Taxation Administration Act Withholding Schedules 2018 (Cth)

Legislative Instrument

TAXATION ADMINISTRATION ACT

WITHHOLDING SCHEDULES 2018

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

Deborah Jenkins

Deputy Commissioner of Taxation

29 June 2018

1.Name of instrument

This determination is the Taxation Administration Act Withholding Schedules 2018.

2.Commencement

This instrument commences on 1 July 2018.

3.Repealing of existing instruments

This instrument repeals legislative instrument Taxation Administration Act Withholding Schedules 2017 – F2017L00598, registered on 25 May 2017.

4.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.

5.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	55460	Schedule 1 – Statement of formulas for calculating amounts to be withheld
3	55455	Schedule 3 – Tax table for actors, variety artists and other entertainers
4	55461	Schedule 4 – Tax table for return to work payments
5	55463	Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments
7	55464	Schedule 7 – Tax table for unused leave payments on termination of employment
8	55465	Schedule 8 – Statement of formulas for calculating HELP, SSL, TSL and SFSS components
9	55456	Schedule 9 – Tax table for seniors and pensioners
11	55466	Schedule 11 – Tax table for employment termination payments
12	55468	Schedule 12 – Tax table for superannuation lump sums
13	55469	Schedule 13 – Tax table for superannuation income streams
15	55457	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 2018

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:

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).

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

See also:

■You can download a printable version of Statement of formulas for calculating amounts to be withheld (PDF, 579KB) (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
72	0.1900	0.1900
361	0.2342	3.2130
932	0.3477	44.2476
1,380	0.3450	41.7311
3,111	0.3900	103.8657
3,111  & over	0.4700	352.7888

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

Weekly earnings  (x) less than  $	a	b
355	-	-
422	0.1900	67.4635
528	0.2900	109.7327
711	0.2100	67.4635
1,282	0.3477	165.4423
1,730	0.3450	161.9808
3,461	0.3900	239.8654
3,461  & over	0.4700	516.7885

Foreign residents –Scale 3

Weekly earnings  (x) less than  $	a	b
1,730	0.3250	0.3250
3,461	0.3700	77.8846
3,461 & over	0.4500	354.8077

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
1,730	0.3250	161.9808
3,461	0.3700	239.8654
3,461 & over	0.4500	516.7885

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	-	-
711	0.1900	67.4635
713	0.3277	165.4423
891	0.3777	201.1048
1,282	0.3377	165.4425
1,730	0.3350	161.9810
3,461	0.3800	239.8656
3,461 & over	0.4600	516.7887

Notes

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

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

3.    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.

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

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

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

7.    For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $21,980 ($422 per week) or less. Where the taxable income exceeds $21,980 but is less than $27,475 ($528 per week), the levy is shaded in at the rate of 10% of the excess over $21,980. Where a person’s taxable income is $27,475 ($528 per week) or more, Medicare is levied at the rate of 2% of total taxable income.

8.    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

1.     Parameter	2.     Scale 2	3.     Scale 6
Weekly earnings threshold	422	713
Weekly earnings shade-in threshold	528	891
Medicare levy family threshold	37,089	37,089
Weekly family threshold divisor	52	52
Additional child	3,406	3,406
Shading out point multiplier	0.1000	0.0500
Shading out point divisor	0.0800	0.0400
Weekly levy adjustment factor	422.6900	713.2500
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 1,699	3
1,700 to 3,499	4
3,500 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 3,399	12
3,400 to 6,899	17
6,900 and over	37

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:

■$422 or more where scale 2 is applied

■$713 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:

■$528 or more where scale 2 is applied

■$891 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 = $713.25 (37,089 ÷ 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 3,406 and add the result to 37,089

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 = ([3,406 × 2] + 37,089) ÷ 52

WFT = 844.2500 or $844.25 (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 = ([3,406 × 6] + 37,089) ÷ 52

WFT = 1,106.2500 or $1,106.25 (rounded to the nearest cent)

SOP = (WFT × 0.1) ÷ 0.0800

SOP = ($1,106.25 × 0.1) ÷ 0.0800

SOP = 1,382.8125 or $1,382 (ignoring cents)

Weekly Levy Adjustment (WLA)

Where scale 2 is applied

Where weekly earnings are $422 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:

1.If x is less than $528, WLA = (x − 422.69) × 0.1

2.If x is $528 or more but less than WFT, WLA = x × 0.0200

3.If x is equal to or greater than WFT and less than the SOP, WLA =
 (WFT × 0.0200) − ([x − WFT] × 0.0800)

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 $528, WLA is calculated using formula (1):

WLA = (465.99 − 422.69) × 0.1
 = 4.3300 or $4.00 (rounded to the nearest dollar).

Example 2

Employee's weekly earnings are $892.47 and the number of children claimed at question 12 is three. Scale 6 is applied.

x = 892.99
 WFT = ([3,406 × 3] + 37,089) ÷ 52
 = 909.7500 or $909.75 (rounded to the nearest cent)

As x is greater than $891 and less than WFT, WLA is calculated using formula (2):

WLA = 892.99 × 0.01
 = 8.9299 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 = ([3,406 × 4] + 37,089) ÷ 52
 = 975.2500 or $975.25 (rounded to the nearest cent).

SOP = (975.25 × 0.1) ÷ 0.08
 = 1,219.0625 or $1,219 (ignoring cents).

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

WLA = (975.25 × 0.020) − ([982.99 − 975.25] × 0.0800)
 = 18.8858 or $19.00 (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 = ([3,406 × 1] + 37,089) ÷ 52

= 778.7500 or $778.75 (rounded to the nearest cent).

SOP = (778.75 × 0.1) ÷ 0.08

= 973.4375 or $973 (ignoring cents).

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

WLA = (778.75 × 0.020) − ([797.99 − 778.75] × 0.0800)

= 14.0358 or $14.00 (rounded to the nearest dollar).

The fortnightly levy adjustment is therefore $28.00 ($14.00 × 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 = $713.25

As x is greater than $528 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) − 165.4423

= 218.4150 or $218.00 (rounded to nearest dollar)

Levy adjustment: weekly earnings are greater than WFT ($1,040.75) and less than the SOP ($1,300) appropriate to employee with five children. Formula (3) applies.

= (1,040.75 × 0.0200) – ([1,103.99 − 1,040.75] × 0.0800)

= 20.8150 − 5.0592

= 15.7558 or $16.00 (rounded to nearest dollar)

Net weekly withholding amount

$218.00 − $16.00 = $202.00

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 $4,316.33. 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 $973 appropriate to an employee with one child.

Therefore, scale 2 is applied.

