• Medicare levy adjustment weekly tax table

    Attention

    For payments made on or after 1 July 2014 to 30 June 2015

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    Use the new Medicare levy adjustment tool to quickly work out a Medicare levy adjustmentThis link opens in a new window.

    End of work it out

     

    Using this table

    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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    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.

    Attention

    This table should be read with the Weekly tax table (NAT 1005) and the Medicare levy variation declaration (NAT 0929).

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    When your employee 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 (NAT 0929) in which they
      • claimed dependents
      • answered yes to question 10 ‘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 1?'
       
    • they have weekly earnings of $395 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 $977 to be entitled to a Medicare levy adjustment.
    Attention

    No Medicare levy is payable on weekly earnings of less than $395.

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    If your employee claims more than 10 children, the column A amount is $1,584, plus $76 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 $1,267.83 plus $60.70 for each child in excess of 10.

    Find out more

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

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    Table 1: Medicare levy adjustments

     

    Column A

    Column B

    Spouse only

    $826

    -

    Number of children

     

     

    1

    $902

    -

    2

    $977

    -

    3

    $1,053

    -

    4

    $1,129

    -

    5

    $1,205

    -

    6

    $1,281

    $1,025.06

    7

    $1,357

    $1,085.75

    8

    $1,433

    $1,146.44

    9

    $1,508

    $1,207.13

    10

    $1,584

    $1,267.83

    Working out the withholding amount

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

    1. Use the Weekly tax table (NAT 1005) to find the weekly 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 in Working out the Medicare levy adjustment.
    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: 18 Feb 2015QC 39413