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  • Coefficients to work out the weekly amounts to withhold including the study and training support loans component

    Your employee’s total withholding, including the study and training support loans component, can be calculated using the formula and coefficients stated below.

    Using a formula

    The formulas comprise linear equations of the form y = axb, where:

    • y is the weekly withholding amount expressed in dollars
    • x is the number of whole dollars in the weekly earnings plus 99 cents
    • a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).

    If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a study and training support loans debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the study and training support loans component and one will not – for example, name one ‘scale 2’ and the other ‘scale 22’.

    The study and training support loans component does not apply if the employee has not provided a tax file number (TFN).

    For scales without the study and training support loans component, refer to Statement of formulas for calculating amounts to be withheld.

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

    With study and training support loans debt

    Weekly earnings
    (x) less than
    $

    a

    b

    72

    0.1900

    0.1900

    361

    0.2342

    3.2130

    546

    0.3477

    44.2476

    685

    0.3577

    44.2476

    747

    0.3677

    44.2476

    813

    0.3727

    44.2476

    882

    0.3777

    44.2476

    932

    0.3827

    44.2476

    956

    0.3800

    41.7311

    1035

    0.3850

    41.7311

    1118

    0.3900

    41.7311

    1206

    0.3950

    41.7311

    1299

    0.4000

    41.7311

    1380

    0.4050

    41.7311

    1398

    0.4500

    103.8657

    1503

    0.4550

    103.8657

    1615

    0.4600

    103.8657

    1732

    0.4650

    103.8657

    1855

    0.4700

    103.8657

    1990

    0.4750

    103.8657

    2130

    0.4800

    103.8657

    2279

    0.4850

    103.8657

    3111

    0.4900

    103.8657

    3111 & over

    0.5700

    352.7888

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

    With study and training support loans debt

    Weekly earnings
    (x) less than
    $

    a

    b

    355

    422

    0.1900

    67.4635

    528

    0.2900

    109.7327

    711

    0.2100

    67.4635

    896

    0.3477

    165.4423

    1035

    0.3577

    165.4423

    1097

    0.3677

    165.4423

    1163

    0.3727

    165.4423

    1232

    0.3777

    165.4423

    1282

    0.3827

    165.4423

    1306

    0.3800

    161.9808

    1385

    0.3850

    161.9808

    1468

    0.3900

    161.9808

    1556

    0.3950

    161.9808

    1649

    0.4000

    161.9808

    1730

    0.4050

    161.9808

    1748

    0.4500

    239.8654

    1853

    0.4550

    239.8654

    1965

    0.4600

    239.8654

    2082

    0.4650

    239.8654

    2205

    0.4700

    239.8654

    2340

    0.4750

    239.8654

    2480

    0.4800

    239.8654

    2629

    0.4850

    239.8654

    3461

    0.4900

    239.8654

    3461 & over

    0.5700

    516.7885

    Foreign residents – Scale 3

    With study and training support loans debt

    Weekly earnings
    (x) less than
    $

    a

    b

    896

    0.3250

    0.3250

    1035

    0.3350

    0.3250

    1097

    0.3450

    0.3250

    1163

    0.3500

    0.3250

    1232

    0.3550

    0.3250

    1306

    0.3600

    0.3250

    1385

    0.3650

    0.3250

    1468

    0.3700

    0.3250

    1556

    0.3750

    0.3250

    1649

    0.3800

    0.3250

    1730

    0.3850

    0.3250

    1748

    0.4300

    77.8846

    1853

    0.4350

    77.8846

    1965

    0.4400

    77.8846

    2082

    0.4450

    77.8846

    2205

    0.4500

    77.8846

    2340

    0.4550

    77.8846

    2480

    0.4600

    77.8846

    2629

    0.4650

    77.8846

    3461

    0.4700

    77.8846

    3461 & over

    0.5500

    354.8077

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

    With study and training support loans debt

    Weekly earnings
    (x) less than
    $

    a

    b

    355

    711

    0.1900

    67.4635

    896

    0.3277

    165.4423

    1035

    0.3377

    165.4423

    1097

    0.3477

    165.4423

    1163

    0.3527

    165.4423

    1232

    0.3577

    165.4423

    1282

    0.3627

    165.4423

    1306

    0.3600

    161.9808

    1385

    0.3650

    161.9808

    1468

    0.3700

    161.9808

    1556

    0.3750

    161.9808

    1649

    0.3800

    161.9808

    1730

    0.3850

    161.9808

    1748

    0.4300

    239.8654

    1853

    0.4350

    239.8654

    1965

    0.4400

    239.8654

    2082

    0.4450

    239.8654

    2205

    0.4500

    239.8654

    2340

    0.4550

    239.8654

    2480

    0.4600

    239.8654

    2629

    0.4650

    239.8654

    3461

    0.4700

    239.8654

    3461 & over

    0.5500

    516.7885

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

    With study and training support loans debt

    Weekly earnings
    (x) less than
    $

    a

    b

    355

    711

    0.1900

    67.4635

    713

    0.3277

    165.4423

    891

    0.3777

    201.1048

    896

    0.3377

    165.4425

    1035

    0.3477

    165.4425

    1097

    0.3577

    165.4425

    1163

    0.3627

    165.4425

    1232

    0.3677

    165.4425

    1282

    0.3727

    165.4425

    1306

    0.3700

    161.9810

    1385

    0.3750

    161.9810

    1468

    0.3800

    161.9810

    1556

    0.3850

    161.9810

    1649

    0.3900

    161.9810

    1730

    0.3950

    161.9810

    1748

    0.4400

    239.8656

    1853

    0.4450

    239.8656

    1965

    0.4500

    239.8656

    2082

    0.4550

    239.8656

    2205

    0.4600

    239.8656

    2340

    0.4650

    239.8656

    2480

    0.4700

    239.8656

    2629

    0.4750

    239.8656

    3461

    0.4800

    239.8656

    3461 & over

    0.5600

    516.7887

    Note: Withholding amounts including the study and training support loans component worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG and study and training support loans tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.

    Last modified: 12 Jun 2020QC 62838