Convert to weekly equivalent

= ($4,316.33 + 0.01) × 3 ÷ 13

= 996.0785 or $996 (ignore cents)

x = 996.99

Weekly withholding amount (y)

= (a × x) − b

= (0.3477 × 996.99) − 165.4423

= 181.2111 or $181.00 (rounded to nearest dollar)

Monthly withholding amount

$181.00 × 13 ÷ 3 = $784.00 (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

$784.00 − $113.00 = $671.00

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:

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

2.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.

3.Round the result to the nearest dollar.

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

5.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  $
71	13.00	0.00	23.00	0.00	0.00
72	14.00	0.00	23.00	0.00	0.00
116	24.00	0.00	38.00	0.00	0.00
117	24.00	0.00	38.00	0.00	0.00
249	55.00	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
421	102.00	13.00	137.00	13.00	13.00
422	103.00	13.00	137.00	13.00	13.00
527	139.00	43.00	171.00	33.00	33.00
528	140.00	44.00	172.00	33.00	33.00
710	203.00	82.00	231.00	68.00	68.00
711	203.00	82.00	231.00	68.00	68.00
712	204.00	82.00	231.00	68.00	68.00
713	204.00	83.00	232.00	69.00	69.00
890	266.00	144.00	289.00	127.00	135.00
891	266.00	145.00	290.00	127.00	136.00
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
1379	434.00	314.00	448.00	287.00	300.00
1380	435.00	314.00	448.00	287.00	301.00
1729	571.00	435.00	562.00	400.00	418.00
1730	571.00	435.00	563.00	401.00	418.00
1844	616.00	480.00	605.00	443.00	461.00
1845	616.00	480.00	605.00	443.00	462.00
2119	723.00	587.00	707.00	545.00	566.00
2120	723.00	587.00	707.00	545.00	566.00
2490	868.00	732.00	844.00	682.00	707.00
2491	868.00	732.00	844.00	682.00	707.00
2652	931.00	795.00	904.00	742.00	768.00
2653	931.00	795.00	904.00	742.00	769.00
2736	964.00	828.00	935.00	773.00	800.00
2737	964.00	828.00	935.00	773.00	801.00
2898	1027.00	891.00	995.00	833.00	862.00
2899	1027.00	891.00	995.00	833.00	862.00
2913	1033.00	897.00	1000.00	838.00	867.00
2914	1033.00	897.00	1001.00	839.00	868.00
3110	1109.00	973.00	1073.00	911.00	942.00
3111	1110.00	974.00	1074.00	912.00	943.00
3460	1274.00	1110.00	1203.00	1041.00	1075.00
3461	1274.00	1110.00	1203.00	1041.00	1076.00

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  $
142	26.00	0.00	46.00	0.00	0.00
144	28.00	0.00	46.00	0.00	0.00
232	48.00	0.00	76.00	0.00	0.00
234	48.00	0.00	76.00	0.00	0.00
498	110.00	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
842	204.00	26.00	274.00	26.00	26.00
844	206.00	26.00	274.00	26.00	26.00
1054	278.00	86.00	342.00	66.00	66.00
1056	280.00	88.00	344.00	66.00	66.00
1420	406.00	164.00	462.00	136.00	136.00
1422	406.00	164.00	462.00	136.00	136.00
1424	408.00	164.00	462.00	136.00	136.00
1426	408.00	166.00	464.00	138.00	138.00
1780	532.00	288.00	578.00	254.00	270.00
1782	532.00	290.00	580.00	254.00	272.00
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
2758	868.00	628.00	896.00	574.00	600.00
2760	870.00	628.00	896.00	574.00	602.00
3458	1142.00	870.00	1124.00	800.00	836.00
3460	1142.00	870.00	1126.00	802.00	836.00
3688	1232.00	960.00	1210.00	886.00	922.00
3690	1232.00	960.00	1210.00	886.00	924.00
4238	1446.00	1174.00	1414.00	1090.00	1132.00
4240	1446.00	1174.00	1414.00	1090.00	1132.00
4980	1736.00	1464.00	1688.00	1364.00	1414.00
4982	1736.00	1464.00	1688.00	1364.00	1414.00
5304	1862.00	1590.00	1808.00	1484.00	1536.00
5306	1862.00	1590.00	1808.00	1484.00	1538.00
5472	1928.00	1656.00	1870.00	1546.00	1600.00
5474	1928.00	1656.00	1870.00	1546.00	1602.00
5796	2054.00	1782.00	1990.00	1666.00	1724.00
5798	2054.00	1782.00	1990.00	1666.00	1724.00
5826	2066.00	1794.00	2000.00	1676.00	1734.00
5828	2066.00	1794.00	2002.00	1678.00	1736.00
6220	2218.00	1946.00	2146.00	1822.00	1884.00
6222	2220.00	1948.00	2148.00	1824.00	1886.00
6920	2548.00	2220.00	2406.00	2082.00	2150.00
6922	2548.00	2220.00	2406.00	2082.00	2152.00

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  $
307.67	56.00	0.00	100.00	0.00	0.00
312.00	61.00	0.00	100.00	0.00	0.00
502.67	104.00	0.00	165.00	0.00	0.00
507.00	104.00	0.00	165.00	0.00	0.00
1079.00	238.00	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
1824.33	442.00	56.00	594.00	56.00	56.00
1828.67	446.00	56.00	594.00	56.00	56.00
2283.67	602.00	186.00	741.00	143.00	143.00
2288.00	607.00	191.00	745.00	143.00	143.00
3076.67	880.00	355.00	1001.00	295.00	295.00
3081.00	880.00	355.00	1001.00	295.00	295.00
3085.33	884.00	355.00	1001.00	295.00	295.00
3089.67	884.00	360.00	1005.00	299.00	299.00
3856.67	1153.00	624.00	1252.00	550.00	585.00
3861.00	1153.00	628.00	1257.00	550.00	589.00
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
5975.67	1881.00	1361.00	1941.00	1244.00	1300.00
5980.00	1885.00	1361.00	1941.00	1244.00	1304.00
7492.33	2474.00	1885.00	2435.00	1733.00	1811.00
7496.67	2474.00	1885.00	2440.00	1738.00	1811.00
7990.67	2669.00	2080.00	2622.00	1920.00	1998.00
7995.00	2669.00	2080.00	2622.00	1920.00	2002.00
9182.33	3133.00	2544.00	3064.00	2362.00	2453.00
9186.67	3133.00	2544.00	3064.00	2362.00	2453.00
10790.00	3761.00	3172.00	3657.00	2955.00	3064.00
10794.33	3761.00	3172.00	3657.00	2955.00	3064.00
11492.00	4034.00	3445.00	3917.00	3215.00	3328.00
11496.33	4034.00	3445.00	3917.00	3215.00	3332.00
11856.00	4177.00	3588.00	4052.00	3350.00	3467.00
11860.33	4177.00	3588.00	4052.00	3350.00	3471.00
12558.00	4450.00	3861.00	4312.00	3610.00	3735.00
12562.33	4450.00	3861.00	4312.00	3610.00	3735.00
12623.00	4476.00	3887.00	4333.00	3631.00	3757.00
12627.33	4476.00	3887.00	4338.00	3636.00	3761.00
13476.67	4806.00	4216.00	4650.00	3948.00	4082.00
13481.00	4810.00	4221.00	4654.00	3952.00	4086.00
14993.33	5521.00	4810.00	5213.00	4511.00	4658.00
14997.67	5521.00	4810.00	5213.00	4511.00	4663.00

