal pay periods in 12 months ($74 x 52) $3,848 The amount to be withheld from the three components of Beth's unused long service leave payments is $6,312 ($2,464 + $3,848). See Rounding of withholding amounts. The total amount to be withheld is then $6,425 ($113 withholding from normal earnings plus $6,312 withholding from long service leave). When a TFN has not been provided 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. For more information refer to PAYG withholding - varying your PAYG withholding Tax file number declaration Any Tax file number declaration (NAT 3092) your employee provides while they were working for you will only be effective: • for the period that they were working for you • 12 months after you make the last payment. • for the period that they were working for you • 12 months after you make the last payment. The coefficients in this schedule should be used together with the Statement of formulas for calculating amounts to be withheld . For payments made from 1 October 2016 to 30 June 2017 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), 12-C (except sections 12-85 and 12-90) and 12-D of Schedule 1 to the TAA. Using this schedule You should use this schedule if you develop your own payroll software package. Formulas and coefficients are used for calculating weekly withholding amounts for employees who have a: • Higher Education Loan Program (HELP) debt • Student Start-up Loan (SSL) debt • Trade Support Loan (TSL) debt • Financial Supplement (FS) debt. • Higher Education Loan Program (HELP) debt • Student Start-up Loan (SSL) debt • Trade Support Loan (TSL) debt • Financial Supplement (FS) debt. See also: • Our Tax withheld calculator can help you work out the correct amount of tax to withhold from payments to most employees. • You can download a printable version of Statement of formulas for calculating HELP, SSL, TSL and SFSS components (PDF, 733KB) . • Our Tax withheld calculator can help you work out the correct amount of tax to withhold from payments to most employees. • You can download a printable version of Statement of formulas for calculating HELP, SSL, TSL and SFSS components (PDF, 733KB) . Using a formula The withholding amounts for employees who have a HELP/SSL/TSL or Financial Supplement debt can be expressed in a mathematical form. If you have developed your own payroll software package, you can use the formulas and component rates outlined below. The formulas comprise linear equations of the form y = ax, where: • y is the weekly HELP/SSL/TSL or SFSS component • x is the weekly earnings - or weekly equivalent of earnings - rounded down to whole dollars plus 99 cents • a is the value of the component rate as shown in the following tables. • y is the weekly HELP/SSL/TSL or SFSS component • x is the weekly earnings - or weekly equivalent of earnings - rounded down to whole dollars plus 99 cents • a is the value of the component rate as shown in the following tables. HELP/SSL/TSL component rates Tax-free threshold claimed or foreign resident Weekly earnings - x $ Component rate - a % 0 - 1,054.99 - 1,055.00 - 1,174.99 4.0 1,175.00 - 1,294.99 4.5 1,295.00 - 1,362.99 5.0 1,363.00 - 1,464.99 5.5 1,465.00 - 1,586.99 6.0 1,587.00 - 1,670.99 6.5 1,671.00 - 1,838.99 7.0 1,839.00 - 1,958.99 7.5 1,959.00 and over 8.0 No tax-free threshold claimed Weekly earnings - x $ Component rate - a % 0 - 704.99 - 705.00 - 824.99 4.0 825.00 - 944.99 4.5 945.00 - 1,012.99 5.0 1,013.00 - 1,114.99 5.5 1,115.00 - 1,236.99 6.0 1,237.00 - 1,320.99 6.5 1,321.00 - 1,488.99 7.0 1,489.00 - 1,608.99 7.5 1,609.00 and over 8.0 SFSS component rates Tax-free threshold claimed or foreign resident Weekly earnings - x $ Component rate - a % 0 - 1,054.99 - 1,055.00 - 1,294.99 2.0 1,295.00 - 1,838.99 3.0 1,839.00 and over 4.0 No tax-free threshold claimed Weekly earnings - x $ Component rate - a % 0 - 704.99 - 705.00 - 944.99 2.0 945.00 - 1,488.99 3.0 1,489.00 and over 4.0 Calculating fortnightly, monthly or quarterly withholding 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. • 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 - determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by two • monthly - determine 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 - determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by 13. • fortnightly - determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by two • monthly - determine 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 - determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by 13. When to work out the HELP/SSL/TSL component You will need to calculate the HELP/SSL/TSL component when your employee has given you a Tax file number declaration or Withholding declaration and has: • answered yes to the question 'Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?' • not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income • claimed the tax-free threshold or is a foreign resident with earnings of one of the following: - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. • answered yes to the question 'Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?' • not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income • claimed the tax-free threshold or is a foreign resident with earnings of one of the following: - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. If your employee has not claimed the tax-free threshold, the HELP/SSL/TSL component is calculated on earnings of: • $705 or more if paid weekly • $1,410 or more if paid fortnightly • $3,055 or more if paid monthly • $9,165 or more if paid quarterly. • $705 or more if paid weekly • $1,410 or more if paid fortnightly • $3,055 or more if paid monthly • $9,165 or more if paid quarterly. You must withhold the HELP/SSL/TSL component from all your employee's earnings, including taxable allowances, bonuses and commissions. Examples 1. Employee has claimed the tax-free threshold and has weekly earnings of $1,095.84. HELP/SSL/TSL component = $1,095.99 × 4% = $44.00 rounded to the nearest dollar. 2. Employee has claimed the tax-free threshold and has fortnightly earnings of $2,355.78. Weekly equivalent of $2,355.78 = $1,177.99 ($2,355.78 divided by two, ignoring cents and adding 99 cents). Weekly HELP/SSL/TSL component = $1,177.99 × 4.5% = $53.00 rounded to the nearest dollar. Fortnightly HELP/SSL/TSL component = $106.00 ($53.00 × 2). 3. Employee has claimed the tax-free threshold and has monthly earnings of $5,488.45. Weekly equivalent of $5,488.45 = $1,266.99 ($5,488.45 × 3/13, ignoring cents and adding 99 cents). Weekly HELP/SSL/TSL component = $1,266.99 × 4.5% = $57.00 rounded to the nearest dollar. Monthly HELP/SSL/TSL component = $247.00 ($57.00 × 13/3, rounded to the nearest dollar). 1. Employee has claimed the tax-free threshold and has weekly earnings of $1,095.84. HELP/SSL/TSL component = $1,095.99 × 4% = $44.00 rounded to the nearest dollar. 2. Employee has claimed the tax-free threshold and has fortnightly earnings of $2,355.78. Weekly equivalent of $2,355.78 = $1,177.99 ($2,355.78 divided by two, ignoring cents and adding 99 cents). Weekly HELP/SSL/TSL component = $1,177.99 × 4.5% = $53.00 rounded to the nearest dollar. Fortnightly HELP/SSL/TSL component = $106.00 ($53.00 × 2). 3. Employee has claimed the tax-free threshold and has monthly earnings of $5,488.45. Weekly equivalent of $5,488.45 = $1,266.99 ($5,488.45 × 3/13, ignoring cents and adding 99 cents). Weekly HELP/SSL/TSL component = $1,266.99 × 4.5% = $57.00 rounded to the nearest dollar. Monthly HELP/SSL/TSL component = $247.00 ($57.00 × 13/3, rounded to the nearest dollar). When to work out the SFSS component You will need to calculate the SFSS component when your employee has given you a Tax file number declaration or Withholding declaration and has: • answered yes to the question 'Do you have a Financial Supplement debt?' • not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income • claimed the tax-free threshold or is a foreign resident with earnings of one of the following: - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. • answered yes to the question 'Do you have a Financial Supplement debt?' • not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income • claimed the tax-free threshold or is a foreign resident with earnings of one of the following: - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. - $1,055 or more if paid weekly - $2,110 or more if paid fortnightly - $4,571.67 or more if paid monthly - $13,715 or more if paid quarterly. If your employee has not claimed the tax-free threshold, the SFSS component is calculated on earnings of: • $705 or more if paid weekly • $1,410 or more if paid fortnightly • $3,055 or more if paid monthly • $9,165 or more if paid quarterly. • $705 or more if paid weekly • $1,410 or more if paid fortnightly • $3,055 or more if paid monthly • $9,165 or more if paid quarterly. You must withhold the SFSS component from all your employee's earnings, including taxable allowances, bonuses and commissions. Examples 1. Employee has claimed the tax-free threshold and has weekly earnings of $1,238.24. SFSS component = $1,238.99 × 2% = $25.00 rounded to the nearest dollar. 2. Employee has claimed the tax-free threshold and has fortnightly earnings of $2,311.59. Weekly equivalent of $2,311.59 = $1,155.99 ($2,311.59 divided by two, ignoring cents and adding 99 cents). Weekly SFSS component = $1,155.99 × 2% = $23.00 rounded to the nearest dollar. Fortnightly SFSS component = $46.00 ($23.00 × 2). 3. Employee has claimed the tax-free threshold and has monthly earnings of $5,689.21. Weekly equivalent of $5,689.21 = $1,312.99 ($5,689.21 × 3/13, ignoring cents and adding 99 cents). Weekly SFSS component = $1,312.99 × 3% = $39.00 rounded to the nearest dollar. Monthly SFSS component = $169.00 ($39.00 × 13/3, rounded to the nearest dollar). 1. Employee has claimed the tax-free threshold and has weekly earnings of $1,238.24. SFSS component = $1,238.99 × 2% = $25.00 rounded to the nearest dollar. 2. Employee has claimed the tax-free threshold and has fortnightly earnings of $2,311.59. Weekly equivalent of $2,311.59 = $1,155.99 ($2,311.59 divided by two, ignoring cents and adding 99 cents). Weekly SFSS component = $1,155.99 × 2% = $23.00 rounded to the nearest dollar. Fortnightly SFSS component = $46.00 ($23.00 × 2). 3. Employee has claimed the tax-free threshold and has monthly earnings of $5,689.21. Weekly equivalent of $5,689.21 = $1,312.99 ($5,689.21 × 3/13, ignoring cents and adding 99 cents). Weekly SFSS component = $1,312.99 × 3% = $39.00 rounded to the nearest dollar. Monthly SFSS component = $169.00 ($39.00 × 13/3, rounded to the nearest dollar). Note: Do not withhold any amount for HELP/SSL/TSL or Financial Supplement debts from lump sum termination payments. Rounding of withholding amounts to the nearest dollar Withholding amounts calculated as a result of applying the formulas are rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Accounting software Software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data. 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. Coefficients to work out the weekly amounts to withhold including the HELP/SSL/TSL component Your employee's total withholding, including the HELP/SSL/TSL component, can be calculated using the formula and coefficients stated below. Using a formula The formulas comprise linear equations of the form y = ax - b, where: • y is the weekly withholding amount expressed in dollars • 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). • y is the weekly withholding amount expressed in dollars • 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). If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a HELP/SSL/TSL debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the HELP/SSL/TSL component and one will not - for example, name one 'scale 2' and the other 'scale 22'. The HELP/SSL/TSL component does not apply if the employee has not provided a tax file number (TFN). For scales without the HELP/SSL/TSL component, refer to Statement of formulas for calculating amounts to be withheld . Where tax-free threshold not claimed in Tax file number declaration - Scale 1 WITH HELP/SSL/TSL Debt Weekly earnings (x) less than $ a b 60 0.1900 0.1900 361 0.2332 2.6045 705 0.3477 44.0006 825 0.3877 44.0006 932 0.3927 44.0006 945 0.3900 41.4841 1013 0.3950 41.4841 1115 0.4000 41.4841 1237 0.4050 41.4841 1321 0.4100 41.4841 1323 0.4150 41.4841 1489 0.4600 101.0225 1609 0.4650 101.0225 3111 0.4700 101.0225 3111 & over 0.5700 412.1764 Where employee has claimed the tax-free threshold in Tax file number declaration - Scale 2 WITH HELP/SSL/TSL Debt Weekly earnings (x) less than $ a b 355 - - 410 0.1900 67.4635 512 0.2900 108.4923 711 0.2100 67.4646 1055 0.3477 165.4435 1175 0.3877 165.4435 1282 0.3927 165.4435 1295 0.3900 161.9819 1363 0.3950 161.9819 1465 0.4000 161.9819 1587 0.4050 161.9819 1671 0.4150 161.9819 1673 0.4150 161.9819 1839 0.4600 237.2704 1959 0.4650 237.2704 3461 0.4700 237.2704 3461 & over 0.5700 583.4242 Foreign residents - Scale 3 WITH HELP/SSL/TSL Debt Weekly earnings (x) less than $ a b 1055 0.3250 0.3250 1175 0.3650 0.3250 1295 0.3700 0.3250 1363 0.3750 0.3250 1465 0.3800 0.3250 1587 0.3850 0.3250 1671 0.3950 0.3250 1673 0.3950 0.3250 1839 0.4400 75.2885 1959 0.4450 75.2885 3461 0.4500 75.2885 3461 & over 0.5500 421.4423 Where employee claimed FULL exemption from Medicare levy in Medicare levy variation declaration - Scale 5 WITH HELP/SSL/TSL Debt Weekly earnings (x) less than $ a b 355 - - 711 0.1900 67.4635 1055 0.3277 165.4423 1175 0.3677 165.4423 1282 0.3727 165.4423 1295 0.3700 161.9808 1363 0.3750 161.9808 1465 0.3800 161.9808 1587 0.3850 161.9808 1671 0.3950 161.9808 1673 0.3950 161.9808 1839 0.4400 237.2692 1959 0.4450 237.2692 3461 0.4500 237.2692 3461 & over 0.5500 583.4231 Where employee claimed HALF exemption from Medicare levy in Medicare levy variation declaration - Scale 6 WITH HELP/SSL/TSL Debt Weekly earnings (x) less than $ a b 355 - - 692 0.1900 67.4635 711 0.2400 102.0798 865 0.3777 200.0587 1055 0.3377 165.4425 1175 0.3777 165.4425 1282 0.3827 165.4425 1295 0.3800 161.9810 1363 0.3850 161.9810 1465 0.3900 161.9810 1587 0.3950 161.9810 1671 0.4050 161.9810 1673 0.4050 161.9810 1839 0.4500 237.2694 1959 0.4550 237.2694 3461 0.4600 237.2694 3461 & over 0.5600 583.4233 Withholding amounts including the HELP/SSL/TSL component worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG and HELP/SSL/TSL tax tables. The differences result from the rounding of components. Sample data With tax-free threshold Amounts to be withheld Weekly earnings $ Weekly HELP/SSL/TSL component $ Fortnightly earnings $ Fortnightly HELP/SSL/TSL component $ Monthly earnings $ Monthly HELP/SSL/TSL component $ 1055 42.00 2110 84.00 4571.67 182.00 1056 42.00 2112 84.00 4576.00 182.00 1174 47.00 2348 94.00 5087.33 204.00 1175 53.00 2350 106.00 5091.67 230.00 1176 53.00 2352 106.00 5096.00 230.00 1294 58.00 2588 116.00 5607.33 251.00 1295 65.00 2590 130.00 5611.67 282.00 1362 68.00 2724 136.00 5902.00 295.00 1363 75.00 2726 150.00 5906.33 325.00 1364 75.00 2728 150.00 5910.67 325.00 1464 81.00 2928 162.00 6344.00 351.00 1465 88.00 2930 176.00 6348.33 381.00 1466 88.00 2932 176.00 6352.67 381.00 1586 95.00 3172 190.00 6872.67 412.00 1587 103.00 3174 206.00 6877.00 446.00 1670 109.00 3340 218.00 7236.67 472.00 1671 117.00 3342 234.00 7241.00 507.00 1838 129.00 3676 258.00 7964.67 559.00 1839 138.00 3678 276.00 7969.00 598.00 1958 147.00 3916 294.00 8484.67 637.00 1959 157.00 3918 314.00 8489.00 680.00 Weekly withholding amounts including HELP/SSL/TSL component Amounts to be withheld Weekly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 59 11.00 - 19.00 - - 60 12.00 - 19.00 - - 116 25.00 - 38.00 - - 117 25.00 - 38.00 - - 249 56.00 - 81.00 - - 250 56.00 - 81.00 - - 354 80.00 - 115.00 - - 355 80.00 - 115.00 - - 360 82.00 1.00 117.00 1.00 1.00 361 82.00 1.00 117.00 1.00 1.00 409 99.00 10.00 133.00 10.00 10.00 410 99.00 11.00 133.00 11.00 11.00 511 134.00 40.00 166.00 30.00 30.00 512 134.00 40.00 166.00 30.00 30.00 691 197.00 78.00 225.00 64.00 64.00 692 197.00 78.00 225.00 64.00 64.00 704 201.00 81.00 229.00 66.00 67.00 705 230.00 81.00 229.00 67.00 67.00 710 232.00 82.00 231.00 68.00 69.00 711 232.00 82.00 231.00 68.00 69.00 824 276.00 121.00 268.00 105.00 112.00 825 280.00 122.00 268.00 105.00 112.00 865 296.00 136.00 281.00 118.00 127.00 866 296.00 136.00 281.00 119.00 127.00 931 322.00 159.00 303.00 140.00 149.00 932 322.00 159.00 303.00 140.00 150.00 944 327.00 163.00 307.00 144.00 154.00 945 332.00 163.00 307.00 145.00 154.00 1012 359.00 187.00 329.00 167.00 177.00 1013 364.00 187.00 329.00 167.00 177.00 1054 381.00 201.00 343.00 180.00 191.00 1055 381.00 244.00 385.00 223.00 233.00 1114 405.00 267.00 407.00 245.00 256.00 1115 410.00 267.00 407.00 245.00 256.00 1174 434.00 290.00 429.00 267.00 278.00 1175 435.00 296.00 435.00 273.00 285.00 1236 459.00 320.00 457.00 296.00 308.00 1237 466.00 321.00 458.00 296.00 308.00 1281 484.00 338.00 474.00 312.00 325.00 1282 485.00 338.00 474.00 313.00 326.00 1294 489.00 343.00 479.00 317.00 330.00 1295 490.00 350.00 486.00 324.00 337.00 1321 507.00 360.00 495.00 334.00 347.00 1322 508.00 361.00 496.00 334.00 347.00 1323 508.00 361.00 496.00 335.00 348.00 1362 526.00 376.00 511.00 349.00 363.00 1363 526.00 384.00 518.00 356.00 370.00 1365 527.00 384.00 519.00 357.00 371.00 1464 573.00 424.00 556.00 395.00 409.00 1465 573.00 432.00 564.00 402.00 417.00 1489 592.00 441.00 573.00 412.00 427.00 1586 637.00 481.00 611.00 449.00 465.00 1587 637.00 489.00 619.00 457.00 473.00 1608 647.00 498.00 627.00 466.00 482.00 1609 656.00 498.00 628.00 466.00 482.00 1670 684.00 523.00 651.00 490.00 506.00 1671 685.00 532.00 660.00 498.00 515.00 1672 685.00 532.00 661.00 499.00 516.00 1673 686.00 533.00 661.00 499.00 516.00 1838 763.00 609.00 734.00 572.00 590.00 1839 764.00 618.00 744.00 582.00 600.00 1844 766.00 621.00 746.00 584.00 602.00 1845 767.00 621.00 746.00 584.00 603.00 1958 820.00 674.00 796.00 634.00 654.00 1959 820.00 684.00 807.00 645.00 664.00 2119 895.00 759.00 879.00 717.00 738.00 2120 896.00 760.00 879.00 717.00 738.00 2490 1070.00 933.00 1046.00 884.00 909.00 2491 1070.00 934.00 1046.00 884.00 909.00 2652 1146.00 1010.00 1119.00 957.00 983.00 2653 1146.00 1010.00 1119.00 957.00 984.00 2736 1185.00 1049.00 1156.00 994.00 1022.00 2737 1186.00 1050.00 1157.00 995.00 1022.00 2898 1262.00 1125.00 1229.00 1067.00 1096.00 2899 1262.00 1126.00 1230.00 1068.00 1097.00 2913 1269.00 1132.00 1236.00 1074.00 1103.00 2914 1269.00 1133.00 1236.00 1074.00 1104.00 3110 1361.00 1225.00 1325.00 1163.00 1194.00 3111 1362.00 1225.00 1325.00 1163.00 1194.00 3461 1561.00 1390.00 1483.00 1321.00 1355.00 Fortnightly withholding amounts including HELP/SSL/TSL component Amounts to be withheld Fortnightly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 118 22.00 - 38.00 - - 120 24.00 - 38.00 - - 232 50.00 - 76.00 - - 234 50.00 - 76.00 - - 498 112.00 - 162.00 - - 500 112.00 - 162.00 - - 708 160.00 - 230.00 - - 710 160.00 - 230.00 - - 720 164.00 2.00 234.00 2.00 2.00 722 164.00 2.00 234.00 2.00 2.00 818 198.00 20.00 266.00 20.00 20.00 820 198.00 22.00 266.00 22.00 22.00 1022 268.00 80.00 332.00 60.00 60.00 1024 268.00 80.00 332.00 60.00 60.00 1382 394.00 156.00 450.00 128.00 128.00 1384 394.00 156.00 450.00 128.00 128.00 1408 402.00 162.00 458.00 132.00 134.00 1410 460.00 162.00 458.00 134.00 134.00 1420 464.00 164.00 462.00 136.00 138.00 1422 464.00 164.00 462.00 136.00 138.00 1648 552.00 242.00 536.00 210.00 224.00 1650 560.00 244.00 536.00 210.00 224.00 1730 592.00 272.00 562.00 236.00 254.00 1732 592.00 272.00 562.00 238.00 254.00 1862 644.00 318.00 606.00 280.00 298.00 1864 644.00 318.00 606.00 280.00 300.00 1888 654.00 326.00 614.00 288.00 308.00 1890 664.00 326.00 614.00 290.00 308.00 2024 718.00 374.00 658.00 334.00 354.00 2026 728.00 374.00 658.00 334.00 354.00 2108 762.00 402.00 686.00 360.00 382.00 2110 762.00 488.00 770.00 446.00 466.00 2228 810.00 534.00 814.00 490.00 512.00 2230 820.00 534.00 814.00 490.00 512.00 2348 868.00 580.00 858.00 534.00 556.00 2350 870.00 592.00 870.00 546.00 570.00 2472 918.00 640.00 914.00 592.00 616.00 2474 932.00 642.00 916.00 592.00 616.00 2562 968.00 676.00 948.00 624.00 650.00 2564 970.00 676.00 948.00 626.00 652.00 2588 978.00 686.00 958.00 634.00 660.00 2590 980.00 700.00 972.00 648.00 674.00 2642 1014.00 720.00 990.00 668.00 694.00 2644 1016.00 722.00 992.00 668.00 694.00 2646 1016.00 722.00 992.00 670.00 696.00 2724 1052.00 752.00 1022.00 698.00 726.00 2726 1052.00 768.00 1036.00 712.00 740.00 2730 1054.00 768.00 1038.00 714.00 742.00 2928 1146.00 848.00 1112.00 790.00 818.00 2930 1146.00 864.00 1128.00 804.00 834.00 2978 1184.00 882.00 1146.00 824.00 854.00 3172 1274.00 962.00 1222.00 898.00 930.00 3174 1274.00 978.00 1238.00 914.00 946.00 3216 1294.00 996.00 1254.00 932.00 964.00 3218 1312.00 996.00 1256.00 932.00 964.00 3340 1368.00 1046.00 1302.00 980.00 1012.00 3342 1370.00 1064.00 1320.00 996.00 1030.00 3344 1370.00 1064.00 1322.00 998.00 1032.00 3346 1372.00 1066.00 1322.00 998.00 1032.00 3676 1526.00 1218.00 1468.00 1144.00 1180.00 3678 1528.00 1236.00 1488.00 1164.00 1200.00 3688 1532.00 1242.00 1492.00 1168.00 1204.00 3690 1534.00 1242.00 1492.00 1168.00 1206.00 3916 1640.00 1348.00 1592.00 1268.00 1308.00 3918 1640.00 1368.00 1614.00 1290.00 1328.00 4238 1790.00 1518.00 1758.00 1434.00 1476.00 4240 1792.00 1520.00 1758.00 1434.00 1476.00 4980 2140.00 1866.00 2092.00 1768.00 1818.00 4982 2140.00 1868.00 2092.00 1768.00 1818.00 5304 2292.00 2020.00 2238.00 1914.00 1966.00 5306 2292.00 2020.00 2238.00 1914.00 1968.00 5472 2370.00 2098.00 2312.00 1988.00 2044.00 5474 2372.00 2100.00 2314.00 1990.00 2044.00 5796 2524.00 2250.00 2458.00 2134.00 2192.00 5798 2524.00 2252.00 2460.00 2136.00 2194.00 5826 2538.00 2264.00 2472.00 2148.00 2206.00 5828 2538.00 2266.00 2472.00 2148.00 2208.00 6220 2722.00 2450.00 2650.00 2326.00 2388.00 6222 2724.00 2450.00 2650.00 2326.00 2388.00 6922 3122.00 2780.00 2966.00 2642.00 2710.00 Monthly withholding amounts including HELP/SSL/TSL component Amounts to be withheld Monthly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 255.67 48.00 - 82.00 - - 260.00 52.00 - 82.00 - - 502.67 108.00 - 165.00 - - 507.00 108.00 - 165.00 - - 1079.00 243.00 - 351.00 - - 1083.33 243.00 - 351.00 - - 1534.00 347.00 - 498.00 - - 1538.33 347.00 - 498.00 - - 1560.00 355.00 4.00 507.00 4.00 4.00 1564.33 355.00 4.00 507.00 4.00 4.00 1772.33 429.00 43.00 576.00 43.00 43.00 1776.67 429.00 48.00 576.00 48.00 48.00 2214.33 581.00 173.00 719.00 130.00 130.00 2218.67 581.00 173.00 719.00 130.00 130.00 2994.33 854.00 338.00 975.00 277.00 277.00 2998.67 854.00 338.00 975.00 277.00 277.00 3050.67 871.00 351.00 992.00 286.00 290.00 3055.00 997.00 351.00 992.00 290.00 290.00 3076.67 1005.00 355.00 1001.00 295.00 299.00 3081.00 1005.00 355.00 1001.00 295.00 299.00 3570.67 1196.00 524.00 1161.00 455.00 485.00 3575.00 1213.00 529.00 1161.00 455.00 485.00 3748.33 1283.00 589.00 1218.00 511.00 550.00 3752.67 1283.00 589.00 1218.00 516.00 550.00 4034.33 1395.00 689.00 1313.00 607.00 646.00 4038.67 1395.00 689.00 1313.00 607.00 650.00 4090.67 1417.00 706.00 1330.00 624.00 667.00 4095.00 1439.00 706.00 1330.00 628.00 667.00 4385.33 1556.00 810.00 1426.00 724.00 767.00 4389.67 1577.00 810.00 1426.00 724.00 767.00 4567.33 1651.00 871.00 1486.00 780.00 828.00 4571.67 1651.00 1057.00 1668.00 966.00 1010.00 4827.33 1755.00 1157.00 1764.00 1062.00 1109.00 4831.67 1777.00 1157.00 1764.00 1062.00 1109.00 5087.33 1881.00 1257.00 1859.00 1157.00 1205.00 5091.67 1885.00 1283.00 1885.00 1183.00 1235.00 5356.00 1989.00 1387.00 1980.00 1283.00 1335.00 5360.33 2019.00 1391.00 1985.00 1283.00 1335.00 5551.00 2097.00 1465.00 2054.00 1352.00 1408.00 5555.33 2102.00 1465.00 2054.00 1356.00 1413.00 5607.33 2119.00 1486.00 2076.00 1374.00 1430.00 5611.67 2123.00 1517.00 2106.00 1404.00 1460.00 5724.33 2197.00 1560.00 2145.00 1447.00 1504.00 5728.67 2201.00 1564.00 2149.00 1447.00 1504.00 5733.00 2201.00 1564.00 2149.00 1452.00 1508.00 5902.00 2279.00 1629.00 2214.00 1512.00 1573.00 5906.33 2279.00 1664.00 2245.00 1543.00 1603.00 5915.00 2284.00 1664.00 2249.00 1547.00 1608.00 6344.00 2483.00 1837.00 2409.00 1712.00 1772.00 6348.33 2483.00 1872.00 2444.00 1742.00 1807.00 6452.33 2565.00 1911.00 2483.00 1785.00 1850.00 6872.67 2760.00 2084.00 2648.00 1946.00 2015.00 6877.00 2760.00 2119.00 2682.00 1980.00 2050.00 6968.00 2804.00 2158.00 2717.00 2019.00 2089.00 6972.33 2843.00 2158.00 2721.00 2019.00 2089.00 7236.67 2964.00 2266.00 2821.00 2123.00 2193.00 7241.00 2968.00 2305.00 2860.00 2158.00 2232.00 7245.33 2968.00 2305.00 2864.00 2162.00 2236.00 7249.67 2973.00 2310.00 2864.00 2162.00 2236.00 7964.67 3306.00 2639.00 3181.00 2479.00 2557.00 7969.00 3311.00 2678.00 3224.00 2522.00 2600.00 7990.67 3319.00 2691.00 3233.00 2531.00 2609.00 7995.00 3324.00 2691.00 3233.00 2531.00 2613.00 8484.67 3553.00 2921.00 3449.00 2747.00 2834.00 8489.00 3553.00 2964.00 3497.00 2795.00 2877.00 9182.33 3878.00 3289.00 3809.00 3107.00 3198.00 9186.67 3883.00 3293.00 3809.00 3107.00 3198.00 10790.00 4637.00 4043.00 4533.00 3831.00 3939.00 10794.33 4637.00 4047.00 4533.00 3831.00 3939.00 11492.00 4966.00 4377.00 4849.00 4147.00 4260.00 11496.33 4966.00 4377.00 4849.00 4147.00 4264.00 11856.00 5135.00 4546.00 5009.00 4307.00 4429.00 11860.33 5139.00 4550.00 5014.00 4312.00 4429.00 12558.00 5469.00 4875.00 5326.00 4624.00 4749.00 12562.33 5469.00 4879.00 5330.00 4628.00 4754.00 12623.00 5499.00 4905.00 5356.00 4654.00 4780.00 12627.33 5499.00 4910.00 5356.00 4654.00 4784.00 13476.67 5898.00 5308.00 5742.00 5040.00 5174.00 13481.00 5902.00 5308.00 5742.00 5040.00 5174.00 14997.67 6764.00 6023.00 6426.00 5724.00 5872.00 Coefficients to work out the weekly amounts to withhold including the SFSS component Your employee's total withholding, including the SFSS component, can be calculated using the formula and coefficients stated below. Using a formula The formulas comprise linear equations of the form y = ax - b, where: • y is the weekly withholding amount expressed in dollars • 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). • y is the weekly withholding amount expressed in dollars • 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). If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a Financial Supplement debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the SFSS component and one will not - for example, name one 'scale 2' and the other 'scale 22'. The SFSS component does not apply if the employee has not provided a tax file number (TFN). For scales without the SFSS component, refer to Statement of formulas for calculating amounts to be withheld . Where tax-free threshold not claimed in Tax file number declaration - Scale 1 WITH FS Debt Weekly earnings (x) less than $ a b 60 0.1900 0.1900 361 0.2332 2.6045 705 0.3477 44.0006 932 0.3677 44.0006 945 0.3650 41.4841 1323 0.3750 41.4841 1489 0.4200 101.0225 3111 0.4300 101.0225 3111 & over 0.5300 412.1764 Where employee has claimed the tax-free threshold in Tax file number declaration - Scale 2 WITH FS Debt Weekly earnings (x) less than $ a b 355 - - 410 0.1900 67.4635 512 0.2900 108.4923 711 0.2100 67.4646 1055 0.3477 165.4435 1282 0.3677 165.4435 1295 0.3650 161.9819 1673 0.3750 161.9819 1839 0.4200 237.2704 3461 0.4300 237.2704 3461 & over 0.5300 583.4242 Foreign residents - Scale 3 WITH FS Debt Weekly earnings (x) less than $ a b 1055 0.3250 0.3250 1295 0.3450 0.3250 1673 0.3550 0.3250 1839 0.4000 75.2885 3461 0.4100 75.2885 3461 & over 0.5100 421.4423 Where employee claimed FULL exemption from Medicare levy in Medicare levy variation declaration - Scale 5 WITH FS Debt Weekly earnings (x) less than $ a b 355 - - 711 0.1900 67.4635 1055 0.3277 165.4423 1282 0.3477 165.4423 1295 0.3450 161.9808 1673 0.3550 161.9808 1839 0.4000 237.2692 3461 0.4100 237.2692 3461 & over 0.5100 583.4231 Where employee claimed HALF exemption from Medicare levy in Medicare levy variation declaration - Scale 6 WITH FS Debt Weekly earnings (x) less than $ a b 355 - - 692 0.1900 67.4635 711 0.2400 102.0798 865 0.3777 200.0587 1055 0.3377 165.4425 1282 0.3577 165.4425 1295 0.3550 161.9810 1673 0.3650 161.9810 1839 0.4100 237.2694 3461 0.4200 237.2694 3461 & over 0.5200 583.4233 Note: Withholding amounts including the SFSS component worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG and SFSS tax tables. The differences result from the rounding of components. Sample data With tax-free threshold Amounts to be withheld Weekly earnings $ Fortnightly earnings $ Monthly earnings $ 1055 21.00 2110 42.00 4571.67 91.00 1056 21.00 2112 42.00 4576.00 91.00 1135 23.00 2270 46.00 4918.33 100.00 1136 23.00 2272 46.00 4922.67 100.00 1214 24.00 2428 48.00 5260.67 104.00 1215 24.00 2430 48.00 5265.00 104.00 1294 26.00 2588 52.00 5607.33 113.00 1295 39.00 2590 78.00 5611.67 169.00 1296 39.00 2592 78.00 5616.00 169.00 1431 43.00 2862 86.00 6201.00 186.00 1432 43.00 2864 86.00 6205.33 186.00 1566 47.00 3132 94.00 6786.00 204.00 1567 47.00 3134 94.00 6790.33 204.00 1702 51.00 3404 102.00 7375.33 221.00 1703 51.00 3406 102.00 7379.67 221.00 1704 51.00 3408 102.00 7384.00 221.00 1838 55.00 3676 110.00 7964.67 238.00 1839 74.00 3678 148.00 7969.00 321.00 1840 74.00 3680 148.00 7973.33 321.00 1959 78.00 3918 156.00 8489.00 338.00 1960 78.00 3920 156.00 8493.33 338.00 Weekly withholding amounts including SFSS component Amounts to be withheld Weekly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 59 11.00 - 19.00 - - 60 12.00 - 19.00 - - 116 25.00 - 38.00 - - 117 25.00 - 38.00 - - 249 56.00 - 81.00 - - 250 56.00 - 81.00 - - 354 80.00 - 115.00 - - 355 80.00 - 115.00 - - 360 82.00 1.00 117.00 1.00 1.00 361 82.00 1.00 117.00 1.00 1.00 409 99.00 10.00 133.00 10.00 10.00 410 99.00 11.00 133.00 11.00 11.00 511 134.00 40.00 166.00 30.00 30.00 512 134.00 40.00 166.00 30.00 30.00 691 197.00 78.00 225.00 64.00 64.00 692 197.00 78.00 225.00 64.00 64.00 704 201.00 81.00 229.00 66.00 67.00 705 216.00 81.00 229.00 67.00 67.00 710 217.00 82.00 231.00 68.00 69.00 711 218.00 82.00 231.00 68.00 69.00 864 274.00 135.00 281.00 118.00 127.00 865 274.00 136.00 281.00 118.00 127.00 931 299.00 159.00 303.00 140.00 149.00 932 299.00 159.00 303.00 140.00 150.00 944 303.00 163.00 307.00 144.00 154.00 945 313.00 163.00 307.00 145.00 154.00 1054 354.00 201.00 343.00 180.00 191.00 1055 355.00 223.00 364.00 202.00 212.00 1281 439.00 306.00 442.00 280.00 293.00 1282 440.00 306.00 442.00 281.00 293.00 1294 444.00 311.00 446.00 285.00 298.00 1295 445.00 324.00 460.00 298.00 311.00 1322 455.00 334.00 469.00 308.00 321.00 1323 455.00 335.00 470.00 308.00 321.00 1488 524.00 396.00 528.00 367.00 382.00 1489 540.00 397.00 529.00 367.00 382.00 1672 618.00 465.00 594.00 432.00 449.00 1673 619.00 466.00 594.00 432.00 449.00 1838 690.00 535.00 660.00 498.00 517.00 1839 690.00 554.00 679.00 517.00 536.00 1844 692.00 556.00 681.00 519.00 538.00 1845 693.00 557.00 682.00 520.00 538.00 2119 811.00 674.00 794.00 632.00 653.00 2120 811.00 675.00 794.00 632.00 654.00 2490 970.00 834.00 946.00 784.00 809.00 2491 971.00 834.00 946.00 784.00 809.00 2652 1040.00 904.00 1012.00 850.00 877.00 2653 1040.00 904.00 1013.00 851.00 877.00 2736 1076.00 940.00 1047.00 885.00 912.00 2737 1076.00 940.00 1047.00 885.00 913.00 2898 1146.00 1009.00 1113.00 951.00 980.00 2899 1146.00 1010.00 1114.00 952.00 981.00 2913 1152.00 1016.00 1119.00 957.00 987.00 2914 1152.00 1016.00 1120.00 958.00 987.00 3110 1237.00 1100.00 1200.00 1038.00 1069.00 3111 1237.00 1101.00 1201.00 1039.00 1070.00 3460 1422.00 1251.00 1344.00 1182.00 1216.00 3461 1423.00 1251.00 1344.00 1182.00 1217.00 Fortnightly withholding amounts including SFSS component Amounts to be withheld