You can use our online tax withheld calculator to work out how much tax to withhold. Alternatively, you can use the range of tax tables we produce.
These take into account the Medicare levy, study and training support loans, and tax-free threshold.
Withholding more tax than you should
Discovering your error early
If you withhold more tax than you should and you discover the error early, you must refund the extra amount you withheld to the payee, even if you have already paid the amount to us.
If you have already paid the amount to us, you can offset the amount against another withholding amount you are liable to pay us in the future for the relevant year. Remember to record this offset in your accounts.
Discovering your error late
If you withhold more tax than you should and you discover the error later than 30 June after the end of the year in which the withheld amount relates, don't refund the amounts to your payee – if you do, we can't refund the amount to you. To rectify this:
- you will need to issue your payee with an amended payment summary as well as complete and forward us an amended PAYG payment summary statement (NAT 3447)
- your payee will need to request an income tax amendment if they have already lodged their income tax return for that financial year.
If you have already paid the amount to us and you're not liable to pay us any further withholding amounts for the relevant year, you need to lodge a revised activity statement.
You can revise an activity statement:
- using Online services for business – if you are a registered user
- by contacting us on 13 72 26.
For more information see: