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  • Monthly withholding table



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

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    Use the new Withholding look-up tool to quickly work out the amount to withholdThis link opens in a new window.

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    Using this table



    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 any of the following payments on a monthly basis:

    • salary, wages, allowances and leave loading to employees
    • paid parental leave to an eligible worker
    • director’s fees
    • salary and allowances to office holders (including members of parliament, statutory office holders, defence force members and police officers)
    • payments to labour hire workers
    • payments to religious practitioners
    • government education or training payments
    • compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner).

    Also use this table for payments made to foreign residents.

    Other tax tables may apply if you made payments to shearers, workers in the horticultural industry, performing artists and those engaged on a daily or casual basis.

    Working out the withholding amount

    1. Add any allowances and irregular payments that are to be included in this month's pay to the normal monthly earnings, ignoring any cents.
    2. Input the amount from step 1 into the Withholding look-up toolThis link opens in a new window, as per instructions in the tool.
    3. Use the appropriate column to find the correct amount to withhold. If your employee is
      • claiming the tax-free threshold, use column 2
      • not claiming the tax-free threshold, use column 3.
    4. If your employee has an end-of-year entitlement to a tax offset, use the Ready reckoner for tax offsets to convert the employee’s estimate of their full-year entitlement into a monthly offset value. Then subtract this value from the withholding amount found in step 3.
    5. If your employee is entitled to make an adjustment for the Medicare levy, subtract the value of the adjustment, determined from the Medicare levy adjustment monthly tax table (NAT 1012) from the amount found in step 4.
    6. If your employee has advised you of an accumulated Higher Education Loan Program (HELP) or Finance Supplement (FS) debt, add the amount determined from the HELP monthly tax table (NAT 2186) or SFSS monthly tax table (NAT 3308) to the amount you calculated in step 5.

    Do not allow for any tax offsets or Medicare levy adjustment if any of the following apply:

    • you use column 3
    • you use foreign resident tax rates
    • when your employee has not provided you with their TFN.
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    Using a formula

    The withholding amounts shown in this table can be expressed in a mathematical form.

    If you have developed your own payroll software package, to refer to Statement of formulas for calculating amounts to be withheld (NAT 1004).


    Last modified: 18 Feb 2015QC 39410