• About this schedule

    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

    Amounts to be withheld from payments made weekly, fortnightly, monthly and quarterly, as set out in the relevant PAYG withholding tax table, can be calculated using the formulas and coefficients contained in this schedule.

    Separate formulas apply to:

    • payees who have not claimed the tax-free threshold
    • foreign residents
    • payees claiming a full exemption from Medicare levy
    • payees claiming a half exemption from Medicare levy
    • payees who have claimed the tax-free threshold

    Can you use a formula?

    The formulas comprise linear equations of the form y = ax – b, where:

    • y is the weekly withholding amount expressed in dollars
    • x is the number of whole dollars in the weekly earnings plus 99 cents
    • a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).

    The formulas relate only to the calculation of withholding amounts before any tax offsets and Medicare levy adjustments are allowed. For instructions on the treatment of tax offsets and Medicare levy adjustments, refer to tax offsets.

     

    Find out more

    Withholding amounts

    Allowances

    Employment termination payments

    Unused annual leave

    Long service leave payments on termination

    For sample data to verify that the software program is calculating the correct withholding amounts and Medicare levy adjustments, see Withholding amounts and Medicare levy adjustments .

    End of find out more

     

    Attention

    Withholding amounts calculated using these formulas may vary slightly to those calculated using the method set out in the footnote to the appropriate PAYG withholding tax table. This applies if earnings exceed $3,275 weekly or $6,550 fortnightly.

    End of attention

    Rounding of withholding amounts

    Withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

    Use these rounding rules across all scales except scale 4 (where payee does not provide a TFN). For scale 4, cents are ignored when applying the tax rate to earnings and when withholding amounts are calculated.

    What if there are 53 pay periods in a financial year?

    In some years, you may pay your payees 53 times instead of the usual 52. As this table is based on 52 pays, the extra pay may result in insufficient amounts being withheld. You should let your payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amount in the table below.

    Weekly earnings
    $

    Additional withholding
    $

    700 to 1549

    3

    1,550 to 3,449

    4

    3,450 and over

    9

    What if there are 27 pay periods in a financial year?

    In some years, you may pay your payees 27 times instead of the usual 26. As this schedule is based on 26 pays, the extra pay may result in insufficient amounts being withheld. You should let payees know when this occurs so if they are concerned about a shortfall, they can ask you to withhold the additional amounts in the table below.

    Fortnightly earnings
    $

    Additional withholding
    $

    1,390 to 2,999

    12

    3,000 to 6,799

    16

    6,800 and over

    36

     

    Last modified: 17 Jun 2014QC 25920