Sample data – Scale 2

Weekly Medicare levy adjustment

Adjustment amount

Weekly earnings  $	Spouse only  $	1  child  $	2  children  $	3  children  $	4  children  $	5  children  $
421	0.00	0.00	0.00	0.00	0.00	0.00
422	0.00	0.00	0.00	0.00	0.00	0.00
474	5.00	5.00	5.00	5.00	5.00	5.00
475	5.00	5.00	5.00	5.00	5.00	5.00
527	11.00	11.00	11.00	11.00	11.00	11.00
528	11.00	11.00	11.00	11.00	11.00	11.00
554	11.00	11.00	11.00	11.00	11.00	11.00
555	11.00	11.00	11.00	11.00	11.00	11.00
581	12.00	12.00	12.00	12.00	12.00	12.00
582	12.00	12.00	12.00	12.00	12.00	12.00
608	12.00	12.00	12.00	12.00	12.00	12.00
609	12.00	12.00	12.00	12.00	12.00	12.00
635	13.00	13.00	13.00	13.00	13.00	13.00
636	13.00	13.00	13.00	13.00	13.00	13.00
662	13.00	13.00	13.00	13.00	13.00	13.00
663	13.00	13.00	13.00	13.00	13.00	13.00
689	14.00	14.00	14.00	14.00	14.00	14.00
690	14.00	14.00	14.00	14.00	14.00	14.00
716	14.00	14.00	14.00	14.00	14.00	14.00
717	14.00	14.00	14.00	14.00	14.00	14.00
743	12.00	15.00	15.00	15.00	15.00	15.00
744	12.00	15.00	15.00	15.00	15.00	15.00
770	10.00	15.00	15.00	15.00	15.00	15.00
771	10.00	15.00	15.00	15.00	15.00	15.00
797	7.00	14.00	16.00	16.00	16.00	16.00
798	7.00	14.00	16.00	16.00	16.00	16.00
824	5.00	12.00	16.00	16.00	16.00	16.00
825	5.00	12.00	17.00	17.00	17.00	17.00
851	3.00	10.00	16.00	17.00	17.00	17.00
852	3.00	10.00	16.00	17.00	17.00	17.00
878	1.00	8.00	14.00	18.00	18.00	18.00
879	1.00	7.00	14.00	18.00	18.00	18.00
905	0.00	5.00	12.00	18.00	18.00	18.00
906	0.00	5.00	12.00	18.00	18.00	18.00
932	0.00	3.00	10.00	16.00	19.00	19.00
933	0.00	3.00	10.00	16.00	19.00	19.00
959	0.00	1.00	8.00	14.00	19.00	19.00
960	0.00	1.00	8.00	14.00	19.00	19.00
986	0.00	0.00	5.00	12.00	19.00	20.00
987	0.00	0.00	5.00	12.00	18.00	20.00
1013	0.00	0.00	3.00	10.00	16.00	20.00
1014	0.00	0.00	3.00	10.00	16.00	20.00
1040	0.00	0.00	1.00	8.00	14.00	21.00
1041	0.00	0.00	1.00	8.00	14.00	21.00
1218	0.00	0.00	0.00	0.00	0.00	7.00
1219	0.00	0.00	0.00	0.00	0.00	6.00
1299	0.00	0.00	0.00	0.00	0.00	0.00
1300	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  $
842	0.00	0.00	0.00	0.00	0.00	0.00
844	0.00	0.00	0.00	0.00	0.00	0.00
948	10.00	10.00	10.00	10.00	10.00	10.00
950	10.00	10.00	10.00	10.00	10.00	10.00
1054	22.00	22.00	22.00	22.00	22.00	22.00
1056	22.00	22.00	22.00	22.00	22.00	22.00
1108	22.00	22.00	22.00	22.00	22.00	22.00
1110	22.00	22.00	22.00	22.00	22.00	22.00
1162	24.00	24.00	24.00	24.00	24.00	24.00
1164	24.00	24.00	24.00	24.00	24.00	24.00
1216	24.00	24.00	24.00	24.00	24.00	24.00
1218	24.00	24.00	24.00	24.00	24.00	24.00
1270	26.00	26.00	26.00	26.00	26.00	26.00
1272	26.00	26.00	26.00	26.00	26.00	26.00
1324	26.00	26.00	26.00	26.00	26.00	26.00
1326	26.00	26.00	26.00	26.00	26.00	26.00
1378	28.00	28.00	28.00	28.00	28.00	28.00
1380	28.00	28.00	28.00	28.00	28.00	28.00
1432	28.00	28.00	28.00	28.00	28.00	28.00
1434	28.00	28.00	28.00	28.00	28.00	28.00
1486	24.00	30.00	30.00	30.00	30.00	30.00
1488	24.00	30.00	30.00	30.00	30.00	30.00
1540	20.00	30.00	30.00	30.00	30.00	30.00
1542	20.00	30.00	30.00	30.00	30.00	30.00
1594	14.00	28.00	32.00	32.00	32.00	32.00
1596	14.00	28.00	32.00	32.00	32.00	32.00
1648	10.00	24.00	32.00	32.00	32.00	32.00
1650	10.00	24.00	34.00	34.00	34.00	34.00
1702	6.00	20.00	32.00	34.00	34.00	34.00
1704	6.00	20.00	32.00	34.00	34.00	34.00
1756	2.00	16.00	28.00	36.00	36.00	36.00
1758	2.00	14.00	28.00	36.00	36.00	36.00
1810	0.00	10.00	24.00	36.00	36.00	36.00
1812	0.00	10.00	24.00	36.00	36.00	36.00
1864	0.00	6.00	20.00	32.00	38.00	38.00
1866	0.00	6.00	20.00	32.00	38.00	38.00
1918	0.00	2.00	16.00	28.00	38.00	38.00
1920	0.00	2.00	16.00	28.00	38.00	38.00
1972	0.00	0.00	10.00	24.00	38.00	40.00
1974	0.00	0.00	10.00	24.00	36.00	40.00
2026	0.00	0.00	6.00	20.00	32.00	40.00
2028	0.00	0.00	6.00	20.00	32.00	40.00
2080	0.00	0.00	2.00	16.00	28.00	42.00
2082	0.00	0.00	2.00	16.00	28.00	42.00
2436	0.00	0.00	0.00	0.00	0.00	14.00
2438	0.00	0.00	0.00	0.00	0.00	12.00
2598	0.00	0.00	0.00	0.00	0.00	0.00
2600	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  $
1824.33	0.00	0.00	0.00	0.00	0.00	0.00
1828.67	0.00	0.00	0.00	0.00	0.00	0.00
2054.00	22.00	22.00	22.00	22.00	22.00	22.00
2058.33	22.00	22.00	22.00	22.00	22.00	22.00
2283.67	48.00	48.00	48.00	48.00	48.00	48.00
2288.00	48.00	48.00	48.00	48.00	48.00	48.00
2400.67	48.00	48.00	48.00	48.00	48.00	48.00
2405.00	48.00	48.00	48.00	48.00	48.00	48.00
2517.67	52.00	52.00	52.00	52.00	52.00	52.00
2522.00	52.00	52.00	52.00	52.00	52.00	52.00
2634.67	52.00	52.00	52.00	52.00	52.00	52.00
2639.00	52.00	52.00	52.00	52.00	52.00	52.00
2751.67	56.00	56.00	56.00	56.00	56.00	56.00
2756.00	56.00	56.00	56.00	56.00	56.00	56.00
2868.67	56.00	56.00	56.00	56.00	56.00	56.00
2873.00	56.00	56.00	56.00	56.00	56.00	56.00
2985.67	61.00	61.00	61.00	61.00	61.00	61.00
2990.00	61.00	61.00	61.00	61.00	61.00	61.00
3102.67	61.00	61.00	61.00	61.00	61.00	61.00
3107.00	61.00	61.00	61.00	61.00	61.00	61.00
3219.67	52.00	65.00	65.00	65.00	65.00	65.00
3224.00	52.00	65.00	65.00	65.00	65.00	65.00
3336.67	43.00	65.00	65.00	65.00	65.00	65.00
3341.00	43.00	65.00	65.00	65.00	65.00	65.00
3453.67	30.00	61.00	69.00	69.00	69.00	69.00
3458.00	30.00	61.00	69.00	69.00	69.00	69.00
3570.67	22.00	52.00	69.00	69.00	69.00	69.00
3575.00	22.00	52.00	74.00	74.00	74.00	74.00
3687.67	13.00	43.00	69.00	74.00	74.00	74.00
3692.00	13.00	43.00	69.00	74.00	74.00	74.00
3804.67	4.00	35.00	61.00	78.00	78.00	78.00
3809.00	4.00	30.00	61.00	78.00	78.00	78.00
3921.67	0.00	22.00	52.00	78.00	78.00	78.00
3926.00	0.00	22.00	52.00	78.00	78.00	78.00
4038.67	0.00	13.00	43.00	69.00	82.00	82.00
4043.00	0.00	13.00	43.00	69.00	82.00	82.00
4155.67	0.00	4.00	35.00	61.00	82.00	82.00
4160.00	0.00	4.00	35.00	61.00	82.00	82.00
4272.67	0.00	0.00	22.00	52.00	82.00	87.00
4277.00	0.00	0.00	22.00	52.00	78.00	87.00
4389.67	0.00	0.00	13.00	43.00	69.00	87.00
4394.00	0.00	0.00	13.00	43.00	69.00	87.00
4506.67	0.00	0.00	4.00	35.00	61.00	91.00
4511.00	0.00	0.00	4.00	35.00	61.00	91.00
5278.00	0.00	0.00	0.00	0.00	0.00	30.00
5282.33	0.00	0.00	0.00	0.00	0.00	26.00
5629.00	0.00	0.00	0.00	0.00	0.00	0.00
5633.33	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  $
712	0.00	0.00	0.00	0.00	0.00
713	0.00	0.00	0.00	0.00	0.00
801	4.00	4.00	4.00	4.00	4.00
802	4.00	4.00	4.00	4.00	4.00
890	9.00	9.00	9.00	9.00	9.00
891	3.00	7.00	9.00	9.00	9.00
906	3.00	6.00	9.00	9.00	9.00
907	3.00	6.00	9.00	9.00	9.00
922	2.00	5.00	9.00	9.00	9.00
923	2.00	5.00	9.00	9.00	9.00
938	1.00	5.00	8.00	9.00	9.00
939	1.00	5.00	8.00	9.00	9.00
954	1.00	4.00	7.00	10.00	10.00
955	1.00	4.00	7.00	10.00	10.00
970	0.00	3.00	7.00	10.00	10.00
971	0.00	3.00	7.00	10.00	10.00
986	0.00	3.00	6.00	9.00	10.00
987	0.00	3.00	6.00	9.00	10.00
1002	0.00	2.00	5.00	9.00	10.00
1003	0.00	2.00	5.00	9.00	10.00
1018	0.00	1.00	5.00	8.00	10.00
1019	0.00	1.00	5.00	8.00	10.00
1034	0.00	1.00	4.00	7.00	10.00
1035	0.00	1.00	4.00	7.00	10.00
1050	0.00	0.00	3.00	7.00	10.00
1051	0.00	0.00	3.00	7.00	10.00
1066	0.00	0.00	3.00	6.00	9.00
1067	0.00	0.00	3.00	6.00	9.00
1082	0.00	0.00	2.00	5.00	9.00
1083	0.00	0.00	2.00	5.00	9.00
1098	0.00	0.00	2.00	5.00	8.00
1099	0.00	0.00	1.00	5.00	8.00
1114	0.00	0.00	1.00	4.00	7.00
1115	0.00	0.00	1.00	4.00	7.00
1130	0.00	0.00	0.00	4.00	7.00
1131	0.00	0.00	0.00	3.00	7.00
1146	0.00	0.00	0.00	3.00	6.00
1147	0.00	0.00	0.00	3.00	6.00
1162	0.00	0.00	0.00	2.00	6.00
1163	0.00	0.00	0.00	2.00	5.00
