Taxation Administration Act Withholding Schedules 2017 (Cth)

Legislative Instrument

TAXATION ADMINISTRATION ACT

WITHHOLDING SCHEDULES 2017

I, Emma Rosenzweig, Deputy Commissioner of Taxation, make this determination under section 15-25 of Schedule 1 to the Taxation Administration Act 1953.

Emma Rosenzweig

Deputy Commissioner of Taxation

24 May 2017

Name of instrument

This determination is the Taxation Administration Act Withholding Schedules 2017.

Commencement

This instrument commences on 1 July 2017.

Repealing of existing instruments

This instrument repeals legislative instruments:

·Taxation Administration Act Withholding Schedules 2016 – F2016L01035, registered on 16 June 2016, and

·Taxation Administration Act Withholding Schedules Correction October 2016 – F2016L01506, registered on 27 September 2016

Purpose

(a) Withholding schedules specify the formulas and procedures to be used for working out the amount 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 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.

Withholding schedules

Each of the withholding schedules listed in the following table, has effect from the date of commencement of this instrument:

Schedule number Quick code number Title

1 52068 Schedule 1 – Statement of formulas for calculating amounts to be withheld

2 52069 Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry

3 52070 Schedule 3 – Tax table for actors, variety artists and other entertainers

4 52071 Schedule 4 – Tax table for return to work payments

5 52072 Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments

6 52073 Schedule 6 – Tax table for annuities

7 52074 Schedule 7 – Tax table for unused leave payments on termination of employment

8 52075 Schedule 8 – Statement of formulas for calculating HELP, SSL, TSL and SFSS components

9 52076 Schedule 9 – Tax table for seniors and pensioners

11 52077 Schedule 11 – Tax table for employment termination payments

12 52078 Schedule 12 – Tax table for superannuation lump sums

13 52079 Schedule 13 – Tax table for superannuation income streams

15 52080 Schedule 15: Tax table for working holiday makers

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

For payments made on or after 1 July 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), 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.

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).

See also:

■You can download a printable version of Statement of formulas for calculating amounts to be withheld (PDF, 412KB) (NAT 1004) 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
66	0.1900	0.1900
361	0.2337	2.9035
932	0.3477	44.1189
1,323	0.3450	41.6024
3,111	0.3900	101.1408
3,111 & over	0.4700	350.0639

Where the employee claimed the tax-free threshold in Tax file number declaration – Scale 2

Weekly earnings (x) less than $	a	b
355	-	-
416	0.1900	67.4635
520	0.2900	109.1077
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	0.4700	514.1935

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	0.4500	352.2115

Where a tax file number (TFN) was not provided by employee –Scale 4

Earnings	Tax rate
Resident $1 & over	0.4700
Foreign resident $1 & over	0.4500

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	0.4500	514.1923

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	-	-
702	0.1900	67.4635
711	0.2400	102.5990
878	0.3777	200.5779
1,282	0.3377	165.4425
1,673	0.3350	161.9810
3,461	0.3800	237.2694
3,461 & over	0.4600	514.1925

Notes

If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings.

Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.

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.

Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.

Tax offsets may be allowed only where scales 2, 5 or 6 are applied.

Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only.

For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $21,655 ($416 per week) or less. Where the taxable income exceeds $21,655 but is less than $27,068 ($520 per week), the levy is shaded in at the rate of 10% of the excess over $21,655. Where a person’s taxable income is $27,068 ($520 per week) or more, Medicare is levied at the rate of 2% of total taxable income.

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	416	702
Weekly earnings shade-in threshold	520	878
Medicare levy family threshold	36,541	36,541
Weekly family threshold divisor	52	52
Additional child	3,356	3,356
Shading out point multiplier	0.1000	0.0500
Shading out point divisor	0.0800	0.0400
Weekly levy adjustment factor	416.4400	702.7100
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.

Find out about:

■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

■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 adjustment.

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.

Extra withholding amount

Weekly earnings $	Additional withholding $
725 to 1,649	3
1,650 to 3,449	4
3,450 and over	9

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.

Extra withholding amount

Fortnightly earnings $	Additional withholding $
1,400 to 3,299	12
3,300 to 6,799	17
6,800 and over	36

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

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.

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.

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.

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, may be entitled to a Medicare levy adjustment if they have weekly earnings of one of the following:

■$416 or more where scale 2 is applied

■$702 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:

■$520 or more where scale 2 is applied

■$878 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 = $702.71 (36,541 ÷ 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 3,356 and add the result to 36,541

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 = ([3,356 × 2] + 36,541) ÷ 52

WFT = 831.7885 or $831.79 (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 = ([3,356 × 6] + 36,541) ÷ 52

WFT = 1,089.9423 or $1,089.94 (rounded to the nearest cent)

SOP = (WFT × 0.1) ÷ 0.0800

SOP = ($1,089.94 × 0.1) ÷ 0.0800

SOP = 1,362.4250 or $1,362 (ignoring cents)

Weekly Levy Adjustment (WLA)

Where scale 2 is applied

Where weekly earnings are $416 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:

If x is less than $520, WLA = (x – 416.44) × 0.1

If x is $520 or more but less than WFT, WLA = x × 0.0200

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 $702 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:

If x is less than $878, WLA = (x – 702.71) × 0.05

If x is $878 or more but less than WFT, WLA = x × 0.0100

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 $520, WLA is calculated using formula (1):

WLA = (465.99 – 416.44) × 0.1
= 4.9550 or $5.00 (rounded to the nearest dollar).

Example 2

Employee's weekly earnings are $880.47 and the number of children claimed at question 12 is three. Scale 6 is applied.

x = 880.99
WFT = ([3,356 × 3] + 36,541) ÷ 52
= 896.3269 or $896.33 (rounded to the nearest cent)

As x is greater than $878 and less than WFT, WLA is calculated using formula (2):

WLA = 880.99 × 0.01
= 8.8099 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 = ([3,356 × 4] + 36,541) ÷ 52
= 960.8654 or $960.87 (rounded to the nearest cent).

SOP = (960.87 × 0.1) ÷ 0.08
= 1,201.0875 or $1,201 (ignoring cents).

As x is greater than WFT and less than SOP, WLA is calculated using formula (3):

WLA = (960.87 × 0.020) – ([982.99 – 960.87] × 0.0800)
= 17.4478 or $17.00 (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 = ([3,356 × 1] +36,541) ÷ 52

= 767.2500 or $767.25 (rounded to the nearest cent).

SOP = (767.25 × 0.1) ÷ 0.08

= 959.0625 or $959 (ignoring cents).

As x is greater than WFT and less than SOP, formula (3) is used:

WLA = (767.25 × 0.020) – ([797.99 – 767.25] × 0.0800)

= 12.8858 or $13.00 (rounded to the nearest dollar).

The fortnightly levy adjustment is therefore $26.00 ($13.00 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 = $702.71

As x is greater than $520 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 = 1,103.99

Weekly withholding amount (y)

= (a × x) – b

= (0.3477 × 1,103.99) – 165.4435

= 218.4138 or $218.00 (rounded to nearest dollar)

Levy adjustment: weekly earnings are greater than WFT ($1,025.40) and less than the SOP ($1,281) appropriate to employee with five children. Formula (3) applies.

