Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:8:p3
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 8 (pt 3/4)
Character Range: 175354–178121

a foreign resident with earnings of one of the following:
    –      $1,046 or more if paid weekly
    –      $2,092 or more if paid fortnightly
    –      $4,532.67 or more if paid monthly
    –      $13,598 or more if paid quarterly.

If your employee has not claimed the tax-free threshold, the study and training support loans component is calculated on earnings of:
    * $696 or more if paid weekly
    * $1,392 or more if paid fortnightly
    * $3,016.00 or more if paid monthly
    * $9,048 or more if paid quarterly.

You must withhold the study and training support loans component from all your employee's earnings, including taxable allowances, bonuses and commissions.
Example 1: weekly earnings
Employee has claimed the tax-free threshold and has weekly earnings of $1,095.84.
Ignoring cents and adding 99 cents, the STSL component = $1,095.99 × 1% = $11.00 rounded to the nearest dollar.

Example 2: fortnightly earnings

Employee has claimed the tax-free threshold and has fortnightly earnings of $2,455.78.

  Weekly equivalent of $2,455.78 = $1,227.99 ($2,455.78 ÷ 2, ignoring cents and adding 99 cents).

  Weekly STSL component = $1,227.99 × 2% = $25.00 rounded to the nearest dollar.

  Fortnightly STSL component = $50.00 ($25.00 × 2).

Example 3: monthly earnings

Employee has claimed the tax-free threshold and has monthly earnings of $5,688.45.

  Weekly equivalent of $5,688.45 = $1,312.99.
    ($5,688.45 × 3 ÷ 13, ignoring cents and adding 99 cents).

  Weekly STSL component = $1,312.99 × 2.5% = $33.00 rounded to the nearest dollar.

  Monthly STSL component = $143.00 ($33.00 × 13 ÷ 3, rounded to the nearest dollar).

Do not withhold any amount for study and training support loans debts from lump sum termination payments.

Coefficients to work out the weekly amounts to withhold

Your employee's total withholding, including the study and training support loans 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).

If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a study and training support loans debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the study and training support loans component and one will not – for example, name one 'scale 2' and