1178	0.00	0.00	0.00	2.00	5.00
1179	0.00	0.00	0.00	2.00	5.00
1194	0.00	0.00	0.00	1.00	4.00
1195	0.00	0.00	0.00	1.00	4.00
1218	0.00	0.00	0.00	0.00	3.00
1219	0.00	0.00	0.00	0.00	3.00
1299	0.00	0.00	0.00	0.00	0.00
1300	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  $
1424	0.00	0.00	0.00	0.00	0.00
1426	0.00	0.00	0.00	0.00	0.00
1602	8.00	8.00	8.00	8.00	8.00
1604	8.00	8.00	8.00	8.00	8.00
1780	18.00	18.00	18.00	18.00	18.00
1782	6.00	14.00	18.00	18.00	18.00
1812	6.00	12.00	18.00	18.00	18.00
1814	6.00	12.00	18.00	18.00	18.00
1844	4.00	10.00	18.00	18.00	18.00
1846	4.00	10.00	18.00	18.00	18.00
1876	2.00	10.00	16.00	18.00	18.00
1878	2.00	10.00	16.00	18.00	18.00
1908	2.00	8.00	14.00	20.00	20.00
1910	2.00	8.00	14.00	20.00	20.00
1940	0.00	6.00	14.00	20.00	20.00
1942	0.00	6.00	14.00	20.00	20.00
1972	0.00	6.00	12.00	18.00	20.00
1974	0.00	6.00	12.00	18.00	20.00
2004	0.00	4.00	10.00	18.00	20.00
2006	0.00	4.00	10.00	18.00	20.00
2036	0.00	2.00	10.00	16.00	20.00
2038	0.00	2.00	10.00	16.00	20.00
2068	0.00	2.00	8.00	14.00	20.00
2070	0.00	2.00	8.00	14.00	20.00
2100	0.00	0.00	6.00	14.00	20.00
2102	0.00	0.00	6.00	14.00	20.00
2132	0.00	0.00	6.00	12.00	18.00
2134	0.00	0.00	6.00	12.00	18.00
2164	0.00	0.00	4.00	10.00	18.00
2166	0.00	0.00	4.00	10.00	18.00
2196	0.00	0.00	4.00	10.00	16.00
2198	0.00	0.00	2.00	10.00	16.00
2228	0.00	0.00	2.00	8.00	14.00
2230	0.00	0.00	2.00	8.00	14.00
2260	0.00	0.00	0.00	8.00	14.00
2262	0.00	0.00	0.00	6.00	14.00
2292	0.00	0.00	0.00	6.00	12.00
2294	0.00	0.00	0.00	6.00	12.00
2324	0.00	0.00	0.00	4.00	12.00
2326	0.00	0.00	0.00	4.00	10.00
2356	0.00	0.00	0.00	4.00	10.00
2358	0.00	0.00	0.00	4.00	10.00
2388	0.00	0.00	0.00	2.00	8.00
2390	0.00	0.00	0.00	2.00	8.00
2436	0.00	0.00	0.00	0.00	6.00
2438	0.00	0.00	0.00	0.00	6.00
2598	0.00	0.00	0.00	0.00	0.00
2600	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  $
3085.33	0.00	0.00	0.00	0.00	0.00
3089.67	0.00	0.00	0.00	0.00	0.00
3471.00	17.00	17.00	17.00	17.00	17.00
3475.33	17.00	17.00	17.00	17.00	17.00
3856.67	39.00	39.00	39.00	39.00	39.00
3861.00	13.00	30.00	39.00	39.00	39.00
3926.00	13.00	26.00	39.00	39.00	39.00
3930.33	13.00	26.00	39.00	39.00	39.00
3995.33	9.00	22.00	39.00	39.00	39.00
3999.67	9.00	22.00	39.00	39.00	39.00
4064.67	4.00	22.00	35.00	39.00	39.00
4069.00	4.00	22.00	35.00	39.00	39.00
4134.00	4.00	17.00	30.00	43.00	43.00
4138.33	4.00	17.00	30.00	43.00	43.00
4203.33	0.00	13.00	30.00	43.00	43.00
4207.67	0.00	13.00	30.00	43.00	43.00
4272.67	0.00	13.00	26.00	39.00	43.00
4277.00	0.00	13.00	26.00	39.00	43.00
4342.00	0.00	9.00	22.00	39.00	43.00
4346.33	0.00	9.00	22.00	39.00	43.00
4411.33	0.00	4.00	22.00	35.00	43.00
4415.67	0.00	4.00	22.00	35.00	43.00
4480.67	0.00	4.00	17.00	30.00	43.00
4485.00	0.00	4.00	17.00	30.00	43.00
4550.00	0.00	0.00	13.00	30.00	43.00
4554.33	0.00	0.00	13.00	30.00	43.00
4619.33	0.00	0.00	13.00	26.00	39.00
4623.67	0.00	0.00	13.00	26.00	39.00
4688.67	0.00	0.00	9.00	22.00	39.00
4693.00	0.00	0.00	9.00	22.00	39.00
4758.00	0.00	0.00	9.00	22.00	35.00
4762.33	0.00	0.00	4.00	22.00	35.00
4827.33	0.00	0.00	4.00	17.00	30.00
4831.67	0.00	0.00	4.00	17.00	30.00
4896.67	0.00	0.00	0.00	17.00	30.00
4901.00	0.00	0.00	0.00	13.00	30.00
4966.00	0.00	0.00	0.00	13.00	26.00
4970.33	0.00	0.00	0.00	13.00	26.00
5035.33	0.00	0.00	0.00	9.00	26.00
5039.67	0.00	0.00	0.00	9.00	22.00
5104.67	0.00	0.00	0.00	9.00	22.00
5109.00	0.00	0.00	0.00	9.00	22.00
5174.00	0.00	0.00	0.00	4.00	17.00
5178.33	0.00	0.00	0.00	4.00	17.00
5278.00	0.00	0.00	0.00	0.00	13.00
5282.33	0.00	0.00	0.00	0.00	13.00
5629.00	0.00	0.00	0.00	0.00	0.00
5633.33	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 3 – Tax table for actors, variety artists and other entertainers