= (1,025.40 × 0.0200) – ([1,103.99 – 1,025.40] × 0.0800)

= 20.5080 – 6.2872

= 14.2208 or $14.00 (rounded to nearest dollar)

Net weekly withholding amount

$218.00 – $14.00 = $204.00

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 $4,160.33. 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 $959 appropriate to an employee with one child.

Therefore, scale 2 is applied.

Convert to weekly equivalent

= ($4,160.33 + 0.01) × 3 ÷ 13

= 960.0785 or $960 (ignore cents)

x = 960.99

Weekly withholding amount (y)

= (a × x) – b

= (0.3477 × 960.99) – 165.4435

= 168.6927 or $169.00 (rounded to nearest dollar)

Monthly withholding amount

$169.00 × 13 ÷ 3 = $732.00 (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

$732.00 – $113.00 = $619.00

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 can be expressed in a mathematical form, using the formulas and coefficients provided.

To work out withholding amounts using the formulas:

Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result.

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.

Round the result to the nearest dollar.

Divide this amount by five to convert it to the daily equivalent.

Round the daily withholding amount to the nearest dollar.

Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners.

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 sums of 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 $
65	12.00	0.00	21.00	0.00	0.00
66	13.00	0.00	21.00	0.00	0.00
116	24.00	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	81.00	1.00	117.00	1.00	1.00
361	82.00	1.00	117.00	1.00	1.00
415	101.00	12.00	135.00	12.00	12.00
416	101.00	12.00	135.00	12.00	12.00
519	137.00	42.00	169.00	31.00	31.00
520	137.00	42.00	169.00	32.00	32.00
701	200.00	80.00	228.00	66.00	66.00
702	200.00	80.00	228.00	66.00	66.00
710	203.00	82.00	231.00	68.00	68.00
711	203.00	82.00	231.00	68.00	68.00
877	261.00	140.00	285.00	122.00	131.00
878	262.00	140.00	285.00	123.00	131.00
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	618.00	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	1029.00	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	1277.00	1113.00	1205.00	1043.00	1078.00
3461	1277.00	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 $
130	24.00	0.00	42.00	0.00	0.00
132	26.00	0.00	42.00	0.00	0.00
232	48.00	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	162.00	2.00	234.00	2.00	2.00
722	164.00	2.00	234.00	2.00	2.00
830	202.00	24.00	270.00	24.00	24.00
832	202.00	24.00	270.00	24.00	24.00
1038	274.00	84.00	338.00	62.00	62.00
1040	274.00	84.00	338.00	64.00	64.00
1402	400.00	160.00	456.00	132.00	132.00
1404	400.00	160.00	456.00	132.00	132.00
1420	406.00	164.00	462.00	136.00	136.00
1422	406.00	164.00	462.00	136.00	136.00
1754	522.00	280.00	570.00	244.00	262.00
1756	524.00	280.00	570.00	246.00	262.00
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	1236.00	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	2058.00	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	2554.00	2226.00	2410.00	2086.00	2156.00
6922	2554.00	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 $
281.67	52.00	0.00	91.00	0.00	0.00
286.00	56.00	0.00	91.00	0.00	0.00
502.67	104.00	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	351.00	4.00	507.00	4.00	4.00
1564.33	355.00	4.00	507.00	4.00	4.00
1798.33	438.00	52.00	585.00	52.00	52.00
1802.67	438.00	52.00	585.00	52.00	52.00
2249.00	594.00	182.00	732.00	134.00	134.00
2253.33	594.00	182.00	732.00	139.00	139.00
3037.67	867.00	347.00	988.00	286.00	286.00
3042.00	867.00	347.00	988.00	286.00	286.00
3076.67	880.00	355.00	1001.00	295.00	295.00
3081.00	880.00	355.00	1001.00	295.00	295.00
3800.33	1131.00	607.00	1235.00	529.00	568.00
3804.67	1135.00	607.00	1235.00	533.00	568.00
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	2678.00	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	4459.00	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	5534.00	4823.00	5222.00	4520.00	4671.00
14997.67	5534.00	4823.00	5226.00	4524.00	4671.00

Sample data – Scale 2

Weekly Medicare levy adjustment

Adjustment amount

Weekly earnings $	Spouse only $	1 child $	2 children $	3 children $	4 children $	5 children $
415	0.00	0.00	0.00	0.00	0.00	0.00
416	0.00	0.00	0.00	0.00	0.00	0.00
467	5.00	5.00	5.00	5.00	5.00	5.00
468	5.00	5.00	5.00	5.00	5.00	5.00
519	10.00	10.00	10.00	10.00	10.00	10.00
520	10.00	10.00	10.00	10.00	10.00	10.00
546	11.00	11.00	11.00	11.00	11.00	11.00
547	11.00	11.00	11.00	11.00	11.00	11.00
573	11.00	11.00	11.00	11.00	11.00	11.00
574	11.00	11.00	11.00	11.00	11.00	11.00
600	12.00	12.00	12.00	12.00	12.00	12.00
601	12.00	12.00	12.00	12.00	12.00	12.00
627	13.00	13.00	13.00	13.00	13.00	13.00
628	13.00	13.00	13.00	13.00	13.00	13.00
654	13.00	13.00	13.00	13.00	13.00	13.00
655	13.00	13.00	13.00	13.00	13.00	13.00
681	14.00	14.00	14.00	14.00	14.00	14.00
682	14.00	14.00	14.00	14.00	14.00	14.00
708	14.00	14.00	14.00	14.00	14.00	14.00
709	13.00	14.00	14.00	14.00	14.00	14.00
735	11.00	15.00	15.00	15.00	15.00	15.00
736	11.00	15.00	15.00	15.00	15.00	15.00
762	9.00	15.00	15.00	15.00	15.00	15.00
763	9.00	15.00	15.00	15.00	15.00	15.00
789	7.00	14.00	16.00	16.00	16.00	16.00
790	7.00	13.00	16.00	16.00	16.00	16.00
816	5.00	11.00	16.00	16.00	16.00	16.00
817	5.00	11.00	16.00	16.00	16.00	16.00
843	3.00	9.00	16.00	17.00	17.00	17.00
844	3.00	9.00	16.00	17.00	17.00	17.00
870	1.00	7.00	13.00	17.00	17.00	17.00
871	1.00	7.00	13.00	17.00	17.00	17.00
897	0.00	5.00	11.00	18.00	18.00	18.00
898	0.00	5.00	11.00	18.00	18.00	18.00
924	0.00	3.00	9.00	16.00	18.00	18.00
925	0.00	3.00	9.00	16.00	19.00	19.00
951	0.00	1.00	7.00	13.00	19.00	19.00
952	0.00	0.00	7.00	13.00	19.00	19.00
978	0.00	0.00	5.00	11.00	18.00	20.00
979	0.00	0.00	5.00	11.00	18.00	20.00
1005	0.00	0.00	3.00	9.00	16.00	20.00
1006	0.00	0.00	3.00	9.00	16.00	20.00
1032	0.00	0.00	1.00	7.00	13.00	20.00
1033	0.00	0.00	0.00	7.00	13.00	20.00
1200	0.00	0.00	0.00	0.00	0.00	6.00
1201	0.00	0.00	0.00	0.00	0.00	6.00
1280	0.00	0.00	0.00	0.00	0.00	0.00
1281	0.00	0.00	0.00	0.00	0.00	0.00

