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  • Withholding the right amount for your employees?

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    9 July 2021

    As an employer, withholding tax from your employee's payments is an important task. Withholding tax helps your employees meet their end-of-year tax liabilities.

    The best way to work out how much to withhold for each of your employees is to use either our:

    • tax tables, by viewing them on our website or downloading them, or
    • tax withheld calculators.

    If you use payroll software, you can check with your provider for the tax table updates

    Our online tax tables and calculators are regularly updated, so you can be certain you're withholding the right amounts for each of your employees.

    One recent change is that from 1 July, the minimum income threshold for study loan repayments increased. This means employees who have a student loan may need to make compulsory repayments once they start earning more than $47,013 per year.

    To help them get it right – make sure you are using the latest study and training support loans tables, which incorporate this change.

    It's also important to remind your employees that if they are studying for the first time or re-starting their studies, they may need to complete a new Tax file number declaration or Withholding declaration form.

    Next steps:

    See also:

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