For payments made on or after 1 July 2018

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 schedule

You should use this schedule if you make payments to employees who are actors, variety artists and other entertainers who receive payments for their performances.

Do not use this schedule 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.

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including lump sum payments.

For all other relevant employees, refer to PAYG withholding Weekly tax table or Fortnightly tax table.

Do not use this schedule 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.

Next step:

■You can download a printable version of the Tax table for actors, variety artists and other entertainers (PDF, 479KB) (NAT 1023) in Portable Document Format (PDF).

Working out the withholding amount

This schedule 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 schedule, you must:

1.    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.

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 schedule 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
$528	0.1520	67.4635
$660	0.2320	109.7327
$889	0.1680	67.4635
$1,602	0.2782	165.4423
$2,163	0.2760	161.9808
$4,326	0.3120	239.8654
$4,326 & over	0.3760	516.7885

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

Coefficients where tax-free threshold not claimed

Weekly earnings  (x) less than	a	b
$90	0.1520	0.1520
$451	0.1874	3.2130
$1,165	0.2782	44.2476
$1,725	0.2760	41.7311
$3,889	0.3120	103.8657
$3,889 & over	0.3760	352.7888

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

1.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.

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

3.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 − 165.4423 = $113.0331. 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 schedule should be tested for accuracy against the Withholding look-up tool (XLSX, 56KB). The results obtained when using the coefficients in this schedule 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 1,729	32.5 cents for each dollar of earnings
1,730 to 3,460	$562 plus 37 cents for each $1 of  earnings over $1,729
3,461 and over	$1,202 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 2018

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 schedule

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

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including return to work payments.

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 2018

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 schedule

Use this schedule 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.

If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including back payments, commissions and bonuses or similar payments.

Other payments you should use this schedule 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.

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 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.

Terms we use

Additional payments

Additional payments include back payments (including lump sum payments in arrears), commissions, bonuses and similar payments.

Normal earnings

Normal earnings are gross taxable earnings and include all salary and wage income, taxable allowances, and overtime earnings for the current financial year. This includes any back payments previously made using Method B(i).

At the start of a financial year, an employee’s normal earnings can be based on the last full pay period worked in the previous financial year.

If an employee’s pay fluctuates significantly, you can use an average of gross taxable earnings for the current financial year (or, if applicable, the previous financial year).

If an employee has no current or past normal earnings (for example, the employee is newly employed), you can include expected future earnings in your calculations. This can be based on the employee’s contracted or expected salary for the financial year.

For the purposes of this table, normal earnings do not include employment termination payments or unused leave payments made on termination of employment.

Average total earnings

Average total earnings are the sum of all normal earnings paid in the current financial year, including current pay, plus any current year back payments if Method B(i) is used to calculate withholding. Then divide the total earnings by the number of pay periods to date (including the current pay period).

Pay periods per financial year

Pay periods per financial year refers to a total of 52 pay periods if paid weekly, 26 pay periods if paid fortnightly or 12 pay periods if paid monthly. No adjustments are required for a 53 week / 27 fortnight year.

Withholding limit

If your employee has a Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) or Financial Supplement debt, see HELP, SSL, TSL, SFSS and additional payments.

If you use Method A or Method B(ii), the amount of tax to be withheld from an additional payment is limited to a maximum of 47% of the additional payment. If the withholding amount calculated (including a HELP, SSL, TSL or Financial Supplement component) using Method A or Method B(ii) exceeds 47% of the additional payment being made, then the amount is reduced to be equal to 47% of that payment. The withholding limit applies to the additional payment only and not to normal earnings for the current pay period.

For some employees, the withholding limit may result in their withholding amounts not being sufficient to cover their end-of-year tax liability, as their total earnings for the financial year may exceed the HELP, SSL, TSL or Financial Supplement repayment threshold or attract a higher rate of tax. Under these circumstances, your employee can arrange an upwards variation by entering into an agreement with you to vary the rate or amount of withholding.

For more information about withholding variations, refer to:

■For employers: Variations

■For employees: Varying your PAYG withholding.

For more information about HELP, SSL, TSL and Financial Supplement repayment thresholds, see HELP, SSL, TSL and SFSS repayment thresholds and rates.

Working out the withholding amount

To work out the amount you need to withhold from an additional payment, you must use either Method A or Method B.

Using Method B is more complex but produces a withholding amount that more closely approximates the actual tax payable.

Calculations made using either method are acceptable to work out the withholding amount. If your calculation using either method results in a negative amount, you treat the result as nil.

Using Method A

Use this method for any additional payments made regardless of the financial year the additional payment applies to. This includes all back payments, commissions, bonuses or similar payments.

This method calculates withholding by apportioning additional payments made in the current pay period over the number of pay periods in a financial year, and applying that average amount to the gross earnings in the current pay period.

If you are paying a commission, bonus or similar payment for a defined period of less than 12 months, you can choose to calculate withholding by using the number of pay periods the payment relates to at step 3. For example, if a commission relates to four weeks and the employee is paid weekly, you divide the commission by four pay periods at step 3, rather than 52 pay periods.

Method A instructions

4.     Step	5.     Instruction
1	Work out your employee’s gross earnings excluding any additional payments for the current pay period. Ignore any cents.
2	Use the relevant tax table to find the amount to be withheld from your employee’s gross earnings in step 1.
3	Add any additional payments to be made in the current pay period together and divide the total by the number of pay periods in the financial year (that is, 52 weekly pay periods, 26 fortnightly pay periods or 12 monthly pay periods). Ignore any cents.
4	Add the amount at step 3 to the gross earnings at step 1.
5	Use the relevant tax table to find the amount to be withheld from the amount at step 4.
6	Subtract the amount at step 2 from the amount at step 5.
7	Multiply the amount at step 6 by the number of pay periods used in step 3.
8	Multiply the additional payment being made in the current pay period by 47%.
9	Use the lesser amount of step 7 and step 8 for the withholding on the additional payment. Ignore any cents.
10	Work out the total PAYG withholding for the current pay period by adding the withholding on the additional payment (step 9) to the withholding on the gross earnings (step 2).

Examples:

Case E (i): Turning 60 during the financial year

On 1 July 2018 Loraine was 59 years old receiving a capped defined benefit income stream for the full year. Loraine turns 60 on 12 September 2018. 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 on the income she receives after she turns 60.

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 for the full year made up of the following:

■    a tax-free component of $400

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

A. Work out Loraine's reduced defined benefit income cap for the 2019 financial year as follows:

■    Step 1 Number of days from Loraine's birthday to 30 June 2019 is 292.

■    Step 2 Step 1 result expressed as a percentage of the year: 292/365 = 80%

■    Step 3 Multiply the general defined benefit cap by step 2 result: $100,000 × 80%.

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

B. Annualise the components that make up Loraine's super income stream:

■    a fortnightly tax-free component of $400. Annualised amount $10,400           ($400 x 26)

■    a taxable component - taxed element of $4,800. Annualised amount $124,800 ($4,800 x 26)

C. Add the annualised amounts of each component $10,400 + $124,800 = $135,200

D. Work out the amount of income Loraine earned after she turned 60.

       Multiply the annual equivalent (step C) of Loraine's fortnightly super income stream by the percentage worked out at step 2.  $135,200 × 80% = $108,160

E. Work out the remaining fortnights in the financial year from when Loraine turned 60 that withholding applies: 292 days/14 days = 20

F. Work out the withholding rate as follows:

(i) Calculate the fortnightly equivalent of the amount in excess of her reduced cap of $80,000.

