• Medicare levy adjustment weekly tax table

    For payments made on or after 1 October 2016

    Use the Medicare levy adjustment tool to quickly work out a Medicare levy adjustment (XLSX, 56.2KB)This link opens in a new window.

    Using this table

    You should use this table if you make payments to your employee on a weekly basis and they are entitled to a Medicare levy adjustment.

    This table should be used with the Weekly tax table and the Medicare levy variation declaration.

    Get it done

    You can download a printable version of Medicare levy adjustment weekly tax table (PDF, 423KB)This link will download a file (NAT 1010) in Portable Document Format (PDF).

    When your employee is entitled to a Medicare levy adjustment

    Your employee is entitled to an adjustment if they meet all of the following requirements:

    • they have provided you with a Medicare levy variation declaration in which they
      • claimed dependants
      • answered yes to question 10 in the declaration ‘Is the combined weekly income of you and your spouse, or your income as a sole parent, less than the relevant amount in table A on page 2?'
       
    • they have weekly earnings of $410 or more, but less than the corresponding amount in column A of Table 1 – for example, an employee who claims two dependent children must have weekly earnings of less than $1,024 to be entitled to a Medicare levy adjustment.

    No Medicare levy is payable on weekly earnings of less than $410.

    If your employee claims more than 10 children, the column A amount is $1,660, plus $80 for each child claimed in excess of 10.

    Column B shows the values used in calculating adjustments for employees with more than five dependent children. If your employee claims more than 10 dependent children, the column B amount is $1,328.10 plus $63.58 for each child in excess of 10.

    For information about how to use table 1 see Working out the Medicare levy adjustment.

    Table 1: Medicare levy adjustments

    Medicare levy adjustment weekly earnings limits

    Dependants

    Column A

    Column B

    Spouse only

    $865

    $0

    1 child

    $944

    $0

    2 children

    $1,024

    $0

    3 children

    $1,103

    $0

    4 children

    $1,183

    $0

    5 children

    $1,262

    $0

    6 children

    $1,342

    $1,073.79

    7 children

    $1,421

    $1,137.37

    8 children

    $1,501

    $1,200.94

    9 children

    $1,580

    $1,264.52

    10 children

    $1,660

    $1,328.10

    Working out the withholding amount

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

    1. Use the Weekly tax table to find the weekly amount to withhold from your employee's earnings, allowing for any tax offsets claimed.
    2. Reduce this amount by the amount of the Medicare levy adjustment, worked out as detailed in Working out the Medicare levy adjustment.

    Where the adjustment equals or exceeds the amount obtained in step 1 the amount to be withheld is nil.

    Last modified: 16 Sep 2016QC 50012