• Weekly tax table with no and half Medicare levy

    For payments made on or after 1 October 2016

    Use the Withholding look-up tool to quickly work out the amount to withhold (XLSX, 55.7KB)This link opens in a new window.

    Use the Medicare levy adjustment tool to quickly work out a Medicare levy adjustment (XLSX, 56KB)This link opens in a new window.

    Using this table

    Use this table if you make payments to a prescribed person entitled to a full or half Medicare levy exemption. Prescribed persons include members of the defence force and certain recipients of repatriation and social security pensions and benefits.

    You should use this table if you make any of the following payments to these payees on a weekly basis:

    • salary, wages, allowances and leave loading paid to employees
    • paid parental leave
    • directors' fees
    • salary and allowances paid 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).

    If you make payments to these payees on a monthly or quarterly basis, you will need to convert their payments into weekly earnings. For more information, refer to Working out the monthly or quarterly withholding amounts.

    If you make fortnightly payments, refer to Fortnightly tax table with no and half Medicare levy.

    For this table to apply, your payee must have completed both of the following:

    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.

    Get it done

    You can download a printable version of Weekly tax table with no and half Medicare levy (PDF, 716KB)This link will download a file (NAT 1008) in Portable Document Format (PDF).

    Medicare levy adjustments

    To claim the Medicare levy adjustment available to some low income earners with dependants, your payee must give you a Medicare levy variation declaration with their Tax file number declaration.

    If a payee has claimed a half levy exemption from the Medicare levy and has also answered yes to questions 10 and 12 on the Medicare levy variation declaration, they may be entitled to a Medicare levy adjustment if their weekly earnings are $692 or more. Refer to Medicare levy adjustment to half levy for instructions on working out the Medicare levy adjustment to half levy.

    Eligibility for a full exemption

    To obtain a full exemption from the Medicare levy, your payee must have completed section A of the Medicare levy variation declaration and answered yes to the following:

    • question 5 ‘Do you qualify for a Medicare levy exemption?’
    • question 6 ‘Do you want to claim a full exemption from the Medicare levy?’.

    Eligibility for a half levy exemption

    To obtain a half levy exemption from the Medicare levy, your payee must have completed section A of the Medicare levy variation declaration and answered yes to the following:

    • question 5 ‘Do you qualify for a Medicare levy exemption?’
    • question 7 ‘Do you want to claim a half levy exemption from the Medicare levy?’.

    Working out the withholding amount

    1. Calculate your employee's total weekly earnings - add any allowances and irregular payments that are to be included in this week’s pay to the normal weekly earnings, ignoring any cents.
    2. Input the amount from step 1 into the Withholding look-up tool (XLSX, 55.7KB)This link opens in a new window as per instructions in the tool.
    3. Use the appropriate column to find the amount to withhold. If your employee is:
      – claiming full Medicare levy exemption, use column 2
      – claiming half Medicare levy exemption, use column 3.
    4. Adjust the withholding amount found in step 3 if the following applies to your employee:
      – they have an entitlement to a tax offset
      – they are entitled to an adjustment for the Medicare levy – half levy
      – they have advised you of an accumulated Higher Education Loan Program (HELP), Student Start-up Loan (SSL), Trade Support Loan (TSL) or Financial Supplement debt, see HELP/SSL/TSL weekly tax table or SFSS weekly tax table.

    Examples

    Full exemption from the Medicare levy

    An employee has weekly earnings of $518.40. Ignoring cents, input $518 into the Withholding look-up tool (XLSX, 55.7KB)This link opens in a new window and refer to the corresponding amount to be withheld of $31.00 from column 2.

    The employee has claimed a tax offset of $500 on the Withholding declaration. To work out their weekly equivalent to their entitlement, take 1.9% of $500 which is $10 (rounded to the nearest dollar).

    Subtract this amount from $31.00 and the result of $21.00 needs to be withheld.

    Half Medicare levy exemption

    An employee has weekly earnings of $480.90. Ignoring cents, input $480 into the Withholding look-up tool (XLSX, 55.7KB)This link opens in a new window and refer to the corresponding amount to be withheld of $24.00 from column 3.

    The employee has claimed a tax offset of $1,000 on the Withholding declaration. To work out their weekly entitlement, take 1.9% of $1,000 which is $19.

    Subtract this amount from $24 and the result of $5 needs to be withheld.

    End of example

    Working out the monthly or quarterly withholding amounts

    First calculate the weekly equivalent of monthly or quarterly earnings. If you pay:

    • 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 monthly or quarterly withholding amounts as follows:

    • 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.

    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, refer to Statement of formulas for calculating amounts to be withheld.

    Last modified: 16 Sep 2016QC 50010