• Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments

    Attention

    Warning:

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

    End of attention
    Where the tax-free threshold is not claimed in Tax file number declaration – Scale 1

    Weekly earnings
    (x) less than
    $

    a

    b

    45

    0.1900

    0.1900

    361

    0.2216

    1.4232

    932

    0.3427

    45.2055

    1188

    0.3400

    42.6890

    3111

    0.3850

    96.1698

    3111 & over

    0.4650

    345.0928

    Where the payee claimed the tax-free threshold with or without leave loading – Scale 2

    Weekly earnings
    (x) less than
    $

    a

    b

    355

    -

    -

    395

    0.1900

    67.4635

    464

    0.2900

    106.9673

    711

    0.2050

    67.4636

    1282

    0.3427

    165.4424

    1538

    0.3400

    161.9809

    3461

    0.3850

    231.2116

    3461 & over

    0.4650

    508.1347

    Foreign residents –Scale 3

    Weekly earnings
    (x) less than
    $

    a

    b

    1538

    0.3250

    0.3250

    3461

    0.3700

    69.2308

    3461 & over

    0.4500

    346.1538

    Where a tax file number (TFN) was not provided by payee –Scale 4

    Earnings

    Tax rate

    Resident
    $1 & over

    0.4650

    Foreign resident
    $1 & over

    0.4500

    Where the payee 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

    1282

    0.3277

    165.4423

    1538

    0.3250

    161.9808

    3461

    0.3700

    231.2115

    3461 & over

    0.4500

    508.1346

    Where the payee claimed the HALF exemption from Medicare levy in Medicare levy variation declaration –Scale 6

    Weekly earnings
    (x) less than
    $

    a

    b

    355

    -

    -

    629

    0.1900

    67.4635

    711

    0.2400

    98.9471

    740

    0.3777

    196.9260

    1282

    0.3352

    165.4425

    1538

    0.3325

    161.9809

    3461

    0.3775

    231.2117

    3461 & over

    0.4575

    508.1348

    Notes

    1. If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from payee earnings.
    2. Scales 1, 2, 3, 5 and 6 may be applied only where payees 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. Where a payee is not claiming the tax-free threshold, use scale 1 whether or not the payee is entitled to any leave loading.
    5. Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
    6. Scales 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 $20,542 ($395 per week) or less. Where the taxable income exceeds $20,542 but is less than $24,167 ($464 per week), the levy is shaded in at the rate of 10% of the excess over $20,542. Where a person’s taxable income is $24,167 ($464 per week) or more, Medicare is levied at the rate of 1.50% 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

     

    Scale 2
    OLD*

    Scale 2
    NEW

    Scale 6
    OLD

    Scale 2
    New

    Weekly earnings threshold

    362

    395

    606

    629

    Weekly earnings shade-in threshold

    426

    464

    713

    740

    Medicare levy family threshold

    31789

    32743

    31514

    32743

    Weekly family threshold divisor

    52

    52

    52

    52

    Additional child

    2919

    3007

    2919

    3007

    Shading out point multiplier

    0.1000

    0.1000

    0.0500

    0.0500

    Shading out point divisor

    0.0850

    0.0850

    0.0425

    0.0425

    Weekly levy adjustment factor

    362.2900

    395.0400

    606.0400

    629.6700

    Medicare levy

    0.0150

    0.0150

    0.0075

    0.0075

    * These are last years’ scale 7 (without leave loading) Medicare parameters.

    Last modified: 17 Jun 2014QC 25920