$108,160 − $80,000 = $28,160

Loraine is paid fortnightly, therefore:

$28,160/ 20 (remaining fortnights) = $1,408 (ignoring cents)

(ii) Divide the amount calculated at (i) by two.

$1,408/ 2 = $704 (rounded to the nearest dollar)

(iii) Use the Fortnightly tax table to calculate the withholding amount relevant to the amount worked out in (ii).

As Loraine has claimed the tax-free threshold the withholding amount is $0.

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, even if the withholding amount is zero.

If a payee only had a untaxed element or a combination of all three elements then you will need to go to part C or part D respectively to work out the withholding after determining the reduced defined benefit income cap. However the following changes to certain steps in each of these parts will be required:

■    Multiply step 2 of part C or step 1 of part D (the annualised amount) by the percentage of the financial year the payee is 60 years or over (the figure from step 2 in the Steps to reduce the defined benefit cap section). Use this figure in the relevant steps in part C or part D instead of the annualised amount.

■    In step 2 of part B or step 3 and step 5 of part D, divide the relevant excess amount by the number of the relevant periods in the financial year since the payee turned 60 to the end of the financial year.

■    In step 3 of part C and step 7 of part D, divide the relevant capped offset amount by the number of relevant periods in the financial year since the payee turned 60 to the end of the financial year.

Case E (ii): Turning 60 during the financial year - income stream made up of other components

Using Loraine's circumstances from the previous example, if Loraine receives fortnightly income of $6,000 which was made up of $2,000 tax-free component, $3,000 taxed element and $1,000 untaxed element. Loraine turns 60 on the 12 September 2018.

Step 1 Convert all of the components of the income stream to an annualised amount.   Total income stream $6,000 x 26 = $156,000

Taxed element $3,000 x 26 = $78,000

Untaxed element  $1,000 x 26= $26,000

Tax-free component $2,000 x 26 = $52,000

Step 2 Apply the percentage that Loraine was over 60 to the whole of the annualised income stream $156,000 x 80% = $124,800

Step 3 From step 2 in part D add together the annualised tax-free component and taxed element $52,000 + $78,000 = $130,000

Step 4 Subtract Loraine's reduced cap of $80,000 from $130,000. Result is $50,000

Step 5 Divide the result in step 4 by the remaining fortnights  $50,000/20 = $2,500 (ignore cents)

Step 6 Divide the amount at step 5 by two. $2,500/2 = $1,250. Add Loraine's fortnight untaxed element amount $1,000. This totals $2,250. Using the Fortnightly tax table the withholding amount for $2,250 is $452.

As Loraine's annualised tax-free component and taxed element is above her cap no tax offset is applicable.

Examples:

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 30 December 2018.

Sarah's reduced defined benefit income cap for the 2019 financial year is worked out as follows:

■    Step 1 Number of days from Sarah's first income stream payment to 30 June 2019 =  183

■    Step 2 Step 1 result expressed as a percentage of the year: 183/365 = 50.137%

■    Step 3 Multiply the general defined benefit cap by step 2 result: $100,000 × 50.137%

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

Sarah’s income stream for the period between 30 December 2018 and 30 June 2019 comprises of a:

■    taxable component - taxed element: $40,000

■    taxable component - untaxed element: $20,000

■    tax-free component: $15,000

Sarah’s total income stream payments from 30 December 2018 are $75,000.

Sarah is paid fortnightly and claims the tax-free threshold.

As Sarah is paid fortnightly you will need to work out the remaining fortnights that withholding applies in the financial year from when the income stream commenced to be paid: 183 days/14 days = 13

Work out the amount subject to withholding

Step 1 Add together all the annualised components.

$40,000 + $20,000 + $15,000 = $75,000

As the sum is over the $50,137 reduced Cap, proceed to step 2.

Step 2 Add together the annualised tax-free component and taxed element. Subtract the $50,137 reduced cap from this amount.

Sum the annualised tax-free component and taxed element

$40,000 + $15,000 = $55,000

Amount in excess of cap

$55,000 − $50,137 = $4,863

Step 3 Calculate the fortnightly equivalent of the amount in excess of $50,137 calculated at step 2 by using the number of remaining fortnights in the financial year from when the income stream commenced.

$4,863/13 = $374 (ignore cents)

Step 4 Divide the amount calculated at step 3 by two.

$374/ 2 = $187 (ignore cents)

Step 5 Calculate the fortnightly equivalent of the untaxed element of the taxable component using the remaining fortnights in the financial year from when the income stream started and add it to the amount calculated at step 4

($20,000/13) + $187

$1,538 + $187 = $1,725

Step 6 Using the Fortnightly tax table, the withholding amount relevant to the amount calculated in step 5 is $270.

Calculate the tax offset applicable

Step 7 Determine any entitlement to the tax offset. As the sum of Sarah's taxed element and tax-free component is over $50,137, she is no longer eligible for a tax offset for the untaxed element.

If Sarah were eligible you would apply the following:

■    If the sum of the annualised tax-free component and taxed element is less than the reduced Cap, the payee is entitled to a reduced tax offset. Subtract from the reduced Cap the sum of the tax-free component and the taxed element from step 2 and apply 10% to this amount. The result is the tax offset amount the payee is entitled to for the financial year.  

■    Calculate the weekly, fortnightly or monthly equivalent of this tax offset amount for the remaining weeks, fortnights or months that withholding applies in the financial year from when the income stream commenced to be paid. For example, if the income stream started on 30 December 2018 and you pay the payee weekly divide the amount by 26. If you pay fortnightly divide the amount by 13. If you pay monthly divide the amount by 6 (ignore cents in the result).  

Work out the amount to withhold

Step 8 Amount to withhold = withholding amount (step 6) − tax offset (step 7)

= $270 − 0

Total amount to withhold is $270.

Case E (iv): Starting an income stream during the financial year - income stream does not include all components

If Sarah only had a tax-free component and/or a taxable component - taxed element or an untaxed element then you will need to go to part B or part C respectively to work out the withholding after determining the reduced defined benefit income cap. However the following changes to certain steps in each of these parts will be required:

■    In step 1 of part B and step 2 of part C instead of converting the income stream payment to an annualised amount, use the Conversion table for income streams commencing during current financial year to work out the converted amount of the super income stream. Use this figure in the relevant steps in part B or part C instead of the annualised amount.