Fortnightly Medicare levy adjustment

Adjustment amount

Fortnightly earnings $	Spouse only $	1 child $	2 children $	3 children $	4 children $	5 children $
830	0.00	0.00	0.00	0.00	0.00	0.00
832	0.00	0.00	0.00	0.00	0.00	0.00
934	10.00	10.00	10.00	10.00	10.00	10.00
936	10.00	10.00	10.00	10.00	10.00	10.00
1038	20.00	20.00	20.00	20.00	20.00	20.00
1040	20.00	20.00	20.00	20.00	20.00	20.00
1092	22.00	22.00	22.00	22.00	22.00	22.00
1094	22.00	22.00	22.00	22.00	22.00	22.00
1146	22.00	22.00	22.00	22.00	22.00	22.00
1148	22.00	22.00	22.00	22.00	22.00	22.00
1200	24.00	24.00	24.00	24.00	24.00	24.00
1202	24.00	24.00	24.00	24.00	24.00	24.00
1254	26.00	26.00	26.00	26.00	26.00	26.00
1256	26.00	26.00	26.00	26.00	26.00	26.00
1308	26.00	26.00	26.00	26.00	26.00	26.00
1310	26.00	26.00	26.00	26.00	26.00	26.00
1362	28.00	28.00	28.00	28.00	28.00	28.00
1364	28.00	28.00	28.00	28.00	28.00	28.00
1416	28.00	28.00	28.00	28.00	28.00	28.00
1418	26.00	28.00	28.00	28.00	28.00	28.00
1470	22.00	30.00	30.00	30.00	30.00	30.00
1472	22.00	30.00	30.00	30.00	30.00	30.00
1524	18.00	30.00	30.00	30.00	30.00	30.00
1526	18.00	30.00	30.00	30.00	30.00	30.00
1578	14.00	28.00	32.00	32.00	32.00	32.00
1580	14.00	26.00	32.00	32.00	32.00	32.00
1632	10.00	22.00	32.00	32.00	32.00	32.00
1634	10.00	22.00	32.00	32.00	32.00	32.00
1686	6.00	18.00	32.00	34.00	34.00	34.00
1688	6.00	18.00	32.00	34.00	34.00	34.00
1740	2.00	14.00	26.00	34.00	34.00	34.00
1742	2.00	14.00	26.00	34.00	34.00	34.00
1794	0.00	10.00	22.00	36.00	36.00	36.00
1796	0.00	10.00	22.00	36.00	36.00	36.00
1848	0.00	6.00	18.00	32.00	36.00	36.00
1850	0.00	6.00	18.00	32.00	38.00	38.00
1902	0.00	2.00	14.00	26.00	38.00	38.00
1904	0.00	0.00	14.00	26.00	38.00	38.00
1956	0.00	0.00	10.00	22.00	36.00	40.00
1958	0.00	0.00	10.00	22.00	36.00	40.00
2010	0.00	0.00	6.00	18.00	32.00	40.00
2012	0.00	0.00	6.00	18.00	32.00	40.00
2064	0.00	0.00	2.00	14.00	26.00	40.00
2066	0.00	0.00	0.00	14.00	26.00	40.00
2400	0.00	0.00	0.00	0.00	0.00	12.00
2402	0.00	0.00	0.00	0.00	0.00	12.00
2560	0.00	0.00	0.00	0.00	0.00	0.00
2562	0.00	0.00	0.00	0.00	0.00	0.00

Monthly Medicare levy adjustment

Adjustment amount

Monthly earnings $	Spouse only $	1 child $	2 children $	3 children $	4 children $	5 children $
1798.33	0.00	0.00	0.00	0.00	0.00	0.00
1802.67	0.00	0.00	0.00	0.00	0.00	0.00
2023.67	22.00	22.00	22.00	22.00	22.00	22.00
2028.00	22.00	22.00	22.00	22.00	22.00	22.00
2249.00	43.00	43.00	43.00	43.00	43.00	43.00
2253.33	43.00	43.00	43.00	43.00	43.00	43.00
2366.00	48.00	48.00	48.00	48.00	48.00	48.00
2370.33	48.00	48.00	48.00	48.00	48.00	48.00
2483.00	48.00	48.00	48.00	48.00	48.00	48.00
2487.33	48.00	48.00	48.00	48.00	48.00	48.00
2600.00	52.00	52.00	52.00	52.00	52.00	52.00
2604.33	52.00	52.00	52.00	52.00	52.00	52.00
2717.00	56.00	56.00	56.00	56.00	56.00	56.00
2721.33	56.00	56.00	56.00	56.00	56.00	56.00
2834.00	56.00	56.00	56.00	56.00	56.00	56.00
2838.33	56.00	56.00	56.00	56.00	56.00	56.00
2951.00	61.00	61.00	61.00	61.00	61.00	61.00
2955.33	61.00	61.00	61.00	61.00	61.00	61.00
3068.00	61.00	61.00	61.00	61.00	61.00	61.00
3072.33	56.00	61.00	61.00	61.00	61.00	61.00
3185.00	48.00	65.00	65.00	65.00	65.00	65.00
3189.33	48.00	65.00	65.00	65.00	65.00	65.00
3302.00	39.00	65.00	65.00	65.00	65.00	65.00
3306.33	39.00	65.00	65.00	65.00	65.00	65.00
3419.00	30.00	61.00	69.00	69.00	69.00	69.00
3423.33	30.00	56.00	69.00	69.00	69.00	69.00
3536.00	22.00	48.00	69.00	69.00	69.00	69.00
3540.33	22.00	48.00	69.00	69.00	69.00	69.00
3653.00	13.00	39.00	69.00	74.00	74.00	74.00
3657.33	13.00	39.00	69.00	74.00	74.00	74.00
3770.00	4.00	30.00	56.00	74.00	74.00	74.00
3774.33	4.00	30.00	56.00	74.00	74.00	74.00
3887.00	0.00	22.00	48.00	78.00	78.00	78.00
3891.33	0.00	22.00	48.00	78.00	78.00	78.00
4004.00	0.00	13.00	39.00	69.00	78.00	78.00
4008.33	0.00	13.00	39.00	69.00	82.00	82.00
4121.00	0.00	4.00	30.00	56.00	82.00	82.00
4125.33	0.00	0.00	30.00	56.00	82.00	82.00
4238.00	0.00	0.00	22.00	48.00	78.00	87.00
4242.33	0.00	0.00	22.00	48.00	78.00	87.00
4355.00	0.00	0.00	13.00	39.00	69.00	87.00
4359.33	0.00	0.00	13.00	39.00	69.00	87.00
4472.00	0.00	0.00	4.00	30.00	56.00	87.00
4476.33	0.00	0.00	0.00	30.00	56.00	87.00
5200.00	0.00	0.00	0.00	0.00	0.00	26.00
5204.33	0.00	0.00	0.00	0.00	0.00	26.00
5546.67	0.00	0.00	0.00	0.00	0.00	0.00
5551.00	0.00	0.00	0.00	0.00	0.00	0.00

Sample data – Scale 6

Weekly Medicare half-levy adjustment

Adjustment amount

Weekly earnings $	1 child $	2 children $	3 children $	4 children $	5 children $
701	0.00	0.00	0.00	0.00	0.00
702	0.00	0.00	0.00	0.00	0.00
789	4.00	4.00	4.00	4.00	4.00
790	4.00	4.00	4.00	4.00	4.00
877	9.00	9.00	9.00	9.00	9.00
878	3.00	6.00	9.00	9.00	9.00
893	3.00	6.00	9.00	9.00	9.00
894	3.00	6.00	9.00	9.00	9.00
909	2.00	5.00	8.00	9.00	9.00
910	2.00	5.00	8.00	9.00	9.00
925	1.00	5.00	8.00	9.00	9.00
926	1.00	5.00	8.00	9.00	9.00
941	1.00	4.00	7.00	9.00	9.00
942	1.00	4.00	7.00	9.00	9.00
957	0.00	3.00	6.00	10.00	10.00
958	0.00	3.00	6.00	10.00	10.00
973	0.00	3.00	6.00	9.00	10.00
974	0.00	3.00	6.00	9.00	10.00
989	0.00	2.00	5.00	8.00	10.00
990	0.00	2.00	5.00	8.00	10.00
1005	0.00	1.00	5.00	8.00	10.00
1006	0.00	1.00	5.00	8.00	10.00
1021	0.00	1.00	4.00	7.00	10.00
1022	0.00	1.00	4.00	7.00	10.00
1037	0.00	0.00	3.00	7.00	10.00
1038	0.00	0.00	3.00	6.00	10.00
1053	0.00	0.00	3.00	6.00	9.00
1054	0.00	0.00	3.00	6.00	9.00
1069	0.00	0.00	2.00	5.00	8.00
1070	0.00	0.00	2.00	5.00	8.00
1085	0.00	0.00	1.00	5.00	8.00
1086	0.00	0.00	1.00	5.00	8.00
1101	0.00	0.00	1.00	4.00	7.00
1102	0.00	0.00	1.00	4.00	7.00
1117	0.00	0.00	0.00	3.00	7.00
1118	0.00	0.00	0.00	3.00	7.00
1133	0.00	0.00	0.00	3.00	6.00
1134	0.00	0.00	0.00	3.00	6.00
1149	0.00	0.00	0.00	2.00	5.00
1150	0.00	0.00	0.00	2.00	5.00
1165	0.00	0.00	0.00	1.00	5.00
1166	0.00	0.00	0.00	1.00	5.00
1181	0.00	0.00	0.00	1.00	4.00
1182	0.00	0.00	0.00	1.00	4.00
1200	0.00	0.00	0.00	0.00	3.00
1201	0.00	0.00	0.00	0.00	3.00
1280	0.00	0.00	0.00	0.00	0.00
1281	0.00	0.00	0.00	0.00	0.00

Fortnightly Medicare half-levy adjustment

Adjustment amount

Fortnightly earnings $	1 child $	2 children $	3 children $	4 children $	5 children $
1402	0.00	0.00	0.00	0.00	0.00
1404	0.00	0.00	0.00	0.00	0.00
1578	8.00	8.00	8.00	8.00	8.00
1580	8.00	8.00	8.00	8.00	8.00
1754	18.00	18.00	18.00	18.00	18.00
1756	6.00	12.00	18.00	18.00	18.00
1786	6.00	12.00	18.00	18.00	18.00
1788	6.00	12.00	18.00	18.00	18.00
1818	4.00	10.00	16.00	18.00	18.00
1820	4.00	10.00	16.00	18.00	18.00
1850	2.00	10.00	16.00	18.00	18.00
1852	2.00	10.00	16.00	18.00	18.00
1882	2.00	8.00	14.00	18.00	18.00
1884	2.00	8.00	14.00	18.00	18.00
1914	0.00	6.00	12.00	20.00	20.00
1916	0.00	6.00	12.00	20.00	20.00
1946	0.00	6.00	12.00	18.00	20.00
1948	0.00	6.00	12.00	18.00	20.00
1978	0.00	4.00	10.00	16.00	20.00
1980	0.00	4.00	10.00	16.00	20.00
2010	0.00	2.00	10.00	16.00	20.00
2012	0.00	2.00	10.00	16.00	20.00
2042	0.00	2.00	8.00	14.00	20.00
2044	0.00	2.00	8.00	14.00	20.00
2074	0.00	0.00	6.00	14.00	20.00
2076	0.00	0.00	6.00	12.00	20.00
2106	0.00	0.00	6.00	12.00	18.00
2108	0.00	0.00	6.00	12.00	18.00
2138	0.00	0.00	4.00	10.00	16.00
2140	0.00	0.00	4.00	10.00	16.00
2170	0.00	0.00	2.00	10.00	16.00
2172	0.00	0.00	2.00	10.00	16.00
2202	0.00	0.00	2.00	8.00	14.00
2204	0.00	0.00	2.00	8.00	14.00
2234	0.00	0.00	0.00	6.00	14.00
2236	0.00	0.00	0.00	6.00	14.00
2266	0.00	0.00	0.00	6.00	12.00
2268	0.00	0.00	0.00	6.00	12.00
2298	0.00	0.00	0.00	4.00	10.00
2300	0.00	0.00	0.00	4.00	10.00
2330	0.00	0.00	0.00	2.00	10.00
2332	0.00	0.00	0.00	2.00	10.00
2362	0.00	0.00	0.00	2.00	8.00
2364	0.00	0.00	0.00	2.00	8.00
2400	0.00	0.00	0.00	0.00	6.00
2402	0.00	0.00	0.00	0.00	6.00
2560	0.00	0.00	0.00	0.00	0.00
2562	0.00	0.00	0.00	0.00	0.00

