• How to work out the withholding amount

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    To workout the amount you need to withhold, you must:

    1. Use the Monthly withholding table (NAT 1007) to find the monthly amount to withhold from your payee’s earnings, allowing for any tax offsets claimed.
    2. Reduce this amount by the amount of the Medicare levy adjustment, worked out as detailed below.
    Attention

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

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    Last modified: 14 Jun 2013QC 26015