■    In step 2 of part B, divide the relevant excess amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the Conversion table for income streams commencing during current financial year to work out the appropriate date.

■    In step 3 of part C, divide the relevant capped offset amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the Conversion table for income streams commencing during current financial year to work out the appropriate date.

Example:

Case E (v): 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's partner died on 27 February 2019; 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.

Freya's reduced defined benefit income cap for the 2019 financial year is worked out as follows:

■    Step 1 Number of days from Freya's first income stream payment to 30 June 2019 is 124

■    Step 2 Step 1 result expressed as a percentage of the year: 124/365 = 33.973%

■    Step 3 Multiply the general defined benefit cap by step 2 result: $100,000 × 33.973%

■    Freya's reduced defined benefit income cap is $33,973.

Freya was also receiving a defined benefit income stream in her own right, her defined benefit income cap will be further reduced by the 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.

Her income stream is also taxed under part A of this schedule.

Reversionary Cap $33,973 − (0.33973 × $70,000).

Freya's reduced Defined Benefit Cap is now $10,192 (rounded to the nearest dollar)

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 28 February 2019 is $50,000.

Reversionary income in excess of the reduced cap of $10,192 is $39,808.

Calculate Freya's withholding on her reversionary income stream

Use part C to work out Freya's withholding amount, however you will need to work out the remaining fortnights in the financial year from when the income stream started, to apply the correct withholding as per previous examples.

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

$40,000 − $10,192 = $29,808

Freya is paid fortnightly from 28 February 2019, therefore:

$29,808/8 = $3,726 (ignoring cents)

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

$3,726/2 = $1,863 (ignoring cents)

Step 3 Convert the untaxed element into fortnightly payments.

$10,000/8 = $1,250

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

$1,863 + $1,250

= $3,113

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 $3,113 is $1,006.

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: 01/07/2018 - 30/06/2019

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: 28/02/2019 - 30/06/2019

Tax withheld $8,048

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.

If Freya's circumstances were different:

You would not reduce Freya’s defined benefit income cap and you would follow the steps in part B, part C or part D (as applicable) to calculate the withholding amount if:

■    Freya was 60 years or over for the full financial year and was receiving the reversionary income stream for the full financial year, whether her husband died before or after he was 60, or

■    Freya turns 60 during the financial year and her husband died aged 60 or over, and she was in receipt of the reversionary income stream for the full financial year

If Freya was under 60 for the full financial year and Freya's husband had died before he turned 60, you would not reduce the defined benefit income cap and you would follow the steps in part A to calculate the withholding amount.

If Freya was turns 60 during the financial year and her husband died aged under 60, and she was in receipt of the reversionary income stream for the full financial year, you would reduce the defined benefit income cap based on the date she turned 60 years of age and you would follow the relevant steps that are set out in the Lorraine examples to calculate the withholding amount.

If Freya was 60 or over for the full financial year or turns 60 during the financial year, and she received the reversionary income stream for part of the year you would reduce the defined income cap based on either the day she turned 60 or the start of the income stream. You would follow the steps in part B, part C or part D (as applicable) to calculate the withholding amount. However the following changes to certain steps in each of these parts will be required:

■    In step 1 of part B and step 2 part C or part D, instead of converting the income stream payment to an annualised amount, use the Conversion table for income streams commencing during current financial year to work out the converted amount of the super income stream. Use this figure in the relevant steps in part B, part C or part D instead of the annualised amount.

■    In step 2 of part B or step 3 and step 5 of part D, divide the relevant excess amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the Conversion table for income streams commencing during current financial year to work out the appropriate date.

■    In step 3 of part C or step 3 and step 5 in part D, divide the relevant capped offset amount by the number of remaining periods in the financial year since the income stream started or the payee turned 60 to the end of the financial year. Use the Conversion table for income streams commencing during current financial year to work out the appropriate date.

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 death benefit (reversionary) income stream is a super 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 if the payee is:

■60 years or over, or

■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 2019 financial year, the defined benefit income cap will be $100,000 (the $1.6 million general transfer balance cap divided by 16).

See also:

■Law Companion Ruling LCR 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 1961, they will reach their preservation age of 57 on 1 October 2018. The table below will help with this:

Preservation age by date of birth range

Date of birth	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 2018, and is subject to indexation. The cap may also need to 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

Conversion table for income streams commencing during current financial year

The table below can be used to determine the period to use for calculating withholding for income streams that start during the financial year:

Age of payee	If death benefit (Reversionary) income stream	8.     When income stream started	Calculate portion of income stream for the following period
Over 60 years for full financial year	Any age for deceased	Any time during the year	Start of income stream to end of financial year
Turns 60 years during financial year	Before payee turns 60	Day payee turns 60 to end of year
	After payee turns 60	Start of income stream to end of financial year
	Deceased was less than 60	Before payee turns 60	Day payee turns 60 to end of year
		After payee turns 60	Start of income stream to end of financial year
	Deceased was 60 years or more	Before Payee turns 60
		After payee turns 60
Under 60 years for full financial year	Deceased was 60 years or more

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 our 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 2018

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 schedule

This schedule applies to payments to individuals – including backpackers – who are working in Australia and hold at the time of the payment a:

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).

This schedule applies to all payments made to working holiday makers, including:

■salary and wages

■allowances

■termination payments

■unused leave

■return to work payments

■back payments, commissions, bonuses and similar payments

■payments to actors and entertainers.

If you employ individuals under the Seasonal Worker Programme, 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 (XLSX, 35KB)

■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 $90,000, 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 $90,000 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 2018–19 income year.

To work out the correct amount to withhold, put $680 into the Withholding look-up tool (XLSX, 35KB) (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:

■Working holiday maker employer 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 2018–19 apply for working holiday makers holding a subclass 417 or 462 visa from 1 July 2018.

Table A: Working holiday makers income tax rates for 2018–19

Taxable income	Tax rate	Value (a)
$0 – $37,000	15% on each $1 up to $37,000	0.15
$37,001 – $90,000	32.5% on each $1 over $37,000 to $90,000	0.325
$90,001 – $180,000	37% on each $1 over $90,000 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)

= 0.15 × 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 2019 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 2019 to April 2019, in the 2018–19 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 $90,000)

Current pay = $3,570.20

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

Withholding = 0.325 × 3,570

= 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 schedule should be tested for accuracy against the Withholding look-up tool (XLSX, 35KB). The results obtained when using the coefficients in this schedule 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.

Working holiday makers cannot have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) or Financial Supplement debt.

Working holiday makers cannot receive Community Development Employment Projects (CDEP) payments or Lump sum A, B or D payments.

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.