Document ID: chunk:federal_register_of_legislation:F2018L00775:body:0:p2
Version: federal_register_of_legislation:F2018L00775
Segment Type: other
Provision Reference: 
Character Range: 2639–5419

in the result and then add 99 cents.

   or

     * monthly payments - multiply the monthly payment by 3 and then divide by 13. Ignore any cents in the result and then add 99 cents.

Step 4

Calculate the withholding amount on the figure calculated in Step 3, using the appropriate formula from Statement of formulas for calculating amounts to be withheld (NAT 1004) or using the tables in Weekly tax table (NAT 1005).

If the payments are made fortnightly or monthly, calculate the withholding amounts using the following:

     * fortnightly payments – determine the weekly withholding. Multiply this amount by two.

or

     * monthly payments – determine the weekly withholding. Multiply this amount by 13, divide the product by 3.

Round the result to the nearest dollar.

Step 5

Adjust the amount calculated in Step 4 for the number of payments made before the payee's 60th birthday.

Adjusted          total number of payments
withholding   =    withholding amount (Step 4) x               in year
amount               number of payments
                before 60th birthday

Round the result to the nearest dollar.

Step 6

Calculate the superannuation tax offset applicable to the payment.

Taxable component of the payment x 15% = Superannuation tax offset

Round the result to the nearest dollar.

Step 7

Calculate the Notional amount to be withheld per payment.

Notional amount  Adjusted withholding amount (Step 5) – Superannuation
to be withheld  =  tax offset (Step 6)

Round the result to the nearest dollar.

Note: If the Superannuation tax offset is greater than the Adjusted withholding amount, the Notional amount to be withheld is nil.

Step 8

Using the appropriate formula below, calculate the Medicare levy adjustment applicable to the payment.

If the payee's Assessable income before 60th birthday (Step 1) is:

     * less than $21,655 – the payee's Medicare levy adjustment is nil.

     * greater than $21,655 but less than $27,068 – the payee's Medicare levy adjustment is equal to:

 (Assessable income before 60th birthday - $21,655) x 0.10 / number of payments before 60th birthday.

     * greater than $27,067 – the payee's Medicare levy adjustment is equal to:

 (Assessable income before 60th birthday x 0.02) / number of payments before 60th birthday

Round the result to the nearest dollar.

Step 9

To calculate the varied withholding amount, compare the Notional amount to be withheld (Step 7) to the Medicare levy adjustment (Step 8).

If the Notional amount to be withheld is more than the Medicare levy adjustment, withhold the Notional amount to be withheld (Step 7).

If the Notional amount to be withheld is less than the Medicare levy adjustment or zero, withhold the Medicare levy adjustment (Step 8).

EXAMPLE CALCULATIONS: