• Sample data – Scale 6

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Weekly Medicare half-levy adjustment

    Weekly
    earnings
    $

    1
    child
    $

    2
    children
    $

    3
    children
    $

    4
    children
    $

    5
    children
    $

    628

    629

    683

    3.00

    3.00

    3.00

    3.00

    3.00

    684

    3.00

    3.00

    3.00

    3.00

    3.00

    739

    6.00

    6.00

    6.00

    6.00

    6.00

    740

    3.00

    6.00

    6.00

    6.00

    6.00

    752

    2.00

    5.00

    6.00

    6.00

    6.00

    753

    2.00

    5.00

    6.00

    6.00

    6.00

    765

    2.00

    5.00

    6.00

    6.00

    6.00

    766

    2.00

    5.00

    6.00

    6.00

    6.00

    778

    1.00

    4.00

    6.00

    6.00

    6.00

    779

    1.00

    4.00

    6.00

    6.00

    6.00

    791

    1.00

    4.00

    6.00

    6.00

    6.00

    792

    1.00

    4.00

    6.00

    6.00

    6.00

    804

    3.00

    6.00

    6.00

    6.00

    805

    3.00

    6.00

    6.00

    6.00

    817

    3.00

    5.00

    6.00

    6.00

    818

    2.00

    5.00

    6.00

    6.00

    830

    2.00

    5.00

    6.00

    6.00

    831

    2.00

    5.00

    6.00

    6.00

    843

    1.00

    4.00

    6.00

    6.00

    844

    1.00

    4.00

    6.00

    6.00

    856

    1.00

    4.00

    6.00

    6.00

    857

    1.00

    4.00

    6.00

    6.00

    869

    3.00

    6.00

    7.00

    870

    3.00

    6.00

    7.00

    882

    3.00

    6.00

    7.00

    883

    3.00

    5.00

    7.00

    895

    2.00

    5.00

    7.00

    896

    2.00

    5.00

    7.00

    908

    2.00

    4.00

    7.00

    909

    1.00

    4.00

    7.00

    921

    1.00

    4.00

    7.00

    922

    1.00

    4.00

    7.00

    934

    3.00

    6.00

    935

    3.00

    6.00

    947

    3.00

    6.00

    948

    3.00

    6.00

    960

    2.00

    5.00

    961

    2.00

    5.00

    973

    2.00

    5.00

    974

    2.00

    5.00

    986

    1.00

    4.00

    987

    1.00

    4.00

    1011

    3.00

    1012

    3.00

    1079

    1080

    Fortnightly Medicare half-levy adjustment

    Fortnightly earnings
    $

    1
    child
    $

    2
    children
    $

    3
    children
    $

    4
    children
    $

    5
    children
    $

    1256

    1258

    1366

    6.00

    6.00

    6.00

    6.00

    6.00

    1368

    6.00

    6.00

    6.00

    6.00

    6.00

    1478

    12.00

    12.00

    12.00

    12.00

    12.00

    1480

    6.00

    12.00

    12.00

    12.00

    12.00

    1504

    4.00

    10.00

    12.00

    12.00

    12.00

    1506

    4.00

    10.00

    12.00

    12.00

    12.00

    1530

    4.00

    10.00

    12.00

    12.00

    12.00

    1532

    4.00

    10.00

    12.00

    12.00

    12.00

    1556

    2.00

    8.00

    12.00

    12.00

    12.00

    1558

    2.00

    8.00

    12.00

    12.00

    12.00

    1582

    2.00

    8.00

    12.00

    12.00

    12.00

    1584

    2.00

    8.00

    12.00

    12.00

    12.00

    1608

    6.00

    12.00

    12.00

    12.00

    1610

    6.00

    12.00

    12.00

    12.00

    1634

    6.00

    10.00

    12.00

    12.00

    1636

    4.00

    10.00

    12.00

    12.00

    1660

    4.00

    10.00

    12.00

    12.00

    1662

    4.00

    10.00

    12.00

    12.00

    1686

    2.00

    8.00

    12.00

    12.00

    1688

    2.00

    8.00

    12.00

    12.00

    1712

    2.00

    8.00

    12.00

    12.00

    1714

    2.00

    8.00

    12.00

    12.00

    1738

    6.00

    12.00

    14.00

    1740

    6.00

    12.00

    14.00

    1764

    6.00

    12.00

    14.00

    1766

    6.00

    10.00

    14.00

    1790

    4.00

    10.00

    14.00

    1792

    4.00

    10.00

    14.00

    1816

    4.00

    8.00

    14.00

    1818

    2.00

    8.00

    14.00

    1842

    2.00

    8.00

    14.00

    1844

    2.00

    8.00

    14.00

    1868

    6.00

    12.00

    1870

    6.00

    12.00

    1894

    6.00

    12.00

    1896

    6.00

    12.00

    1920

    4.00

    10.00

    1922

    4.00

    10.00

    1946

    4.00

    10.00

    1948

    4.00

    10.00

    1972

    2.00

    8.00

    1974

    2.00

    8.00

    2022

    6.00

    2024

    6.00

    2158

    2160

     

    Monthly Medicare half-levy adjustment

    Monthly
    earnings
    $

    1
    child
    $

    2
    children
    $

    3
    children
    $

    4
    children
    $

    5
    children
    $

    2721.33

    2725.67

    2959.67

    13.00

    13.00

    13.00

    13.00

    13.00

    2964.00

    13.00

    13.00

    13.00

    13.00

    13.00

    3202.33

    26.00

    26.00

    26.00

    26.00

    26.00

    3206.67

    13.00

    26.00

    26.00

    26.00

    26.00

    3258.67

    9.00

    22.00

    26.00

    26.00

    26.00

    3263.00

    9.00

    22.00

    26.00

    26.00

    26.00

    3315.00

    9.00

    22.00

    26.00

    26.00

    26.00

    3319.33

    9.00

    22.00

    26.00

    26.00

    26.00

    3371.33

    4.00

    17.00

    26.00

    26.00

    26.00

    3375.67

    4.00

    17.00

    26.00

    26.00

    26.00

    3427.67

    4.00

    17.00

    26.00

    26.00

    26.00

    3432.00

    4.00

    17.00

    26.00

    26.00

    26.00

    3484.00

    13.00

    26.00

    26.00

    26.00

    3488.33

    13.00

    26.00

    26.00

    26.00

    3540.33

    13.00

    22.00

    26.00

    26.00

    3544.67

    9.00

    22.00

    26.00

    26.00

    3596.67

    9.00

    22.00

    26.00

    26.00

    3601.00

    9.00

    22.00

    26.00

    26.00

    3653.00

    4.00

    17.00

    26.00

    26.00

    3657.33

    4.00

    17.00

    26.00

    26.00

    3709.33

    4.00

    17.00

    26.00

    26.00

    3713.67

    4.00

    17.00

    26.00

    26.00

    3765.67

    13.00

    26.00

    30.00

    3770.00

    13.00

    26.00

    30.00

    3822.00

    13.00

    26.00

    30.00

    3826.33

    13.00

    22.00

    30.00

    3878.33

    9.00

    22.00

    30.00

    3882.67

    9.00

    22.00

    30.00

    3934.67

    9.00

    17.00

    30.00

    3939.00

    4.00

    17.00

    30.00

    3991.00

    4.00

    17.00

    30.00

    3995.33

    4.00

    17.00

    30.00

    4047.33

    13.00

    26.00

    4051.67

    13.00

    26.00

    4103.67

    13.00

    26.00

    4108.00

    13.00

    26.00

    4160.00

    9.00

    22.00

    4164.33

    9.00

    22.00

    4216.33

    9.00

    22.00

    4220.67

    9.00

    22.00

    4272.67

    4.00

    17.00

    4277.00

    4.00

    17.00

    4381.00

    13.00

    4385.33

    13.00

    4675.67

    4680.00

     

    Other statements of formulas

    Statements of formulas for other classes of payees are also available. These include PAYG withholding:

    Tax file number (TFN) declarations

    The answers your payees provide on their Tax file number declaration (NAT 3092) determines the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from a payee, it will override the previous one.

    If a payee does not give you a valid Tax file number declaration within 14 days of starting a payer/payee relationship, you must complete a Tax file number declaration with all available details of the payee and send it to us.

    What if a TFN has not been provided?

    You must withhold 46.5% for residents and 45% for foreign residents from the taxable component, ignoring any cents if a super income stream payment is made to your payee and one of the following applies:

    • they have not quoted their TFN
    • they have not claimed an exemption from quoting their TFN
    • they have not advised you that they have applied for a TFN or have made an enquiry with us.

    If a payee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals (NAT 1432) with us, they have 28 days to provide you with their TFN.

    If the payee has not given you their TFN within 28 days, you must withhold 46.5% from any payment you make to a resident payee and 45% from a foreign resident payee from the relevant element(s) of the taxable component of the super income stream payment (ignoring any cents) unless we tell you not to.

     

    Attention

    Do not allow for any tax offsets or Medicare levy adjustments. Do not withhold any amount for:

    • Higher Education Loan Program (HELP) debts
    • Financial Supplement (FS) debts.
    End of attention

    What if your payee is under 18?

    There is no requirement for payees who are under 18 years of age to provide you with their TFN, provided that the payment you make to them does not exceed:

    • $350 per week (if you pay weekly)
    • $700 per fortnight (if you pay fortnightly)
    • $1,517 per month (if you pay monthly).

    What if your payee is a foreign resident?

    If your payee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.

