• Fortnightly tax table

    For payments made on or after 1 October 2016

    Use the Withholding look-up tool to quickly work out the amount to withhold (XLSX, 55.7KB)This link opens in a new window.

    Using this table

    You should use this table if you make any of the following payments on a fortnightly basis:

    • salary, wages, allowances and leave loading to employees
    • paid parental leave
    • directors' fees
    • salary and allowances 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 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).

    Also use this table for payments made to foreign residents.

    Other tax tables may apply if you made payments to shearers, workers in the horticultural industry, performing artists and those engaged on a daily or casual basis.

    Get it done

    You can download a printable look-up table of fortnightly withholding amounts (PDF, 602KB)This link will download a file in Portable Document Format (PDF).

    Working out the withholding amount

    1. Calculate your employee's total fortnightly earnings - add any allowances and irregular payments that are to be included in this fortnight's pay to the normal fortnightly earnings, ignoring any cents.
    2. Input the amount from step 1 into the Withholding look-up tool (XLSX, 55.7KB)This link opens in a new window, as per instructions in the tool.
    3. Use the appropriate column to find the correct amount to withhold. If your employee is
      1. claiming the tax-free threshold, use column 2
      2. not claiming the tax-free threshold, use column 3.
       
    4. If your employee has an entitlement to a tax offset, use the Ready reckoner for tax offsets to convert the employee’s estimate of their full-year entitlement into a fortnightly offset value. Then subtract this value from the withholding amount found in step 3.
    5. If your employee is entitled to make an adjustment for the Medicare levy, subtract the value of the adjustment, determined from the Medicare levy adjustment fortnightly tax table from the amount found in step 4.
    6. If your employee has advised you of an accumulated Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) or Financial Supplement debt, add the amount determined from the HELP/SSL/TSL fortnightly tax table or SFSS fortnightly tax table to the amount you calculated in step 5.

    Do not allow for any tax offsets or Medicare levy adjustment if any of the following apply:

    • you use column 3
    • you use foreign resident tax rates
    • when your employee has not provided you with their TFN.

    Example

    An employee has fortnightly earnings of $987.99.

    To work out the correct amount to withhold, ignore cents, input $987 into the Withholding look-up tool (XLSX, 55.7KB)This link opens in a new window.

    If the employee is:

    • claiming the tax-free threshold, use column 2 to find the correct amount to withhold ($70).
    • not claiming the tax-free threshold, use column 3 to find the correct amount to withhold ($256).
    End of example

    When there are 27 pays in a financial year

    In some years, you may have 27 pays instead of the usual 26. As this table is based on 26 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 withholdling amount

    Fortnightly earnings
    $

    Additional withholding
    $

    1,400 to 3,049

    12

    3,050 to 6,799

    17

    6,800 and over

    42

    Using a formula

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

    If you have developed your own payroll software package, refer to Statement of formulas for calculating amounts to be withheld.

    Last modified: 16 Sep 2016QC 50008