Monthly Medicare half-levy adjustment

Adjustment amount

Monthly earnings $	1 child $	2 children $	3 children $	4 children $	5 children $
3037.67	0.00	0.00	0.00	0.00	0.00
3042.00	0.00	0.00	0.00	0.00	0.00
3419.00	17.00	17.00	17.00	17.00	17.00
3423.33	17.00	17.00	17.00	17.00	17.00
3800.33	39.00	39.00	39.00	39.00	39.00
3804.67	13.00	26.00	39.00	39.00	39.00
3869.67	13.00	26.00	39.00	39.00	39.00
3874.00	13.00	26.00	39.00	39.00	39.00
3939.00	9.00	22.00	35.00	39.00	39.00
3943.33	9.00	22.00	35.00	39.00	39.00
4008.33	4.00	22.00	35.00	39.00	39.00
4012.67	4.00	22.00	35.00	39.00	39.00
4077.67	4.00	17.00	30.00	39.00	39.00
4082.00	4.00	17.00	30.00	39.00	39.00
4147.00	0.00	13.00	26.00	43.00	43.00
4151.33	0.00	13.00	26.00	43.00	43.00
4216.33	0.00	13.00	26.00	39.00	43.00
4220.67	0.00	13.00	26.00	39.00	43.00
4285.67	0.00	9.00	22.00	35.00	43.00
4290.00	0.00	9.00	22.00	35.00	43.00
4355.00	0.00	4.00	22.00	35.00	43.00
4359.33	0.00	4.00	22.00	35.00	43.00
4424.33	0.00	4.00	17.00	30.00	43.00
4428.67	0.00	4.00	17.00	30.00	43.00
4493.67	0.00	0.00	13.00	30.00	43.00
4498.00	0.00	0.00	13.00	26.00	43.00
4563.00	0.00	0.00	13.00	26.00	39.00
4567.33	0.00	0.00	13.00	26.00	39.00
4632.33	0.00	0.00	9.00	22.00	35.00
4636.67	0.00	0.00	9.00	22.00	35.00
4701.67	0.00	0.00	4.00	22.00	35.00
4706.00	0.00	0.00	4.00	22.00	35.00
4771.00	0.00	0.00	4.00	17.00	30.00
4775.33	0.00	0.00	4.00	17.00	30.00
4840.33	0.00	0.00	0.00	13.00	30.00
4844.67	0.00	0.00	0.00	13.00	30.00
4909.67	0.00	0.00	0.00	13.00	26.00
4914.00	0.00	0.00	0.00	13.00	26.00
4979.00	0.00	0.00	0.00	9.00	22.00
4983.33	0.00	0.00	0.00	9.00	22.00
5048.33	0.00	0.00	0.00	4.00	22.00
5052.67	0.00	0.00	0.00	4.00	22.00
5117.67	0.00	0.00	0.00	4.00	17.00
5122.00	0.00	0.00	0.00	4.00	17.00
5200.00	0.00	0.00	0.00	0.00	13.00
5204.33	0.00	0.00	0.00	0.00	13.00
5546.67	0.00	0.00	0.00	0.00	0.00
5551.00	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

■Tax table for individuals employed in the horticultural or shearing industry

■Tax table for actors, variety artists and other entertainers

■Tax table for seniors and pensioners

■Tax table for working holiday makers.

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 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 47% from any payment you make to a resident employee and 45% 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.

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 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 47% from any payment you make to a resident employee and 45% 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 (includes ABSTUDY 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.

Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.

Withholding declarations

An employee may use a Withholding declaration 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.

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.

Next step:

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

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.

For more information, refer to Withholding for allowances.

Leave loading

If you pay leave loading as a lump sum, use Tax table for back payments, commissions, bonuses and similar payments 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 leave payments 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.

Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments.

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 amount, 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.

Medicare levy adjustment

To claim the Medicare levy adjustment (available in certain situations), your employee must lodge a Medicare levy variation declaration with their Tax file number declaration.

Some employees may be liable for an increased rate of the Medicare levy surcharge as a result of the income for surcharge purposes tests. They can lodge a Medicare levy variation declaration, requesting you to increase the amount to be withheld from their payments.

Next step:

■Medicare levy adjustment

Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry

For payments made on or after 1 July 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 sections 12-35 of Schedule 1 to the TAA.

Next step:

■Use the Withholding look-up tool to quickly work out the amount to withhold (XLSX, 56KB).

Using this table

You should use this table if you make payments to individuals in the horticultural industry who:

■work in any process associated with the production, cultivation or harvest of a horticultural crop

■perform the process on the grower’s property

■do not work for the same grower for a continuous period exceeding six months

■have given you a valid Tax file number declaration and have claimed the tax-free threshold.

Also, use this table if you make payments to individuals in the shearing industry such as shearers, crutchers, wool classers, cooks, shed hands and pressers who:

■have given you a valid Tax file number declaration (NAT 3092) and have claimed the tax-free threshold

■do not work for the same employer for a continuous period exceeding six months.

For all other circumstances use the relevant PAYG withholding weekly or fortnightly tax table.

See also:

■You can download a printable version of Tax table for individuals employed in the horticultural or shearing industry (NAT 1013, 518KB) in Portable Document Format (PDF).

If you employ individuals under the Seasonal labour mobility program this tax table does not apply. For these individuals you are required to withhold at 15%.

For more information about the program, refer to:

■Seasonal Worker Program

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers.

Working out the withholding amount

To work out the amount you need to withhold you must

Input your employees total earnings into the Withholding look-up tool (XLSX, 56KB).

Use the appropriate column to find the correct amount to withhold

- column 2 if the resident employee has given you a TFN

- column 3 if the resident employee has not given you a TFN

- column 4 if the foreign resident employee has given you a TFN

- column 5 if the foreign resident employee has not given you a TFN.

Example
An employee has earnings of $231.50.
To work out the correct amount to withhold, ignore cents, input $231 into the Withholding look-up tool (XLSX, 56KB).
If the employee is:

■ a resident employee and has given you a TFN use column 2 to find the correct amount to withhold ($30)

■ a resident employee and has not given you a TFN use column 3 to find the correct amount to withhold ($108)

■ a foreign employee and has given you a TFN use column 4 to find the correct amount to withhold ($75)

■ a foreign employee and has not given you a TFN use column 5 to find the correct amount to withhold ($103).

Resident employees

The standard rate of withholding of 13% applies if an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding look-up tool (XLSX, 56KB).

If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding look-up tool (XLSX, 56KB).

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, you must withhold amounts using the figures shown in column 4 of the Withholding look-up tool (XLSX, 56KB).

■If they have not given you a valid TFN, you must withhold at 45% using the figures in column 5 of the Withholding look-up tool (XLSX, 56KB).

Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.

Pay period

The rates in this tax table apply irrespective of the pay period.

Using a formula

The withholding amounts shown in this table can be expressed in mathematical form.

If you have developed your own payroll software package, you can use the formulas and coefficients outlined below.

The formulas comprise linear equations of the form y = ax, where:

■y is the amount to be withheld expressed in dollars

■x is earnings for the pay period, ignoring any cents

■a is the value of the coefficient as shown in table A.

Table A: Resident or foreign resident rate

Resident – a	Foreign resident – a
Tax file number	0.13	0.325
No tax file number	0.47	0.45

Rounding of withholding amounts

The withholding amounts calculated as a result of applying 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.

Accounting software

Software written in accordance with the formulas in this tax table should be tested for accuracy against the Withholding look-up tool (XLSX, 56KB). 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 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 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 47% from any payment you make to a resident employee and 45% 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.

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 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 47% from any payment you make to a resident employee and 45% 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 (includes ABSTUDY SSL debts)

■Trade Support Loan (TSL) debts

■Financial Supplement debts.

Varying your PAYG withholding

If your employee believes that, for their circumstances, the amount you withhold will be too much, they may apply to us for a variation to reduce the amount of withholding.

For more information, refer to Varying your PAYG withholding.

Schedule 3 – Tax table for actors, variety artists and other entertainers

For payments made on or after 1 July 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 section 12-35 of Schedule 1 to the TAA.

See also:

■Use the Withholding look-up tool to quickly work out the amount to withhold (XLSX, 56KB).

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.

For these types of payments the Commissioner has varied the rate of withholding to 20% of the payment.

For more information, refer to Performing artists contracted to perform promotional activity.

Next step:

■You can download a printable version of the Tax table for actors, variety artists and other entertainers (PDF, 322KB) (NAT 1023) 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 Foreign resident entertainment, sports, construction and casino gaming 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 this tax table, you must:

Ignore any cents, input the employee's daily earnings into the Withholding look-up tool (XLSX, 56KB) and refer to the corresponding amount to be withheld in column 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 (XLSX, 56KB) 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.

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

Coefficients where tax-free threshold claimed

Weekly earnings (x) less than	a	b
$443	0	0
$520	0.1520	67.4635
$650	0.2320	109.1077
$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	0.3760	514.1935

Table B: Employee has not claimed the tax-free threshold

Coefficients where tax-free threshold not claimed

Weekly earnings (x) less than	a	b
$83	0.1520	0.1520
$451	0.1870	2.9035
$1,165	0.2782	44.1189
$1,653	0.2760	41.6024
$3,889	0.3120	101.1408
$3,889 & over	0.3760	350.0639

To work out withholding amounts using the formulas, you must:

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.

Calculate the weekly amount by applying the relevant coefficients from table A or B above, rounding to the nearest dollar.

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.

4. $500 × 2 = $1,000. Add 99 cents to the result = $1,000.99.

5. $1,000.99 × 0.2782 – 165.4435 = $113.0319. Round to the nearest dollar = $113.

6. $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.

Accounting software

Software written in accordance with the formulas in this table should be tested for accuracy against the Withholding look-up tool (XLSX, 56KB). 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 47% from any payment you make to a resident employee and 45% 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.

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 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 47% from any payment you make to a resident employee and 45% 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 (includes ABSTUDY 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.

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.

Withholding declarations

An employee may use a Withholding declaration 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.

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 45% 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 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 45 cents for each $1 of earnings over $3,460

Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don’t make any adjustments to the amount you withhold.

Schedule 4 – Tax table for return to work payments

For payments made on or after 1 July 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 section 12-50 of Schedule 1 to the TAA.

Using this table

You should use this table if you pay an individual to resume working for, or providing services to, you or any other entity.

We have a calculator to help you work out the correct amount of tax to withhold from payments to most employees. To access the calculator, refer to Tax withheld calculator.

Working out the withholding amount

To work out the amount you need to withhold, multiply the amount of the return to work payment by 34.5% (32.5% + 2.0% Medicare levy).

Example

George previously worked for IT Services Pty Ltd. Due to a shortage in IT personnel, IT Services Pty Ltd offered George a position if he would return to work for it.

He was paid $18,000 to start work, in addition to his salary.

The total amount IT Services Pty Ltd must withhold from the return to work payment is 34.5% × $18,000 = $6,210.

Rounding of withholding amounts

Withholding amounts calculated should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.

Tax file number 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 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 and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) if all of the following apply:

■they have not quoted their tax file number (TFN )

■they have not claimed an exemption from quoting their TFN

■they have not advised you that they have applied for a TFN or 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), they have 28 days to give you their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment made to a resident employee and 45% from any payment made to a foreign resident employee (ignoring any cents) unless we tell you not to.

Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments

For payments made on or after 1 July 2017

Withholding limit

There is a withholding limit of 47% 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.

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.

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.

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 when 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 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.

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 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.

Part E: Reduction in general defined benefit income cap

Use this part when a reduction in the general defined benefit income cap is required to be calculated due to one of the following circumstances:

■where the payee turns 60 years old during the financial year

■where the payee starts an income stream part way through a financial year

■where the payee starts a reversionary income stream and the payee was under 60 years old and the deceased was over 60 years old.

If any of the above applies the following formula is used to calculate the revised cap:

General defined benefit cap x (1 + number of days remaining in the financial year)

Number of days in financial year

Turning 60 during the financial year

Where a payee is in receipt of a capped defined benefit income stream prior to turning 60, use part A to calculate the withholding amount applicable for that period.

For the income they receive from the day they turn 60, use the appropriate part of this schedule however their Cap is prorated accordingly.

Case E (i): Turning 60 during the financial year - Reduced cap amount

On 1 July 2017 Chris was 59 years old receiving a capped defined benefit income stream. Chris turns 60 on 3 December 2017.

Chris's income stream paid to him prior to turning 60 will be taxed according to part A, the taxation consequences change when he turns 60 and therefore he will be subject to a different tax treatment.

Chris's reduced defined benefit income cap for the 2017/18 financial year is worked out as follows:

= $100,000 x (1 day turning 60 + number of days over 60/ Total number of days in financial year)

= $100,000 x (1+210)/365

= $100,000 x (211/365)

= $57,808.21

Chris's reduced defined benefit income cap is $57,809 (round up to nearest dollar)

Note: You will need to provide a PAYG payment summary - superannuation income stream for payments made to the payee before turning 60 and a separate payment summary for payments made to the payee after turning 60.

Case E (ii): Turning 60 during the financial year - Reduced cap amount and withholding calculation

On 1 July 2017 Loraine was 59 years old receiving a capped defined benefit income stream. Loraine turns 60 on 12 September 2017. Up until Loraine's' 60th birthday, withholding is calculated using the steps from part A. To calculate withholding on any payment made on or after Loraine's birthday, apply the steps outlined in this example.

Loraine receives a fortnightly income stream of $5,200 made up of the following:

■ a tax-free component of $400

■ a taxable component - taxed element of $4,800.

Loraine's income stream paid to her prior to turning 60 will be taxed according to part A. The character of this income changes when she turns 60 and therefore she will be subject to a different tax treatment.

Loraine's reduced defined benefit income cap for the 2017/18 financial year is worked out as follows:

= $100,000 x (1+291)/365)

= $100,000 x (292/365)

= $100,000 x 0.80

Loraine's reduced defined benefit income cap is $80,000.

The annual equivalent of Loraine's fortnightly super income stream ($135,200) is greater than the reduced defined benefit income cap of $80,000.

Step 1 Calculate the fortnightly equivalent of the amount in excess of $80,000.

$135,200 - $80,000 = $55,200

Loraine is paid fortnightly, therefore:

$55,200/ 26 = $2,123 (ignoring cents)

Step 2 Divide the amount calculated at step 1 by two.

$2,123/ 2 = $1,062 (rounded to the nearest dollar)

Step 3 Use the Fortnightly tax table to calculate the withholding amount relevant to the amount worked out in step 2.

As Loraine has claimed the tax-free threshold the withholding amount is $88.

Starting an income stream during the financial year

Where a payee starts a capped defined benefit income stream during the financial year, their Cap is prorated accordingly.

Case E (iii): Starting an income stream during the financial year

Sarah is 65 years old and she first starts her capped defined benefit income stream on the 1 January 2018.

Sarah's reduced defined benefit income cap for the 2017/18 financial year is worked out as follows:

= $100,000 x (1+182)/365

= $50,137

Sarah's reduced defined benefit income cap is $50,137.

To calculate withholding use this reduced cap when applying the applicable parts of this schedule.

Reversionary income where the payee is under 60 years old and the deceased was at least 60 years old

Where a payee is under 60 years old and receives reversionary income stream, and the deceased was at least 60 years old, their Cap is prorated accordingly.

If the payee is also receiving their own defined benefit income stream, withholding will need to be calculated using the applicable part of this schedule.

Case E (iv): Reversionary income where the payee is under 60 years old and the deceased was at least 60 years old

Freya, 57, receives a defined benefit income stream in her own right, and her income stream is taxed under part A of this schedule. Freya receives a PAYG payment summary - superannuation income stream with the amounts and applicable tax offset.

Freya's partner died on the 1st of January 2018; Freya's partner was aged 61 at the time of death and was in receipt of a defined benefit income stream with both tax-free components and taxable components. Freya is now entitled to a reversionary income stream.

As Freya's reversionary income stream was subject to concessional tax treatment, Freya's reversionary income stream is also subject to additional taxation arrangements.

As Freya's partner died on the 1st of January 2018 (182days) her defined benefit income cap is reduced from $100,000 to $50,137. This cap is then further reduced by the amount of defined benefit income she received from the date of death of her partner.

Freya is paid fortnightly and her own super income for the financial year is $70,000 which comprises of a:

■ taxable component - taxed element $60,000

■ taxable component - untaxed element $0

■ tax-free component - $10,000.

Calculate Freya's withholding from her own super income stream

Step 1 Add together Freya's Untaxed and Taxed elements, ignoring the tax-free component as she is aged less than 60. This amount is $60,000.

Work out fortnightly taxable payments $60,000/26 = $2,307.

Use the Fortnightly tax table to calculate withholding = $472.

Step 2 Determine the tax offset available for Freya.

15% of $60,000 = $9,000

As Freya is being paid on a fortnightly basis divide the offset by 26.

$9,000/26 = $346 (ignore cents).

Step 3 Determine withholding from Freya's own income stream.

Withholding calculated at step 1 - Tax offset calculated at step 2

$472 - $346 = $126

Calculate Freya's Defined Benefit Cap

Freya's defined benefit cap is reduced $100,000 x [(1+182)/365] = $50,137.

Freya's reduced cap is $50,137.

As Freya has defined benefit income in her own right it is further reduced by the amount of the taxed element and tax-free component that was paid to her from the date her partner died.

Reversionary Cap $50,137 - 183/365 x 70,000.

Freya's reduced Defined Benefit Cap is now $15,041.

Freya's Reversionary income stream comprises of a:

■ taxable component - taxed element $30,000

■ taxable component - untaxed element $10,000

■ tax-free component - $10,000

Freya's total reversionary income stream payment from 1 January 2018 is $50,000.

Reversionary income in excess of the reduced cap of $15,041 is $34,959.

Calculate Freya's withholding on her reversionary income stream

Step 1 Calculate the fortnightly tax-free component and taxed element in excess of the reduced cap.

$40,000 - $15,041 = $-24,959

Freya is paid fortnightly from 1 January 2018, therefore:

$24,959/ 13 = $1,919 (ignoring cents)

Step 2 Divide the amount calculated at step 1 by two.

$1,919/ 2 = $959 (ignoring cents)

Step 3 Add the untaxed element fortnightly payments.

$10,000/13 = $769

Step 4 Add the amounts calculated at step 2 and step 3

$959 + $769

= $1,728

Step 5 Use the Fortnightly tax table to calculate the withholding amount relevant to the amount worked out in step 4.

Freya recognises that she has multiple taxable income streams and therefore has not claimed the tax -free threshold on her reversionary income stream payment, as such the withholding amount on $1,728 is $514.

Step 6 As the reversionary income stream tax-free and taxed element components totalled more than Freya's reduced defined benefit income cap, she is not entitled to a tax offset.

PAYG payment summary reporting

Freya will receive two PAYG payment summaries - superannuation income stream:

(1) PAYG payment summary - superannuation income stream (personal income stream)

Applicable dates: 01/07/2017- 30/06/2018

Tax withheld $3,276

Taxable component - taxed element $60,000

Taxable component - untaxed element $0

Tax-free component - $10,000

Tax offset - $9,000

(2) PAYG payment summary - superannuation income stream (reversionary income stream)

Applicable dates: 01/01/2018 - 30/06/2018

Tax withheld $6,682

Taxable component - taxed element $30,000

Taxable component - untaxed element $10,000

Tax-free component - $10,000

As the source of this income stream was from an income stream that was subject to concessional tax treatment, no tax offset should be provided on the payment summary. The ATO will calculate any entitlement to a tax offset upon assessment.

Super death benefits

Dependants

Dependants include all children of the deceased under 18 years old, 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.

Non-dependants

A person who is not a dependant of the deceased is not able to receive a super income stream from the deceased. 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.

Reversionary income streams

A death benefit income stream can either be a reversionary or non-reversionary. A reversionary death benefit income stream is a superannuation income stream that reverts to the reversionary beneficiary automatically upon the member's death, if the death benefit payment is not a reversionary income stream then it is treated the same as if it was the member's income stream.

Defined benefit income cap

The defined benefit income cap is relevant where the payee is:

(a) 60 years or over, or

(b) under 60 years of age and a death benefits dependant, where the deceased died at 60 years of age or over.

The defined benefit income cap applies, if the payee receives one or more superannuation income stream benefits that are 'defined benefit income' to which 'concessional tax treatment' applies. The defined benefit income cap does not have taxation consequences outside of these circumstances.

The defined benefit income cap is an annual cap that is reset, and may be reduced, each year. From 1 July 2017, the ‘defined benefit income cap’ limits the amount of tax-free income the payee can receive from a capped defined benefit income stream (pension or annuity).

For the 2017–18 income year, the defined benefit income cap will be $100,000 (the $1.6 million general transfer balance cap divided by 16).

For further information refer to LCG 2017/1.

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

f. Date of birth	g. 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

Cap conversion table

The full year cap on defined benefit income streams is $100,000 as of 1 July 2017, and is subject to indexation. The cap can also be reduced - see part E.

The table below converts the $100,000 cap into the weekly, fortnightly or monthly equivalent.

Total income stream	Annual amount less than $100,000	Annual amount $100,000 or greater
Weekly equivalent	$1 to $1,923	$1,924 or greater
Fortnightly equivalent	$1 to $3,846	$3,847 or greater
Monthly equivalent	$1 to $8,333	$8,334 or greater

Payment summaries

You must issue a PAYG payment summary – superannuation income stream to the member for the total of the payments made in the financial year. This must be provided by 14 July. This date may be earlier if the payee requests it.

Payment summaries can also be printed using software that conforms to ATO reporting specifications.

During the year that a payee turns 60 you must issue two separate payment summaries - one for the period prior to the payee turning 60 and one for the period from the payee's 60th birthday.

A payment summary is required to be issued to a payee in receipt of a super income stream even if no tax was withheld.

See also:

Payment summary information and reporting specifications on our Software developers website

Schedule 15: Tax table for working holiday makers

For payments made on or after 1 July 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 section 12-35 of Schedule 1 to the TAA.