    There are two ways you can withhold from a foreign resident’s earnings:

    • If they have not given you a valid TFN, use scale 3.
    • If they have given you a valid TFN, use scale 4.

    Generally, foreign resident payees cannot claim tax offsets. In limited circumstances, they may be entitled to claim a zone or overseas forces offset. If your foreign resident payee has claimed a tax offset on the Tax file number declaration, you don’t need to make any adjustments to the amount you withhold.

    Withholding declarations

    A payee may use a Withholding declaration (NAT 3093) to advise you of a tax offset they choose to claim through reduced withholding from you.

    Payees can also use a Withholding declaration to advise you of any changes to their situation that may affect the amount you need to withhold from their payments.

    Changes that may affect the amount you need to withhold include:

    • becoming or ceasing to be an Australian resident for tax purposes
    • claiming or discontinuing a claim for the tax-free threshold
    • advising of a HEL P or FS debt, or changes to them
    • entitlement to a seniors and pensioners tax offset
    • upward variation to increase the rate or amount to be withheld.

    When your payee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from a payee, it will override the previous one.

     

    Attention

    A valid Tax file number declaration must be in place before your payee can provide you with a Withholding declaration.

    End of attention

    What if your payee has a HELP or FS debt?

    If your payee has an accumulated HEL P or FS debt, you may need to withhold additional amounts from their payments. Your payee will need to notify you of this on their Tax file number declaration or Withholding declaration.

     

    Payees who are entitled to a reduction of Medicare levy or do not have to pay the Medicare levy because of low family income, will not have to make a compulsory HELP or FS repayment for that year. The exemption from making a compulsory HELP or FS repayment may be claimed on the Medicare levy variation declaration.

    Allowances

    Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

     

    Find out more

    Withholding from allowances

    End of find out more

    Leave loading changes

    There is no longer a separate withholding scale for payees who are entitled to leave loading and they will no longer have higher withholding from every pay. These payees will now be taxed more accurately when the leave loading is paid.

    Previously, the leave loading scale provided for extra withholding throughout the year to allow $320 of leave loading to be tax-free when paid.

    If you pay leave loading as a lump sum, you now need to use Tax table for back payments, commissions, bonuses and similar payments (NAT 3348) to calculate withholding.

    If you pay leave loading on a pro-rata basis, then add the leave loading payment to earnings for the period to calculate withholding. That is, instead of the one lump sum payment, you make multiple payments during the year when leave is being taken.

    Holiday pay, long service leave and employment termination payments

    Payees who continue working for you

    You must include holiday pay (including any leave loading) and long service leave payments as part of normal earnings, except when they are paid on termination of employment.

     

    Payees who stop working for you

    This tax table does not cover any lump sum payments made to a payee who stops working for you.

    If a payee has unused annual leave, leave loading or long service leave, refer to Tax table for unused leave payments on termination of employment (NAT 3351).

    Any other lump sum payments may be employment termination payments, refer to Tax table for employment termination payments (NAT 70980).

     

    Attention

    Do not withhold any amount for HEL P or FS debts from lump sum termination payments.

    End of attention

    Claiming tax offsets

    If your payee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration.

    To work out the payee’s annual tax offset entitlement into a weekly, fortnightly, monthly or quarterly, refer to tax offsets.

     

    Attention

    Do not allow for any tax offsets if any of the following apply:

    • where no tax-free threshold is claimed
    • you are using foreign resident rates

    when a payee does not provide you with their TFN.

    End of attention

    Medicare levy adjustment

    To claim the Medicare levy adjustment available to some low income earners with dependants, your payee must lodge a Medicare levy variation declaration (NAT 0929) with their Tax file number declaration.

    Some payees may be liable for an increased rate of Medicare levy or the Medicare levy surcharge as a result of new income tests. They can lodge a Medicare levy variation declaration, requesting you to increase the amount to be withheld from their payments.

     

    Work it out

    Medicare levy adjustment

    End of work it out

    Resident income tax rates from 1 July 2012 (not including Medicare levy)

    Taxable income range
    $

    Tax rate
    %

    0 to 18,200

    0

    18,201 to 37,000

    19

    37,001 to 80,000

    32.5

    80,001 to 180,000

    37

    Greater than 180,000

    45

    More information

    How to obtain copies of this publication

    You can download a printable version of Statement of formulas for calculation amounts to be withheld (NAT 1004, 710KB) in Portable Document Format (PDF).

    PAYG withholding publications

    You can access all PAYG withholding tax tables and other PAYG withholding publications quickly and easily from our website. For more information:

    Copies of weekly and fortnightly tax tables are available from selected newsagents. Selected newsagents also hold copies of the following:

    If you need more information about the correct amount of tax to withhold, phone us on either:

    • 13 28 61 if you are an individual
    • 13 28 66 if you are an employer or payer.

     

    Last modified: 17 Jun 2014QC 25920