The method of working out the weekly earnings (x) for the purpose of applying the formulas is as follows:
Example
Weekly income |
$467.59 |
Add allowance subject to withholding |
$9.50 |
Total earnings (ignore cents) |
$477.00 |
Add 99 cents |
$0.99 |
Weekly earnings |
$477.99 |
End of example
Calculating withholding fortnightly, monthly or quarterly amounts
First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings. If you pay:
- fortnightly – divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by two. Ignore any cents in the result and then add 99 cents.
- monthly – obtain the sum of the monthly earnings and the amount of any allowances subject to withholding (if the result is an amount ending in 33 cents, add one cent), multiply this amount by three and then divide by 13. Ignore any cents in the result and then add 99 cents.
- quarterly – divide the sum of the quarterly earnings and the amount of any allowances subject to withholding by 13. Ignore any cents in the result and then add 99 cents.
Then calculate fortnightly, monthly or quarterly withholding amounts as follows:
- fortnightly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by two.
- monthly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13, divide the product by three and round the result to the nearest dollar.
- quarterly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 13.
Tax offsets
The withholding amount calculated using scales 2, 5 or 6 of the formulas is reduced as follows:
- weekly – 1.9% of the total amount claimed at the tax offsets questions on the Withholding declaration (NAT 3093), rounded to the nearest dollar
- fortnightly – 3.8% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
- monthly – 8.3% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar
- quarterly – 25% of the total amount claimed at the tax offsets questions on the Withholding declaration, rounded to the nearest dollar.