Using this table

This table applies to payments to individuals – including backpackers – who are working in Australia and holds at that time:

a. Working holiday makers visa (subclass 417), or

b. Work and holiday makers visa (subclass 462), or

c. Bridging visa permitting the individual to work in Australia if:
i. the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

ii. the Minister administering that Act is still to make a decision in relation to the application; and

iii. the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

For all other circumstances you should use the relevant PAYG withholding weekly, fortnightly or monthly tax table.

If you employ individuals under the Seasonal Worker Program, the tax table for working holiday makers does not apply.

Find out about:

■Working out the withholding amount

■Registered employer

■Unregistered employer

■Using a formula

■Table A: Working holiday makers income tax rates

■Rounding of withholding amounts

■Accounting software

■TFN declarations

■PAYG withholding publications

Working out the withholding amount

To work out the amount you need to withhold, you must:

■put the total payments you will make to your employee for the pay period into the Withholding look-up tool (XLS, 36KB)

■use the appropriate column to find the correct amount to withhold

- Column 2 if you are registered and total payments you have made to the employee for the income year prior to this payment are less than $37,001, and the employee has given you a tax file number (TFN)

- Column 3 if you are registered and total payments you have made to the employee for the income year prior to this payment are from $37,001 to $87,000, and the employee has given you a TFN

- Column 4 if you are registered and total payments you have made to the employee for the income year prior to this payment are from $87,001 to $180,000, and the employee has given you a TFN

- Column 5 if you are registered and total payments you have made to the employee for the income year prior to this payment are more than $180,000, and the employee has given you a TFN

- Column 6 if you are registered and the employee has not given you a TFN.

Example 1: Using the Withholding look-up tool

A foreign resident employee is working in Australia under a working holiday makers visa (subclass 417) and has earnings for the week of $680.70. The employee has provided their TFN on a Tax file number declaration, and the total payments you have made to this employee do not exceed $37,000 for the 2017–18 income year.

To work out the correct amount to withhold, put $680 into the Withholding look-up tool (XLS, 36KB) (ignore cents).

The tool will automatically calculate the withholding result of $102 (Column 2, registered employer and employee has given you a TFN).

Registered employer

You need to register with us before you employ a working holiday maker. If you are registered, you will be able to withhold at a flat rate of 15% up to $37,000 in total payments made to each individual working holiday maker within an income year. Where total payments exceed $37,000, see Table A below for the applicable withholding rate.

Next steps:

■WHM registration tool

Unregistered employer

If you have not registered with us to withhold at working holiday maker tax rates, you are required to withhold at foreign resident rates as specified in the tax tables for weekly, fortnightly or monthly payments.

Using a formula

If you have developed your own payroll software package, you can use the formulas and coefficients outlined below to calculate the withholding amount.

The formulas comprise linear equations of the form y = ax, where:

■y is the amount to be withheld expressed in dollars

■x is total payment made to the employee for the pay period, ignoring any cents

■a is the value of the coefficient as shown in Table A.

Table A: Working holiday makers income tax rates

The following tax rates for 2017–18 apply for working holiday makers holding a subclass 417 or 462 visa from 1 July 2017.

Table A: Working holiday makers income tax rates for 2017–18

Taxable income	Tax rate	Value (a)
$0–$37,000	15% on each $1 up to $37,000	0.15
$37,001–$87,000	32.5% on each $1 over $37,000 to $87,000	0.325
$87,001–$180,000	37% on each $1 over $87,000 to $180,000	0.37
$180,001 and over	45% on each $1 over $180,000	0.45

If no TFN is provided you must withhold at 45% on total payments made. If using formulas, the value of 'a' is 0.45.

Example 2: Using the formula

A foreign resident employee is working in Australia under a work and holiday makers visa (subclass 462) and has earnings for the month of $2,825.75.

The employee has provided their TFN on a Tax file number declaration, and total payments you have made to this employee for the income year do not exceed $37,000.

x = 2,825 (ignoring cents)

Withholding amount (y)

= (a x x)

= 0.15 x 2825

= 423.75 or $424.00 (rounded to nearest dollar)

Example 3: When payments exceed $37,000

A foreign resident employee is working in Australia under a working holiday makers visa (subclass 417) and has earnings for the month of May 2018 of $3,570.20.

The employee has provided their TFN on a Tax file number declaration and the total payments you have made to this employee from January 2018 to April 2018, in the 2017–18 income year, is $38,500. Last month's payment resulted in total payments exceeding $37,000. Therefore, from the next pay you must withhold at the foreign resident tax rates specified in Table A.

Withholding is calculated at 32.5c for every dollar of earnings over $37,000 (to $87,000)

Current pay = $3,570.20

The value of 'a' in the formula is 0.325.

Withholding = 0.325 x 3570

= 1,160.25 or $1,160.00 (rounded to the nearest dollar)

Rounding of withholding amounts

The withholding amounts calculated as a result of applying the above rates and formula are rounded to the nearest dollar. Values ending in 50 cents and higher are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

Where withholding is calculated on the top marginal rate of tax or when no TFN is provided, ignore cents in the withholding result.

Accounting software

Software written in accordance with the formulas in this tax table should be tested for accuracy against the Withholding look-up tool (XLS, 36KB). 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.

TFN declarations

Your employee may indicate that they are a working holiday maker in their TFN declaration.

Even if they don't, you will need to withhold amounts using the rates shown in Table A (provided they have given you a valid TFN).

This applies to:

a. Working holiday makers visa (subclass 417), or

b. Work and holiday makers visa (subclass 462), or

c. Bridging visa permitting the individual to work in Australia if:
i. the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

ii. the Minister administering that Act is still to make a decision in relation to the application; and

iii. the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

To confirm the visa status of a working holiday maker, go to the Department of Immigration and Border Protection's Visa Entitlement Verification Online (VEVO) webpage. This is where you can check visa details and conditions.

Working holiday makers cannot claim tax offsets. If they have claimed a tax offset on the Tax file number declaration, do not adjust the amount you withhold.

If a TFN has not been provided

You must withhold 45% from payments to a working holiday maker (ignoring cents), if:

■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 that 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 employee has not given you their TFN within 28 days, you must withhold 45% from any payment you make unless we tell you not to.

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Citations

Taxation Administration Act Withholding Schedules 2017 (Cth)

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Schedule number	Quick code number	Title
1	52068	Schedule 1 – Statement of formulas for calculating amounts to be withheld
2	52069	Schedule 2 - Tax table for individuals employed in the horticultural or shearing industry
3	52070	Schedule 3 – Tax table for actors, variety artists and other entertainers
4	52071	Schedule 4 – Tax table for return to work payments
5	52072	Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments
6	52073	Schedule 6 – Tax table for annuities
7	52074	Schedule 7 – Tax table for unused leave payments on termination of employment
8	52075	Schedule 8 – Statement of formulas for calculating HELP, SSL, TSL and SFSS components
9	52076	Schedule 9 – Tax table for seniors and pensioners
11	52077	Schedule 11 – Tax table for employment termination payments
12	52078	Schedule 12 – Tax table for superannuation lump sums
13	52079	Schedule 13 – Tax table for superannuation income streams
15	52080	Schedule 15: Tax table for working holiday makers