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

Last updated 12 October 2020

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

Weekly earnings
(x) less than
$

a

b

88

0.1900

0.1900

371

0.2348

3.9639

515

0.2190

−1.9003

932

0.3477

64.4297

1,957

0.3450

61.9132

3,111

0.3900

150.0093

3,111 & over

0.4700

398.9324

Where the employee claimed the tax-free threshold in Tax file number declaration – Scale 2

Weekly earnings
(x) less than
$

a

b

359

438

0.1900

68.3462

548

0.2900

112.1942

721

0.2100

68.3465

865

0.2190

74.8369

1,282

0.3477

186.2119

2,307

0.3450

182.7504

3,461

0.3900

286.5965

3,461 & over

0.4700

563.5196

Foreign residents – Scale 3

Weekly earnings
(x) less than
$

a

b

2,307

0.3250

0.3250

3,461

0.3700

103.8462

3,461 & over

0.4500

380.7692

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

Earnings

Tax rate

Resident
$1 & over

0.4700

Foreign resident
$1 & over

0.4500

Where the employee claimed the FULL exemption from Medicare levy in Medicare levy variation declaration – Scale 5

Weekly earnings
(x) less than
$

a

b

359

721

0.1900

68.3462

865

0.1990

74.8365

1,282

0.3277

186.2115

2,307

0.3250

182.7500

3,461

0.3700

286.5962

3,461 & over

0.4500

563.5192

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

Weekly earnings
(x) less than
$

a

b

359

721

0.1900

68.3462

739

0.1990

74.8365

865

0.2490

111.8308

924

0.3777

223.2058

1,282

0.3377

186.2119

2,307

0.3350

182.7504

3,461

0.3800

286.5965

3,461 & over

0.4600

563.5196

Notes

  1. Scale 1 contains a negative value for one of the b coefficients. This is intentional.
  2. If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings.
  3. Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.
  4. 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.
  5. Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.
  6. Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
  7. Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only.
  8. For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $22,801 ($438 per week) or less. Where the taxable income exceeds $22,801 but is less than $28,501 ($548 per week), the levy is shaded in at the rate of 10% of the excess over $22,801. Where a person’s taxable income is $28,501 ($548 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
  9. 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

Parameter

Scale 2

Scale 6

Weekly earnings threshold

438

739

Weekly earnings shade-in threshold

548

924

Medicare levy family threshold

38,474

38,474

Weekly family threshold divisor

52

52

Additional child

3,533

3,533

Shading out point multiplier

0.1000

0.0500

Shading out point divisor

0.0800

0.0400

Weekly levy adjustment factor

438.4800

739.8800

Medicare levy

0.0200

0.0100

QC63798