Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:1:p1
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 1 (pt 1/2)
Character Range: 6645–9607

Schedule 1 – Statement of formulas for calculating amounts to be withheld

This schedule 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.

The amounts, formulas and procedures in this schedule were last updated on 1 July 2024.

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 at ato.gov.au/taxtables, can be calculated using the formulas and coefficients contained in this schedule.

Using this schedule

If you develop your own payroll or accounting software package, this schedule provides the formulas and coefficients you will need to calculate the amounts to be withheld from payments made on a weekly, fortnightly, monthly or quarterly basis.

Separate scales apply to:
    * foreign residents
    * employees who have claimed or not claimed the tax-free threshold
    * employees claiming a full or half-exemption from the Medicare levy.

To assist employers who don't have a software package, our website ato.gov.au provides the following tools which are based on the formulas in this schedule:
    * tax withheld calculator
    * tax tables.

Payments covered include:
    * salary, wages, allowances and leave loading paid to employees
    * paid parental leave
    * directors' fees
    * salary and allowances paid to office holders (including members of parliament, statutory office holders, defence force members and police officers)
    * payments to labour-hire workers
    * payments to religious practitioners
    * government pensions
    * government education or training payments
    * compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).

Do not use this schedule for payments made to individuals employed under a working holiday makers visa. You must use Schedule 15 - Tax table for working holiday makers for all payments made to them, including lump sum payments.

Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for accuracy against the 'Sample data' section in this schedule.

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 at ato.gov.au/taxtables. The differences result from the rounding of components. Withholding calculated using either method is accepted.

Other statements of formulas

Statements of formulas for other classes of payees are also available. These include:
    * Schedule 8 - Statement of formulas for calculating study and training support loans components
    * Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry
    * Schedule 3 - Tax table for actors, variety