Fortnightly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 118 22.00 - 38.00 - - 120 24.00 - 38.00 - - 232 50.00 - 76.00 - - 234 50.00 - 76.00 - - 498 112.00 - 162.00 - - 500 112.00 - 162.00 - - 708 160.00 - 230.00 - - 710 160.00 - 230.00 - - 720 164.00 2.00 234.00 2.00 2.00 722 164.00 2.00 234.00 2.00 2.00 818 198.00 20.00 266.00 20.00 20.00 820 198.00 22.00 266.00 22.00 22.00 1022 268.00 80.00 332.00 60.00 60.00 1024 268.00 80.00 332.00 60.00 60.00 1382 394.00 156.00 450.00 128.00 128.00 1384 394.00 156.00 450.00 128.00 128.00 1408 402.00 162.00 458.00 132.00 134.00 1410 432.00 162.00 458.00 134.00 134.00 1420 434.00 164.00 462.00 136.00 138.00 1422 436.00 164.00 462.00 136.00 138.00 1728 548.00 270.00 562.00 236.00 254.00 1730 548.00 272.00 562.00 236.00 254.00 1862 598.00 318.00 606.00 280.00 298.00 1864 598.00 318.00 606.00 280.00 300.00 1888 606.00 326.00 614.00 288.00 308.00 1890 626.00 326.00 614.00 290.00 308.00 2108 708.00 402.00 686.00 360.00 382.00 2110 710.00 446.00 728.00 404.00 424.00 2562 878.00 612.00 884.00 560.00 586.00 2564 880.00 612.00 884.00 562.00 586.00 2588 888.00 622.00 892.00 570.00 596.00 2590 890.00 648.00 920.00 596.00 622.00 2644 910.00 668.00 938.00 616.00 642.00 2646 910.00 670.00 940.00 616.00 642.00 2976 1048.00 792.00 1056.00 734.00 764.00 2978 1080.00 794.00 1058.00 734.00 764.00 3344 1236.00 930.00 1188.00 864.00 898.00 3346 1238.00 932.00 1188.00 864.00 898.00 3676 1380.00 1070.00 1320.00 996.00 1034.00 3678 1380.00 1108.00 1358.00 1034.00 1072.00 3688 1384.00 1112.00 1362.00 1038.00 1076.00 3690 1386.00 1114.00 1364.00 1040.00 1076.00 4238 1622.00 1348.00 1588.00 1264.00 1306.00 4240 1622.00 1350.00 1588.00 1264.00 1308.00 4980 1940.00 1668.00 1892.00 1568.00 1618.00 4982 1942.00 1668.00 1892.00 1568.00 1618.00 5304 2080.00 1808.00 2024.00 1700.00 1754.00 5306 2080.00 1808.00 2026.00 1702.00 1754.00 5472 2152.00 1880.00 2094.00 1770.00 1824.00 5474 2152.00 1880.00 2094.00 1770.00 1826.00 5796 2292.00 2018.00 2226.00 1902.00 1960.00 5798 2292.00 2020.00 2228.00 1904.00 1962.00 5826 2304.00 2032.00 2238.00 1914.00 1974.00 5828 2304.00 2032.00 2240.00 1916.00 1974.00 6220 2474.00 2200.00 2400.00 2076.00 2138.00 6222 2474.00 2202.00 2402.00 2078.00 2140.00 6920 2844.00 2502.00 2688.00 2364.00 2432.00 6922 2846.00 2502.00 2688.00 2364.00 2434.00 Monthly withholding amounts including SFSS component Amounts to be withheld Monthly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 255.67 48.00 - 82.00 - - 260.00 52.00 - 82.00 - - 502.67 108.00 - 165.00 - - 507.00 108.00 - 165.00 - - 1079.00 243.00 - 351.00 - - 1083.33 243.00 - 351.00 - - 1534.00 347.00 - 498.00 - - 1538.33 347.00 - 498.00 - - 1560.00 355.00 4.00 507.00 4.00 4.00 1564.33 355.00 4.00 507.00 4.00 4.00 1772.33 429.00 43.00 576.00 43.00 43.00 1776.67 429.00 48.00 576.00 48.00 48.00 2214.33 581.00 173.00 719.00 130.00 130.00 2218.67 581.00 173.00 719.00 130.00 130.00 2994.33 854.00 338.00 975.00 277.00 277.00 2998.67 854.00 338.00 975.00 277.00 277.00 3050.67 871.00 351.00 992.00 286.00 290.00 3055.00 936.00 351.00 992.00 290.00 290.00 3076.67 940.00 355.00 1001.00 295.00 299.00 3081.00 945.00 355.00 1001.00 295.00 299.00 3744.00 1187.00 585.00 1218.00 511.00 550.00 3748.33 1187.00 589.00 1218.00 511.00 550.00 4034.33 1296.00 689.00 1313.00 607.00 646.00 4038.67 1296.00 689.00 1313.00 607.00 650.00 4090.67 1313.00 706.00 1330.00 624.00 667.00 4095.00 1356.00 706.00 1330.00 628.00 667.00 4567.33 1534.00 871.00 1486.00 780.00 828.00 4571.67 1538.00 966.00 1577.00 875.00 919.00 5551.00 1902.00 1326.00 1915.00 1213.00 1270.00 5555.33 1907.00 1326.00 1915.00 1218.00 1270.00 5607.33 1924.00 1348.00 1933.00 1235.00 1291.00 5611.67 1928.00 1404.00 1993.00 1291.00 1348.00 5728.67 1972.00 1447.00 2032.00 1335.00 1391.00 5733.00 1972.00 1452.00 2037.00 1335.00 1391.00 6448.00 2271.00 1716.00 2288.00 1590.00 1655.00 6452.33 2340.00 1720.00 2292.00 1590.00 1655.00 7245.33 2678.00 2015.00 2574.00 1872.00 1946.00 7249.67 2682.00 2019.00 2574.00 1872.00 1946.00 7964.67 2990.00 2318.00 2860.00 2158.00 2240.00 7969.00 2990.00 2401.00 2942.00 2240.00 2323.00 7990.67 2999.00 2409.00 2951.00 2249.00 2331.00 7995.00 3003.00 2414.00 2955.00 2253.00 2331.00 9182.33 3514.00 2921.00 3441.00 2739.00 2830.00 9186.67 3514.00 2925.00 3441.00 2739.00 2834.00 10790.00 4203.00 3614.00 4099.00 3397.00 3506.00 10794.33 4208.00 3614.00 4099.00 3397.00 3506.00 11492.00 4507.00 3917.00 4385.00 3683.00 3800.00 11496.33 4507.00 3917.00 4390.00 3688.00 3800.00 11856.00 4663.00 4073.00 4537.00 3835.00 3952.00 11860.33 4663.00 4073.00 4537.00 3835.00 3956.00 12558.00 4966.00 4372.00 4823.00 4121.00 4247.00 12562.33 4966.00 4377.00 4827.00 4125.00 4251.00 12623.00 4992.00 4403.00 4849.00 4147.00 4277.00 12627.33 4992.00 4403.00 4853.00 4151.00 4277.00 13476.67 5360.00 4767.00 5200.00 4498.00 4632.00 13481.00 5360.00 4771.00 5204.00 4502.00 4637.00 14993.33 6162.00 5421.00 5824.00 5122.00 5269.00 14997.67 6166.00 5421.00 5824.00 5122.00 5274.00 Coefficients to work out the weekly amounts to withhold including HELP/SSL/TSL and SFSS components Your employee's total withholding, including the HELP/SSL/TSL and SFSS components, can be calculated using the formula and coefficients stated below. Using a formula The formulas comprise linear equations of the form y = ax - b, where: • y is the weekly withholding amount expressed in dollars • 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). • y is the weekly withholding amount expressed in dollars • 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). If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a HELP/SSL/TSL and Financial Supplement debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the HELP/SSL/TSL and SFSS components and one will not - for example, name one 'scale 2' and the other 'scale 22'. The HELP/SSL/TSL and SFSS components do not apply if the employee has not provided a tax file number (TFN). For scales without HELP/SSL/TSL and SFSS components, refer to Statement of formulas for calculating amounts to be withheld . Where tax-free threshold not claimed in Tax file number declaration - Scale 1 WITH HELP/SSL/TSL and FS Debt Weekly earnings (x) less than $ a b 60 0.1900 0.1900 361 0.2332 2.6045 705 0.3477 44.0006 825 0.4077 44.0006 932 0.4127 44.0006 945 0.4100 41.4841 1013 0.4250 41.4841 1115 0.4300 41.4841 1237 0.4350 41.4841 1321 0.4400 41.4841 1323 0.4450 41.4841 1489 0.4900 101.0225 1609 0.5050 101.0225 3111 0.5100 101.0225 3111 & over 0.6100 412.1764 Where employee has claimed the tax-free threshold in Tax file number declaration - Scale 2 WITH HELP/SSL/TSL and FS Debt Weekly earnings (x) less than $ a b 355 - - 410 0.1900 67.4635 512 0.2900 108.4923 711 0.2100 67.4646 1055 0.3477 165.4435 1175 0.4077 165.4435 1282 0.4127 165.4435 1295 0.4100 161.9819 1363 0.4250 161.9819 1465 0.4300 161.9819 1587 0.4350 161.9819 1671 0.4400 161.9819 1673 0.4450 161.9819 1839 0.4900 237.2704 1959 0.5050 237.2704 3461 0.5100 237.2704 3461 & over 0.6100 583.4242 Foreign residents - Scale 3 WITH HELP/SSL/TSL and FS Debt Weekly earnings (x) less than $ a b 1055 0.3250 0.3250 1175 0.3850 0.3250 1295 0.3900 0.3250 1363 0.4050 0.3250 1465 0.4100 0.3250 1587 0.4150 0.3250 1671 0.4200 0.3250 1673 0.4250 0.3250 1839 0.4700 75.2885 1959 0.4850 75.2885 3461 0.4900 75.2885 3461 & over 0.5900 421.4423 Where employee claimed FULL exemption from Medicare levy in Medicare levy variation declaration - Scale 5 WITH HELP/SSL/TSL and FS Debt Weekly earnings (x) less than $ a b 355 - - 711 0.1900 67.4635 1055 0.3277 165.4423 1175 0.3877 165.4423 1282 0.3927 165.4423 1295 0.3900 161.9808 1363 0.4050 161.9808 1465 0.4100 161.9808 1587 0.4150 161.9808 1671 0.4200 161.9808 1673 0.4250 161.9808 1839 0.4700 237.2692 1959 0.4850 237.2692 3461 0.4900 237.2692 3461 & over 0.5900 583.4231 Where employee claimed HALF exemption from Medicare levy in Medicare levy variation declaration - Scale 6 WITH HELP/SSL/TSL and FS Debt Weekly earnings (x) less than $ a b 355 - - 692 0.1900 67.4635 711 0.2400 102.0798 865 0.3777 200.0587 1055 0.3377 165.4425 1175 0.3977 165.4425 1282 0.4027 165.4425 1295 0.4000 161.9810 1363 0.4150 161.9810 1465 0.4200 161.9810 1587 0.4250 161.9810 1671 0.4300 161.9810 1673 0.4350 161.9810 1839 0.4800 237.2694 1959 0.4950 237.2694 3461 0.5000 237.2694 3461 & over 0.6000 583.4233 Withholding amounts including the HELP/SSL/TSL and SFSS components worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG, HELP/SSL/TSL and SFSS tax tables. The differences result from the rounding of components. Sample data Weekly withholding amounts including HELP/SSL/TSL and SFSS components Amounts to be withheld Weekly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 59 11.00 - 19.00 - - 60 12.00 - 19.00 - - 116 25.00 - 38.00 - - 117 25.00 - 38.00 - - 249 56.00 - 81.00 - - 250 56.00 - 81.00 - - 354 80.00 - 115.00 - - 355 80.00 - 115.00 - - 360 82.00 1.00 117.00 1.00 1.00 361 82.00 1.00 117.00 1.00 1.00 409 99.00 10.00 133.00 10.00 10.00 410 99.00 11.00 133.00 11.00 11.00 511 134.00 40.00 166.00 30.00 30.00 512 134.00 40.00 166.00 30.00 30.00 691 197.00 78.00 225.00 64.00 64.00 692 197.00 78.00 225.00 64.00 64.00 704 201.00 81.00 229.00 66.00 67.00 705 244.00 81.00 229.00 67.00 67.00 710 246.00 82.00 231.00 68.00 69.00 711 246.00 82.00 231.00 68.00 69.00 824 292.00 121.00 268.00 105.00 112.00 825 297.00 122.00 268.00 105.00 112.00 865 313.00 136.00 281.00 118.00 127.00 866 314.00 136.00 281.00 119.00 127.00 931 341.00 159.00 303.00 140.00 149.00 932 341.00 159.00 303.00 140.00 150.00 944 346.00 163.00 307.00 144.00 154.00 945 361.00 163.00 307.00 145.00 154.00 1012 389.00 187.00 329.00 167.00 177.00 1013 395.00 187.00 329.00 167.00 177.00 1054 412.00 201.00 343.00 180.00 191.00 1055 413.00 265.00 406.00 244.00 255.00 1114 438.00 289.00 429.00 267.00 278.00 1115 444.00 290.00 429.00 267.00 278.00 1174 470.00 314.00 452.00 290.00 302.00 1175 470.00 320.00 458.00 296.00 308.00 1236 497.00 345.00 482.00 320.00 333.00 1237 503.00 345.00 482.00 321.00 333.00 1281 523.00 364.00 500.00 338.00 351.00 1282 523.00 364.00 500.00 338.00 351.00 1294 528.00 369.00 505.00 343.00 356.00 1295 529.00 389.00 525.00 363.00 376.00 1321 547.00 400.00 535.00 373.00 387.00 1322 547.00 400.00 535.00 374.00 387.00 1323 548.00 401.00 536.00 374.00 387.00 1362 567.00 417.00 552.00 390.00 404.00 1363 567.00 425.00 559.00 397.00 411.00 1365 568.00 425.00 560.00 398.00 412.00 1464 617.00 468.00 600.00 439.00 453.00 1465 617.00 476.00 608.00 446.00 461.00 1489 651.00 486.00 618.00 456.00 471.00 1586 700.00 528.00 658.00 497.00 512.00 1587 701.00 537.00 667.00 505.00 521.00 1608 712.00 546.00 675.00 514.00 530.00 1609 720.00 546.00 676.00 514.00 530.00 1670 751.00 573.00 701.00 540.00 557.00 1671 752.00 582.00 710.00 549.00 565.00 1672 752.00 582.00 711.00 549.00 566.00 1673 753.00 583.00 711.00 550.00 566.00 1838 837.00 664.00 789.00 627.00 645.00 1839 837.00 692.00 817.00 655.00 674.00 1844 840.00 694.00 820.00 658.00 676.00 1845 840.00 695.00 820.00 658.00 676.00 1958 898.00 752.00 875.00 713.00 732.00 1959 899.00 762.00 885.00 723.00 743.00 2119 980.00 844.00 964.00 802.00 823.00 2120 981.00 844.00 964.00 802.00 823.00 2490 1169.00 1033.00 1145.00 983.00 1008.00 2491 1170.00 1034.00 1146.00 984.00 1009.00 2652 1252.00 1116.00 1225.00 1063.00 1089.00 2653 1253.00 1116.00 1225.00 1063.00 1090.00 2736 1295.00 1159.00 1266.00 1104.00 1131.00 2737 1295.00 1159.00 1266.00 1104.00 1132.00 2898 1377.00 1241.00 1345.00 1183.00 1212.00 2899 1378.00 1242.00 1346.00 1184.00 1213.00 2913 1385.00 1249.00 1353.00 1191.00 1220.00 2914 1386.00 1249.00 1353.00 1191.00 1220.00 3110 1486.00 1349.00 1449.00 1287.00 1318.00 3111 1486.00 1350.00 1450.00 1288.00 1319.00 3461 1700.00 1528.00 1621.00 1459.00 1494.00 Fortnightly withholding amounts including HELP/SSL/TSL and SFSS components Amounts to be withheld Fortnightly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 118 22.00 - 38.00 - - 120 24.00 - 38.00 - - 232 50.00 - 76.00 - - 234 50.00 - 76.00 - - 498 112.00 - 162.00 - - 500 112.00 - 162.00 - - 708 160.00 - 230.00 - - 710 160.00 - 230.00 - - 720 164.00 2.00 234.00 2.00 2.00 722 164.00 2.00 234.00 2.00 2.00 818 198.00 20.00 266.00 20.00 20.00 820 198.00 22.00 266.00 22.00 22.00 1022 268.00 80.00 332.00 60.00 60.00 1024 268.00 80.00 332.00 60.00 60.00 1382 394.00 156.00 450.00 128.00 128.00 1384 394.00 156.00 450.00 128.00 128.00 1408 402.00 162.00 458.00 132.00 134.00 1410 488.00 162.00 458.00 134.00 134.00 1420 492.00 164.00 462.00 136.00 138.00 1422 492.00 164.00 462.00 136.00 138.00 1648 584.00 242.00 536.00 210.00 224.00 1650 594.00 244.00 536.00 210.00 224.00 1730 626.00 272.00 562.00 236.00 254.00 1732 628.00 272.00 562.00 238.00 254.00 1862 682.00 318.00 606.00 280.00 298.00 1864 682.00 318.00 606.00 280.00 300.00 1888 692.00 326.00 614.00 288.00 308.00 1890 722.00 326.00 614.00 290.00 308.00 2024 778.00 374.00 658.00 334.00 354.00 2026 790.00 374.00 658.00 334.00 354.00 2108 824.00 402.00 686.00 360.00 382.00 2110 826.00 530.00 812.00 488.00 510.00 2228 876.00 578.00 858.00 534.00 556.00 2230 888.00 580.00 858.00 534.00 556.00 2348 940.00 628.00 904.00 580.00 604.00 2350 940.00 640.00 916.00 592.00 616.00 2472 994.00 690.00 964.00 640.00 666.00 2474 1006.00 690.00 964.00 642.00 666.00 2562 1046.00 728.00 1000.00 676.00 702.00 2564 1046.00 728.00 1000.00 676.00 702.00 2588 1056.00 738.00 1010.00 686.00 712.00 2590 1058.00 778.00 1050.00 726.00 752.00 2642 1094.00 800.00 1070.00 746.00 774.00 2644 1094.00 800.00 1070.00 748.00 774.00 2646 1096.00 802.00 1072.00 748.00 774.00 2724 1134.00 834.00 1104.00 780.00 808.00 2726 1134.00 850.00 1118.00 794.00 822.00 2730 1136.00 850.00 1120.00 796.00 824.00 2928 1234.00 936.00 1200.00 878.00 906.00 2930 1234.00 952.00 1216.00 892.00 922.00 2978 1302.00 972.00 1236.00 912.00 942.00 3172 1400.00 1056.00 1316.00 994.00 1024.00 3174 1402.00 1074.00 1334.00 1010.00 1042.00 3216 1424.00 1092.00 1350.00 1028.00 1060.00 3218 1440.00 1092.00 1352.00 1028.00 1060.00 3340 1502.00 1146.00 1402.00 1080.00 1114.00 3342 1504.00 1164.00 1420.00 1098.00 1130.00 3344 1504.00 1164.00 1422.00 1098.00 1132.00 3346 1506.00 1166.00 1422.00 1100.00 1132.00 3676 1674.00 1328.00 1578.00 1254.00 1290.00 3678 1674.00 1384.00 1634.00 1310.00 1348.00 3688 1680.00 1388.00 1640.00 1316.00 1352.00 3690 1680.00 1390.00 1640.00 1316.00 1352.00 3916 1796.00 1504.00 1750.00 1426.00 1464.00 3918 1798.00 1524.00 1770.00 1446.00 1486.00 4238 1960.00 1688.00 1928.00 1604.00 1646.00 4240 1962.00 1688.00 1928.00 1604.00 1646.00 4980 2338.00 2066.00 2290.00 1966.00 2016.00 4982 2340.00 2068.00 2292.00 1968.00 2018.00 5304 2504.00 2232.00 2450.00 2126.00 2178.00 5306 2506.00 2232.00 2450.00 2126.00 2180.00 5472 2590.00 2318.00 2532.00 2208.00 2262.00 5474 2590.00 2318.00 2532.00 2208.00 2264.00 5796 2754.00 2482.00 2690.00 2366.00 2424.00 5798 2756.00 2484.00 2692.00 2368.00 2426.00 5826 2770.00 2498.00 2706.00 2382.00 2440.00 5828 2772.00 2498.00 2706.00 2382.00 2440.00 6220 2972.00 2698.00 2898.00 2574.00 2636.00 6222 2972.00 2700.00 2900.00 2576.00 2638.00 6922 3400.00 3056.00 3242.00 2918.00 2988.00 Monthly withholding amounts including HELP/SSL/TSL and SFSS components Amounts to be withheld Monthly earnings $ Scale 1 No tax-free threshold $ Scale 2 With tax-free threshold $ Scale 3 Foreign resident $ Scale 5 Full Medicare exemption $ Scale 6 Half Medicare exemption $ 255.67 48.00 - 82.00 - - 260.00 52.00 - 82.00 - - 502.67 108.00 - 165.00 - - 507.00 108.00 - 165.00 - - 1079.00 243.00 - 351.00 - - 1083.33 243.00 - 351.00 - - 1534.00 347.00 - 498.00 - - 1538.33 347.00 - 498.00 - - 1560.00 355.00 4.00 507.00 4.00 4.00 1564.33 355.00 4.00 507.00 4.00 4.00 1772.33 429.00 43.00 576.00 43.00 43.00 1776.67 429.00 48.00 576.00 48.00 48.00 2214.33 581.00 173.00 719.00 130.00 130.00 2218.67 581.00 173.00 719.00 130.00 130.00 2994.33 854.00 338.00 975.00 277.00 277.00 2998.67 854.00 338.00 975.00 277.00 277.00 3050.67 871.00 351.00 992.00 286.00 290.00 3055.00 1057.00 351.00 992.00 290.00 290.00 3076.67 1066.00 355.00 1001.00 295.00 299.00 3081.00 1066.00 355.00 1001.00 295.00 299.00 3570.67 1265.00 524.00 1161.00 455.00 485.00 3575.00 1287.00 529.00 1161.00 455.00 485.00 3748.33 1356.00 589.00 1218.00 511.00 550.00 3752.67 1361.00 589.00 1218.00 516.00 550.00 4034.33 1478.00 689.00 1313.00 607.00 646.00 4038.67 1478.00 689.00 1313.00 607.00 650.00 4090.67 1499.00 706.00 1330.00 624.00 667.00 4095.00 1564.00 706.00 1330.00 628.00 667.00 4385.33 1686.00 810.00 1426.00 724.00 767.00 4389.67 1712.00 810.00 1426.00 724.00 767.00 4567.33 1785.00 871.00 1486.00 780.00 828.00 4571.67 1790.00 1148.00 1759.00 1057.00 1105.00 4827.33 1898.00 1252.00 1859.00 1157.00 1205.00 4831.67 1924.00 1257.00 1859.00 1157.00 1205.00 5087.33 2037.00 1361.00 1959.00 1257.00 1309.00 5091.67 2037.00 1387.00 1985.00 1283.00 1335.00 5356.00 2154.00 1495.00 2089.00 1387.00 1443.00 5360.33 2180.00 1495.00 2089.00 1391.00 1443.00 5551.00 2266.00 1577.00 2167.00 1465.00 1521.00 5555.33 2266.00 1577.00 2167.00 1465.00 1521.00 5607.33 2288.00 1599.00 2188.00 1486.00 1543.00 5611.67 2292.00 1686.00 2275.00 1573.00 1629.00 5724.33 2370.00 1733.00 2318.00 1616.00 1677.00 5728.67 2370.00 1733.00 2318.00 1621.00 1677.00 5733.00 2375.00 1738.00 2323.00 1621.00 1677.00 5902.00 2457.00 1807.00 2392.00 1690.00 1751.00 5906.33 2457.00 1842.00 2422.00 1720.00 1781.00 5915.00 2461.00 1842.00 2427.00 1725.00 1785.00 6344.00 2674.00 2028.00 2600.00 1902.00 1963.00 6348.33 2674.00 2063.00 2635.00 1933.00 1998.00 6452.33 2821.00 2106.00 2678.00 1976.00 2041.00 6872.67 3033.00 2288.00 2851.00 2154.00 2219.00 6877.00 3038.00 2327.00 2890.00 2188.00 2258.00 6968.00 3085.00 2366.00 2925.00 2227.00 2297.00 6972.33 3120.00 2366.00 2929.00 2227.00 2297.00 7236.67 3254.00 2483.00 3038.00 2340.00 2414.00 7241.00 3259.00 2522.00 3077.00 2379.00 2448.00 7245.33 3259.00 2522.00 3081.00 2379.00 2453.00 7249.67 3263.00 2526.00 3081.00 2383.00 2453.00 7964.67 3627.00 2877.00 3419.00 2717.00 2795.00 7969.00 3627.00 2999.00 3540.00 2838.00 2921.00 7990.67 3640.00 3007.00 3553.00 2851.00 2929.00 7995.00 3640.00 3012.00 3553.00 2851.00 2929.00 8484.67 3891.00 3259.00 3792.00 3090.00 3172.00 8489.00 3896.00 3302.00 3835.00 3133.00 3220.00 9182.33 4247.00 3657.00 4177.00 3475.00 3566.00 9186.67 4251.00 3657.00 4177.00 3475.00 3566.00 10790.00 5066.00 4476.00 4962.00 4260.00 4368.00 10794.33 5070.00 4481.00 4966.00 4264.00 4372.00 11492.00 5425.00 4836.00 5308.00 4606.00 4719.00 11496.33 5430.00 4836.00 5308.00 4606.00 4723.00 11856.00 5612.00 5022.00 5486.00 4784.00 4901.00 11860.33 5612.00 5022.00 5486.00 4784.00 4905.00 12558.00 5967.00 5378.00 5828.00 5126.00 5252.00 12562.33 5971.00 5382.00 5833.00 5131.00 5256.00 12623.00 6002.00 5412.00 5863.00 5161.00 5287.00 12627.33 6006.00 5412.00 5863.00 5161.00 5287.00 13476.67 6439.00 5846.00 6279.00 5577.00 5711.00 13481.00 6439.00 5850.00 6283.00 5581.00 5716.00 14997.67 7367.00 6621.00 7024.00 6322.00 6474.00 Use for payments to low income aged persons and pensioners For payments made on or after 1 October 2016 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. Use the Withholding look-up tool to quickly work out the amount to withhold . Using this table You should use this table if you make payments to: • seniors and pensioners who, at the end of the relevant financial year, are 65 years of age or older (for example, to be eligible for the year ending 30 June 2017, an employee must be born on or before 30 June 1952). • veterans receiving a service pension and/or war widows/widowers receiving an income support supplement from the Department of Veterans' Affairs who are at least 60 years of age. • seniors and pensioners who, at the end of the relevant financial year, are 65 years of age or older (for example, to be eligible for the year ending 30 June 2017, an employee must be born on or before 30 June 1952). • veterans receiving a service pension and/or war widows/widowers receiving an income support supplement from the Department of Veterans' Affairs who are at least 60 years of age. This table applies to weekly payments including: • salary, wages, allowances and leave loading paid to employees • director's fees • payments to labour-hire workers • 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) • a non-super income stream • a super income stream. • salary, wages, allowances and leave loading paid to employees • director's fees • payments to labour-hire workers • 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) • a non-super income stream • a super income stream. This tax table can only apply if the employee has provided you with either: • a Withholding declaration (NAT 3093) answering yes to questions 4, 5 and 8 • a Withholding declaration - short version for seniors and pensioners (NAT 5072) answering yes to questions 4, 5 and 6. • a Withholding declaration (NAT 3093) answering yes to questions 4, 5 and 8 • a Withholding declaration - short version for seniors and pensioners (NAT 5072) answering yes to questions 4, 5 and 6. Get it done You can download a printable version of Tax table for seniors and pensioners (NAT 4466, 791KB) in Portable Document Format (PDF). Working out the withholding amount 1. Calculate your employee's total weekly earnings, add any allowances and irregular payments that will be included in this week's pay to the normal weekly earnings, ignoring any cents. 2. Input the amount from step 1 into the Withholding look-up tool , as per instructions in the tool. 3. Use the appropriate column to find the correct amount to withhold. If your employee is: • single, use column 2 • a member of an illness-separated couple, use column 3 • a member of a couple, use column 4. 4. If your employee is entitled to a tax offset or a Medicare levy adjustment, subtract its weekly value from the withholding amount found in step 3. Example An employee has weekly earnings of $619.75. To work out the correct amount to withhold, ignore cents and input $619 into the Withholding look-up tool. If the employee is: • single, use column 2 to find the correct amount to withhold ($7.00) • a member of an illness-separated couple, use column 3 to find the correct amount to withhold ($13.00) • a member of a couple, use column 4 to find the correct amount to withhold ($27.00). 1. Calculate your employee's total weekly earnings, add any allowances and irregular payments that will be included in this week's pay to the normal weekly earnings, ignoring any cents. 2. Input the amount from step 1 into the Withholding look-up tool , as per instructions in the tool. 3. Use the appropriate column to find the correct amount to withhold. If your employee is: • single, use column 2 • a member of an illness-separated couple, use column 3 • a member of a couple, use column 4. 4. If your employee is entitled to a tax offset or a Medicare levy adjustment, subtract its weekly value from the withholding amount found in step 3. • single, use column 2 • a member of an illness-separated couple, use column 3 • a member of a couple, use column 4. Example An employee has weekly earnings of $619.75. To work out the correct amount to withhold, ignore cents and input $619 into the Withholding look-up tool. If the employee is: • single, use column 2 to find the correct amount to withhold ($7.00) • a member of an illness-separated couple, use column 3 to find the correct amount to withhold ($13.00) • a member of a couple, use column 4 to find the correct amount to withhold ($27.00). • single, use column 2 to find the correct amount to withhold ($7.00) • a member of an illness-separated couple, use column 3 to find the correct amount to withhold ($13.00) • a member of a couple, use column 4 to find the correct amount to withhold ($27.00). Calculating fortnightly or monthly withholding amounts First calculate the weekly equivalent of fortnightly or monthly 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. • 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. Then calculate fortnightly or monthly 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. • 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. Using a formula The withholding amounts shown in this table can be expressed in a mathematical form. You should read this section with Statement of formulas for calculating amounts to be withheld (NAT 1004). If you have developed your own payroll software package, you can use the following formulas and the coefficients outlined below. The formulas comprise linear equations of the form y = ax - b, where: • y is the withholding amount expressed in dollars • x is the weekly earnings rounded down to whole dollars plus 99 cents • a and b are the values of the coefficients for the formulas shown in the relevant Values of the coefficients a and b for each set of formulas tables. • y is the withholding amount expressed in dollars • x is the weekly earnings rounded down to whole dollars plus 99 cents • a and b are the values of the coefficients for the formulas shown in the relevant Values of the coefficients a and b for each set of formulas tables. Rounding of withholding amounts Withholding amounts calculated as a result of applying the formulas are rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. If no TFN is provided, ignore cents when you calculate withholding amounts. Accounting software Software written in accordance with the formulas should be tested for accuracy against the withholding amounts obtained using the Withholding look-up tool . You should only use such software if it produces the exact amounts. Values of the coefficients a and b for each set of formulas Single Weekly earnings(x) less than a b $580 0.0000 0.0000 $620 0.1900 110.3481 $648 0.3150 187.9418 $711 0.4150 252.8226 $811 0.5527 350.8014 $963 0.4727 285.9214 $1,282 0.3477 165.4431 $1,673 0.3450 161.9819 $3,461 0.3900 237.2704 $3,461 & over 0.4900 583.4242 Illness-separated Weekly earnings(x) less than a b $561 0.0000 0.0000 $601 0.1900 106.6942 $648 0.3150 181.8841 $711 0.4150 246.7649 $811 0.5527 344.7438 $915 0.4727 279.8638 $1,282 0.3477 165.4431 $1,673 0.3450 161.9819 $3,461 0.3900 237.2704 $3,461 & over 0.4900 583.4242 Member of a couple Weekly earnings(x) less than a b $517 0.0000 0.0000 $557 0.1900 98.2712 $648 0.3150 167.9202 $711 0.4150 232.8010 $803 0.5527 330.7798 $811 0.4277 230.3231 $1,282 0.3477 165.4431 $1,673 0.3450 161.9819 $3,461 0.3900 237.2704 $3,461 & over 0.4900 583.4242 Medicare levy parameters Weekly earnings threshold 648 Weekly earnings shade-in threshold 811 Medicare levy family threshold 46,966 Weekly family threshold divisor 52 Additional child 3,306 Shading out point multiplier 0.1000 Shading out point divisor 0.0800 Weekly levy adjustment factor 648.8100 Medicare levy 0.0200 Tax file number (TFN) declarations The answers your employees provide on their Tax file number declaration (NAT 3092) 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. When a TFN has not been provided You must withhold 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents), if all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. 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 (NAT 1432) 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 49% from any payment you make to a resident employee and 47% from a foreign resident employee (ignoring any cents) unless we tell you not to. Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. 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. Work it out To calculate additional withholding amounts for: • HELP, SSL or TSL debts - refer to HELP/SSL/TSL weekly tax table • Financial Supplement debts - refer to SFSS weekly tax table . • HELP, SSL or TSL debts - refer to HELP/SSL/TSL weekly tax table • Financial Supplement debts - refer to SFSS weekly tax table . 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, refer to Withholding from allowances . Leave loading If you pay leave loading as a lump sum, you need to use Tax table for back payments, commissions, bonuses and similar payments (NAT 3348) to calculate withholding. If you pay leave loading on a pro-rata basis, add the leave loading payment to the earnings for that period to calculate withholding. Claiming tax offsets If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must give you a Withholding declaration. To work out your employee's annual tax offset entitlement into a weekly value, use the Ready reckoner for tax offsets. Deduct this amount from the amount shown in column 2, 3 or 4 of the Withholding look-up tool ,. Ready reckoner for tax offsets Amount Claimed $ Weekly value $ 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 20 - 30 1.00 40 1.00 50 1.00 57 1.00 60 1.00 70 1.00 80 2.00 90 2.00 100 2.00 200 4.00 300 6.00 338 6.00 400 8.00 500 10.00 600 11.00 700 13.00 800 15.00 850 16.00 900 17.00 1000 19.00 1100 21.00 1173 22.00 1200 23.00 1300 25.00 1400 27.00 1500 29.00 1600 30.00 1700 32.00 1750 33.00 1800 34.00 1900 36.00 2000 38.00 2500 48.00 2535 48.00 3000 57.00 If the exact tax offset amount claimed is not shown in the ready reckoner, you add the values for an appropriate combination. Example Tax offsets of $422 claimed. Add values of $400, $20 and $2 = $8 + $0 + $0 = $8. Therefore, reduce the amount to be withheld by $8. Example Tax offsets of $422 claimed. Add values of $400, $20 and $2 = $8 + $0 + $0 = $8. Therefore, reduce the amount to be withheld by $8. Withholding declarations An employee can use the Withholding declaration (NAT 3093) to advise you of a tax offset they choose to claim through reduced withholding. For more information on tax offsets, refer to Claiming tax offsets. Employees can also use a Withholding declaration to advise you of changes to their situation that may vary the amount you need to withhold. Changes that may affect the amount you need to withhold include: • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • advising of a HELP, SSL, TSL or Financial Supplement debt (or changes to them) • entitlement to a seniors and pensioners tax offset. • becoming or ceasing to be an Australian resident for tax purposes • claiming or discontinuing a claim for the tax-free threshold • 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. Medicare levy adjustments To claim the Medicare levy adjustment (available to some low income earners with dependants), an employee must lodge a Medicare levy variation declaration (NAT 0929) with their Tax file number declaration. For instructions on how to work out the Medicare levy adjustment, refer to Medicare levy adjustment weekly tax table (NAT 1010). For payments made on or after 1 October 2016 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 paragraph 12-80(a) of Schedule 1 to the TAA. Using this table You should use this table if you make a payment of a super income stream, including a: • transition to retirement income stream • temporary or permanent disability income stream • super death benefit income stream to a dependant. • transition to retirement income stream • temporary or permanent disability income stream • super death benefit income stream to a dependant. Super income streams A super income stream is a series of regular payments from a super fund when the member has satisfied a condition of release. These regular payments can be paid weekly, fortnightly, monthly, quarterly or annually. The following payments are not super income stream payments: • commutation of an income stream; this is a super lump sum • an amount paid which the member elected to be treated as a super lump sum prior to the payment being made from the income stream. • commutation of an income stream; this is a super lump sum • an amount paid which the member elected to be treated as a super lump sum prior to the payment being made from the income stream. See also: • Conditions of release • Taxation Ruling TR 2013/5: When a super income stream commences and ceases for further information on starting and stopping an income stream • Tax table for superannuation lump sums to work out the amount to withhold from super lump sums. • Conditions of release • Taxation Ruling TR 2013/5: When a super income stream commences and ceases for further information on starting and stopping an income stream • Tax table for superannuation lump sums to work out the amount to withhold from super lump sums. Components of a super income stream Before you can work out the withholding amount, you must calculate the components of the super income stream. A super income stream may have two components: • the tax-free component • taxable component which can include either or both of an - element taxed in the fund (taxed element) - element untaxed in the fund (untaxed element). • the tax-free component • taxable component which can include either or both of an - element taxed in the fund (taxed element) - element untaxed in the fund (untaxed element). - element taxed in the fund (taxed element) - element untaxed in the fund (untaxed element). You do not withhold from the tax-free component. Tax file number (TFN) declarations The answers your payees 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 a payee, it will override the previous one. If a payee does not give you a valid Tax file number declaration within 14 days of starting a payer/payee relationship, you must complete a Tax file number declaration with all available details of the payee and send it to us. When a TFN has not been provided You must withhold 49% for residents and 47% for foreign residents from the taxable component (ignoring any cents), if a super income stream payment is made to your payee and all of the following apply: • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. • they have not quoted their TFN • they have not claimed an exemption from quoting their TFN • they have not advised you that they have applied for a TFN or have made an enquiry with us. However, if your payee is 60 years old or above, you can only withhold from the untaxed element of the taxable component. If a payee 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 payee has not given you their TFN within 28 days, you must withhold 49% from any payment you make to a resident payee and 47% from a foreign resident payee from the relevant element(s) of the taxable component of the super income stream payment (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: • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. • Higher Education Loan Program (HELP) debts • Student Start-up Loan (SSL) debts • Trade Support Loan (TSL) debts • Financial Supplement debts. Working out the withholding amount Factors to consider when working out the withholding amount include: • whether the payee is an Australian resident or foreign resident for tax purposes • the age of the payee • the frequency of the income stream payments - for example, fortnightly, monthly • whether the payee is claiming the tax-free threshold • whether the payee is claiming the seniors and pensioners tax offset • whether the income stream includes an untaxed element (generally payments from state and Commonwealth public sector super schemes) • whether the income stream is a death benefit income stream • whether the payee is an Australian resident or foreign resident for tax purposes • the age of the payee • the frequency of the income stream payments - for example, fortnightly, monthly • whether the payee is claiming the tax-free threshold • whether the payee is claiming the seniors and pensioners tax offset • whether the income stream includes an untaxed element (generally payments from state and Commonwealth public sector super schemes) • whether the income stream is a death benefit income stream Payments to Australian residents This table is divided into three parts. The amount required to be withheld from the taxable component of a super income stream can be calculated using the following: • the taxable component is comprised wholly of a taxed element - use part A • the taxable component contains an untaxed element - use part B • the payment is a super death benefit income stream - use part C. • the taxable component is comprised wholly of a taxed element - use part A • the taxable component contains an untaxed element - use part B • the payment is a super death benefit income stream - use part C. Payments to foreign residents If the income stream is to be made to a foreign resident, you will need to check if there is a tax treaty with their country of residence. If the super income stream is assessable in the other country because of the treaty, no withholding is required. If a foreign resident's income stream is assessable in Australia, you are required to withhold from the payment. See also: • The full list of Australian Tax Treaties , as maintained by Treasury • What are tax treaties? • The full list of Australian Tax Treaties , as maintained by Treasury • What are tax treaties? Rounding of withholding amounts Withholding amounts calculated using formulas should be rounded to the nearest dollar. Results ending in exactly 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. Where no TFN has been provided, cents are ignored when withholding amounts are calculated. Withholding amounts calculated using formulas should be rounded to the nearest dollar. Results ending in exactly 50 cents are rounded to the next highest dollar. Do this rounding directly; do not make a preliminary rounding to the nearest cent. Where no TFN has been provided, cents are ignored when withholding amounts are calculated. Part A: Taxable component is comprised wholly of a taxed element Step 1 Use the following table to work out whether the taxed element of the taxable component is subject to withholding. If the taxable component contains an untaxed element, go to part B. Age Withholding applies to: Below 60 years Taxed element 60 years and over No withholding If your payee is 60 years of age or over, no withholding is required from the taxed element. If your payee is less than 60 years of age, go to step 2. Step 2 Use the appropriate PAYG withholding tax table to calculate the withholding amount relevant to the amount worked out at step 1. The tax table you use depends on the period the income stream covers - that is, weekly, fortnightly or monthly payments. Step 3 Some payees may be eligible for a tax offset. Use the following table to calculate the tax offset amount. Super income stream - taxed element Age Tax offset Below preservation age Nil Preservation age to below 60 years Taxed element × 15% Disability super income stream - taxed element Age Tax offset Below preservation age Taxed element × 15% Preservation age to below 60 years Taxed element × 15% See also: Preservation age Step 4 For some payees, the application of the offset from step 3 leads to under withholding for their Medicare levy. An offset adjustment is required. Use the applicable formulas below to calculate the offset adjustment amount (you will need to calculate the weekly equivalent of the taxable component if making fortnightly, monthly or quarterly payments). Adjustment amounts per taxable component amount Taxable component amount (on a weekly basis) Offset adjustment amount Less than the Medicare levy threshold for singles Nil Greater than the Medicare levy threshold for singles, but less than the Medicare levy shade out point (SOP) for singles (Taxable component - Medicare levy threshold for singles) x 0.10 Greater than or equal to the Medicare levy SOP for singles, but less than $934 Taxable component x 0.02 Greater than $933 Nil Medicare levy parameters are contained in Statement of formulas for calculating amounts to be withheld . Step 5 Calculate the notional amount to withhold by first subtracting the tax offset per payment (step 3) from the withholding amount (step 2). Notional amount to withhold = withholding amount - tax offset Notional amount to withhold = withholding amount - tax offset Then compare the notional amount to withhold with the offset adjustment amount calculated at step 4. If the notional amount to withhold is: • less than the amount calculated at step 4, withhold the amount calculated at step 4 • more than the amount calculated at step 4, withhold the notional amount to be withheld. • less than the amount calculated at step 4, withhold the amount calculated at step 4 • more than the amount calculated at step 4, withhold the notional amount to be withheld. Examples These examples use the PAYG withholding tax tables that apply from 1 October 2016. Case A: Taxable component comprised wholly of a taxed element Example 1 Courtney is 61 and is receiving a fortnightly super income stream of $1,000. The tax-free component of Courtney's fortnightly super income stream is $200. The taxable component of the super income stream is $800. As Courtney is over 60 years old and her taxable component is comprised wholly of a taxed element, no withholding is required. Example 2 Maree is 56 and is receiving a fortnightly super income stream of $1,200. Maree's preservation age is 55. The tax-free component of Maree's fortnightly super income stream is $300. The taxable component of Maree's super income stream is $900. Step 1: As Maree is 56, withholding applies to the taxable component. Step 2: As Maree is paid fortnightly, use the Fortnightly tax table to work out the withholding required from the $900 taxed element. This amount is $44, assuming that Maree is claiming the tax-free threshold. Step 3: Maree is entitled to a tax offset. Tax offset = taxed element x 15% = $900 x 15% = $135 Step 4: Calculate Maree's fortnightly offset adjustment amount. As Maree's fortnightly payment is more than $820 (the Medicare levy threshold for singles, on a fortnightly basis) but less than $1024 (the Medicare levy SOP for singles, on a fortnightly basis), her offset adjustment amount is calculated as: Offset adjustment amount = (Taxable component - Medicare levy threshold for singles) x 0.10 = ($900 - $820) x 0.10 = $8.00 = $8 per fortnight (rounded to the nearest dollar) Maree's offset adjustment amount is $8 per fortnight. Step 5: To calculate the notional withholding amount, reduce the withholding amount ($44 as worked out in step 2) by the value of the tax offset ($135 as worked out in step 3). That is: Notional withholding amount = $44 - $135 = -$91 Since the notional withholding amount is negative and less than the offset adjustment amount, the amount to be withheld from Maree's fortnightly super income stream