Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:1_865:p1
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 1 cl 865 (pt 1/8)
Character Range: 11643–14520

865              0.2190  106.4962
1,053            0.3527  222.1981
1,282            0.3127  180.0385
2,596            0.3100  176.5769
3,653            0.3800  358.3077
3,653  & over    0.4600  650.6154

Notes
    1. Scale 1 contains a negative value for one of the b coefficients. This is intentional.
    2. If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings section.
    3. Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.
    4. 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.
    5. Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.
    6. Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
    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 $26,000 ($500 per week) or less. Where the taxable income exceeds $26,000 but is less than $32,500 ($625 per week), the levy is shaded in at the rate of 10% of the excess over $26,000. Where a person's taxable income is $32,501 ($625 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
Parameter                           Scale 2   Scale 6
Weekly earnings threshold           500       843
Weekly earnings shade-in threshold  625       1,053
Medicare levy family threshold      43,846    43,846
Weekly family threshold divisor     52        52
Additional child                    4,027     4,027
Shading out point multiplier        0.1000    0.0500
Shading out point divisor           0.0800    0.0400
Weekly levy adjustment factor       500.0000  843.1900
Medicare levy                       0.0200    0.0100

Using a formula

Overview
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 – see 'Working out the weekly earnings').

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 the sections on 'Tax offsets' and 'Medicare levy adjustment' in this schedule.

Sample data