• ## When to work out the study and training support loans component

You will need to calculate the study and training support loans component when your employee has given you a Tax file number declaration or Withholding declaration and has:

• answered yes to the question on whether they have a
• Higher Education Loan Program (HELP) debt
• VET Student Loan (VSL) debt
• Financial Supplement (FS) debt
• Student Start-up Loan (SSL) debt (including ABSTUDY SSL debts)
• Trade Support Loan (TSL) debt

• not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income
• claimed the tax-free threshold or is a foreign resident with earnings of one of the following
• \$904 or more if paid weekly
• \$1,808 or more if paid fortnightly
• \$3,917.33 or more if paid monthly
• \$11,752 or more if paid quarterly.

If your employee has not claimed the tax-free threshold, the study and training support loans component is calculated on earnings of:

• \$554 or more if paid weekly
• \$1,108 or more if paid fortnightly
• \$2,400.67 or more if paid monthly
• \$7,202 or more if paid quarterly.

You must withhold the study and training support loans component from all your employee's earnings, including taxable allowances, bonuses and commissions.

Example 1

Employee has claimed the tax-free threshold and has weekly earnings of \$1,095.84.
STSL component = \$1,095.99 × 2% = \$22.00 rounded to the nearest dollar.

End of example

Example 2

Employee has claimed the tax-free threshold and has fortnightly earnings of \$2,355.78.
Weekly equivalent of \$2,355.78 = \$1,177.99 (\$2,355.78 ÷ 2, ignoring cents and adding 99 cents).
Weekly STSL component = \$1,177.99 × 3% = \$35.00 rounded to the nearest dollar.
Fortnightly STSL component = \$70.00 (\$35.00 × 2).

End of example

Example 3

Employee has claimed the tax-free threshold and has monthly earnings of \$5,488.45.
Weekly equivalent of \$5,488.45 = \$1,266.99
(\$5,488.45 × 3 ÷ 13, ignoring cents and adding 99 cents).
Weekly STSL component = \$1,266.99 × 3.5% = \$44.00 rounded to the nearest dollar.
Monthly STSL component = \$191.00 (\$44.00 × 13 ÷ 3, rounded to the nearest dollar).

End of example

Do not withhold any amount for study and training support loans debts from lump sum termination payments.

## Rounding of withholding amounts

Withholding amounts calculated as a result of applying the above formulas are 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.

## Payroll software

Software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data provided at Tax tables. The results obtained when using the coefficients in this schedule may differ slightly from the sums of the amounts shown in the PAYG tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.