is $8. This is the offset adjustment amount which will cover the Medicare levy payable. Example 1 Courtney is 61 and is receiving a fortnightly super income stream of $1,000. The tax-free component of Courtney's fortnightly super income stream is $200. The taxable component of the super income stream is $800. As Courtney is over 60 years old and her taxable component is comprised wholly of a taxed element, no withholding is required. Example 2 Maree is 56 and is receiving a fortnightly super income stream of $1,200. Maree's preservation age is 55. The tax-free component of Maree's fortnightly super income stream is $300. The taxable component of Maree's super income stream is $900. Step 1: As Maree is 56, withholding applies to the taxable component. Step 2: As Maree is paid fortnightly, use the Fortnightly tax table to work out the withholding required from the $900 taxed element. This amount is $44, assuming that Maree is claiming the tax-free threshold. Step 3: Maree is entitled to a tax offset. Tax offset = taxed element x 15% = $900 x 15% = $135 Step 4: Calculate Maree's fortnightly offset adjustment amount. As Maree's fortnightly payment is more than $820 (the Medicare levy threshold for singles, on a fortnightly basis) but less than $1024 (the Medicare levy SOP for singles, on a fortnightly basis), her offset adjustment amount is calculated as: Offset adjustment amount = (Taxable component - Medicare levy threshold for singles) x 0.10 = ($900 - $820) x 0.10 = $8.00 = $8 per fortnight (rounded to the nearest dollar) Maree's offset adjustment amount is $8 per fortnight. Step 5: To calculate the notional withholding amount, reduce the withholding amount ($44 as worked out in step 2) by the value of the tax offset ($135 as worked out in step 3). That is: Notional withholding amount = $44 - $135 = -$91 Since the notional withholding amount is negative and less than the offset adjustment amount, the amount to be withheld from Maree's fortnightly super income stream is $8. This is the offset adjustment amount which will cover the Medicare levy payable. Part B: Taxable component contains an untaxed element Step 1 Use the following table to work out which elements of the taxable component are subject to withholding. How to apply withholding when taxable component contains untaxed element Age Taxable component of super income stream contains Withholding applies to the following amount(s) Untaxed element Taxed element Below preservation age Yes Yes Sum of untaxed and taxed elements No Yes Taxed element Yes No Untaxed element Preservation age to below 60 years Yes Yes Sum of untaxed and taxed elements No Yes Taxed element Yes No Untaxed element 60 years and over Yes Yes Untaxed element No Yes No withholding Yes No Untaxed element Step 2 Use the appropriate PAYG withholding tax table to calculate the withholding amount relevant to the amount worked out in step 1. The tax table you use depends on the period the income stream covers - that is, weekly, fortnightly or monthly. Note: Some payees may be eligible to claim the seniors and pensioners tax offset (SAPTO). If the payee gives you a Withholding declaration indicating they want to claim a SAPTO entitlement through PAYG withholding, you should use the Tax table for seniors and pensioners to work out the amount to withhold from the amount calculated in step 1. Step 3 Some payees may be eligible for a tax offset. Use the following table to work out the tax offset amount for the payee. Super income stream - taxable component Age Tax offset Below preservation age Nil Preservation age to below 60 years Taxed element × 15% Untaxed element - Nil 60 years and over Untaxed element x 10% Disability super income stream - taxable component Age Tax offset Below preservation age Taxed element × 15% Untaxed element - Nil Preservation age to below 60 years Taxed element × 15% Untaxed element - Nil 60 years and over Untaxed element x 10% Untaxed element - Nil Untaxed element - Nil Untaxed element - Nil Step 4 Work out the amount to withhold by subtracting the tax offset per payment (step 3) from the withholding amount (step 2). Amount to withhold = withholding amount - tax offset Amount to withhold = withholding amount - tax offset If the tax offset amount is greater than the withholding amount, the amount to withhold is nil. Example This example uses the PAYG withholding tax tables that apply from 1 October 2016. Case B: Taxable component comprises a taxed element and an untaxed element Ralph is 63 and receives a fortnightly super income stream of $3,000. The tax-free component of Ralph's fortnightly super income stream is $900. The taxable component of his super income stream is $2,100. Step 1: Ralph's $2,100 taxable component is comprised of a $600 taxed element and a $1,500 untaxed element. As Ralph is over 60 years old, no withholding will apply to the taxed element. Withholding will apply to the $1,500 untaxed element. Step 2: Using the Fortnightly tax table , work out the withholding required from the $1,500 untaxed element. This is $192, assuming that Ralph is claiming the tax-free threshold. Step 3: Ralph is entitled to a tax offset. Tax offset = untaxed element x 10% = $1,500 x 10% = $150 Step 4: Reduce the withholding amount ($192 as worked out in step 2) by the value of the tax offset ($150). Final withholding amount = withholding amount less tax offset = $192 - $150 = $42 Part C: Payment is a super death benefit income stream Step 1 Use the following table to work out which elements of the taxable component are subject to withholding. Super death benefit paid to a dependant 1 Age of deceased Age of recipient Taxable component of super death benefit income stream contains Withholding applies to the following amount(s) Untaxed element Taxed element Below 60 years Below 60 years Yes Yes Sum of untaxed and taxed elements Yes No Untaxed element No Yes Taxed element 60 years and over Yes Yes Untaxed element Yes No Untaxed element No Yes No withholding 60 years and over Yes Yes Untaxed element Yes No Untaxed element No Yes No withholding 1 Dependants include all children of the deceased under the age of 18, any spouse of the deceased (including a former spouse and a current or former de facto spouse) and any person with whom the deceased had an interdependency relationship. An interdependency relationship includes a close personal relationship between two people who live together, where one or both provides for the financial and domestic support and personal care of the other. A dependant can also be a person who was financially dependent on the deceased. Before accepting that a person is financially dependent, phone us on 13 10 20. Step 2 Use the appropriate PAYG withholding tax table to calculate the withholding amount relevant to the amount worked out in step 1. The tax table you use depends on the period the income stream covers - that is, weekly, fortnightly or monthly. Note: Some payees may be eligible to claim the SAPTO. If the payee gives you a Withholding declaration indicating they want to claim a SAPTO entitlement through PAYG withholding, you should use the Tax table for seniors and pensioners to work out the amount to withhold from the amount calculated in step 1. Step 3 Some super income streams may be eligible for a tax offset. Use the following table to work out the tax offset amount for the payee. Super death benefits paid to a dependant Age of deceased Age of recipient Tax offset Below 60 years Below 60 years Taxed element x 15% Untaxed element - Nil 60 years and over Untaxed element × 10% 60 years and over Any age Untaxed element x 10% Untaxed element - Nil Step 4 Work out the amount to withhold by subtracting the tax offset per payment (step 3) from the withholding amount (step 2). Amount to withhold = withholding amount - tax offset Amount to withhold = withholding amount - tax offset If the tax offset amount is greater than the withholding amount, the amount to withhold is nil. Super death benefits paid to a non-dependant A person who is not a dependant of the deceased is not able to receive a super income stream. A super death benefit income stream that was being paid to a non-dependant prior to 1 July 2007 is taxed in the same manner as a super death benefit income stream paid to a dependant. Example This example uses the PAYG withholding tax tables that apply from 1 July 2015. Case C: Super death benefit income stream where the taxable component comprises a taxed element and an untaxed element Harriet is 58 and her husband, also 58, dies in July 2015. As a result of her husband's death, Harriet receives a fortnightly super death benefit income stream of $2,000. The tax-free component of Harriet's super death benefit income stream is $400. The taxable component of Harriet's super death benefit income stream is $1,600. Step 1: Harriet's $1,600 taxable component is comprised of a $600 taxed element and a $1,000 untaxed element. As Harriet is 58 and her husband was also under 60, withholding will apply to the full taxable component. Step 2: Using the Fortnightly tax table , work out the withholding required from the $1,600 taxable component. This is $226, assuming that Harriet is claiming the tax-free threshold. Step 3: Harriet is entitled to a tax offset. Tax offset = taxed element x 15% = $600 x 15% = $90 Step 4: Reduce the withholding amount ($226 as worked out in step 2) by the value of the tax offset ($90). Final withholding amount = withholding amount less tax offset = $226 - $90 = $136 Preservation age The withholding amount varies depending on whether the payee has reached their preservation age when the payment is made. Preservation age is determined using your payee's date of birth. For example, if a member was born on 1 October 1960, they will reach their preservation age of 56 on 1 October 2016. The table below will help with this: Preservation age by date of birth range Date of birth Preservation age Before 1/7/1960 55 1/7/1960-30/6/1961 56 1/7/1961-30/6/1962 57 1/7/1962-30/6/1963 58 1/7/1963-30/6/1964 59 After 30/6/1964 60 Payment summaries You must issue a PAYG payment summary - superannuation income stream to the member for the total of the payments made in the income year. This must be provided by 14 July. This date may be earlier if the member requests it. Payment summaries can also be printed using software that conforms with ATO reporting specifications. See also: • Payment summary information and reporting specifications on our Software developers website • Payment summary information and reporting specifications on our Software developers website