Example 1

Employee’s weekly earnings are $465.33 and scale 2 is applied.

x = 465.99

As x is less than $548, WLA is calculated using formula (1):

WLA = (465.99 − 438.48) × 0.1
= 2.7510 or $3.00 (rounded to the nearest dollar).

Example 2

Employee's weekly earnings are $925.25 and the number of children claimed at question 12 is three. Scale 6 is applied.

x = 925.99
WFT = ([3,533 × 3] + 38,474) ÷ 52
= 943.7115 or $943.71 (rounded to the nearest cent)

As x is greater than $924 and less than WFT, WLA is calculated using formula (2):

WLA = 925.99 × 0.01
= 9.2599 or $9.00 (rounded to the nearest dollar).

Example 3

Employee’s weekly earnings are $1,200.47 and the number of children claimed at question 12 is four. Scale 2 is applied.

x = 1,200.99
WFT = ([3,533 × 4] + 38,474) ÷ 52
= 1,011.6538 or $1,011.65 (rounded to the nearest cent).

SOP = (1,011.65 × 0.1) ÷ 0.08
= 1,264.5625 or $1,264 (ignoring cents).

As x is greater than WFT and less than SOP, WLA is calculated using formula (3):

WLA = (1,011.65 × 0.020) − ([1,200.99 − 1,011.65] × 0.0800)
= 5.0858 or $5.00 (rounded to the nearest dollar)

Example

Employee’s fortnightly earnings are $1,650.52 and the number of children claimed at question 12 is one. Scale 2 is applied.

Equivalent weekly earnings = $1,650.52 ÷ 2

= $825.26

x = 825.99

WFT = ([3,533 × 1] + 38,474) ÷ 52

= 807.8269 or $807.83 (rounded to the nearest cent).

SOP = (807.83 × 0.1) ÷ 0.08

= 1,009.7875 or $1,009 (ignoring cents).

As x is greater than WFT and less than SOP, formula (3) is used:

WLA = (807.83 × 0.020) − ([825.99 − 807.83] × 0.0800)

= 14.7038 or $15.00 (rounded to the nearest dollar).

The fortnightly levy adjustment is therefore $30.00 ($15.00 × 2)

Example

Employee’s monthly earnings are $2,800.33 and has a spouse but no children. Scale 2 is applied.

Equivalent weekly earnings = ($2,800.33 + 0.01) × 3 ÷ 13

= $646.23

x = 646.99

WFT = $739.88

As x is greater than $548 and less than WFT, formula (2) applies:

WLA = 646.99 × 0.0200 = 12.9398 or $13.00 (rounded to the nearest dollar).

The monthly adjustment is therefore $56.00 ($13.00 × 13 ÷ 3, rounded to the nearest dollar).

Example 1

Employee's weekly earnings are $1,103.45. Employee has completed a Tax file number declaration claiming the tax-free threshold. The employee has also provided a Medicare levy variation declaration with five children shown at question 12.

Therefore, scale 2 is applied.

x = 1,103.99

Weekly withholding amount (y)

= (a × x) − b

= (0.3477 × 1,103.99) − 186.2119

= 197.6454 or $198.00 (rounded to nearest dollar)

Levy adjustment: weekly earnings are greater than WFT ($1,079.60) and less than the SOP ($1,349) appropriate to an employee with five children. Formula (3) applies.

= (1,079.60 × 0.0200) – ([1,103.99 − 1,079.60] × 0.0800)

= 21.5920 − 1.9512

= 19.6408 or $20.00 (rounded to nearest dollar)

Net weekly withholding amount

$198.00 − $20.00 = $178.00

Example 2

Employee's fortnightly earnings are $1,110.30. Employee resides in zone B, has provided a Tax file number declaration that claims the tax-free threshold and a Withholding declaration that claims zone and tax offsets at the tax offsets questions that totals $1,645. The employee has also lodged a Medicare levy variation declaration claiming a full exemption from the Medicare levy.

Therefore, scale 5 is applied.

Convert to weekly equivalent

= (1,110.30 ÷ 2)

= 555.15 or $555 (ignore cents)

x = 555.99

Weekly withholding amount (y)

= (a × x) − b

= (0.1900 × 555.99) − 68.3462

= 37.2919 or $37.00 (rounded to nearest dollar)

Fortnightly withholding amount

$37.00 × 2 = $74.00

Tax offsets claimed at the tax offsets questions on the Withholding declaration

= 3.8% of $1,645

= 62.5100 or $63.00 (rounded to nearest dollar)

Net fortnightly withholding amount

$74.00 − $63.00 = $11.00.

Example 3

Employee's monthly earnings are $4,500.33. Employee has provided a Tax file number declaration claiming the tax-free threshold and claimed a total tax offset of $1,365 at the tax offsets question on the Withholding declaration. The employee has one child but is not eligible for a Medicare levy adjustment. The weekly equivalent of the employee’s earnings exceeds the Medicare levy SOP of $1,009 appropriate to an employee with one child.

Therefore, scale 2 is applied.

Convert to weekly equivalent

= ($4,500.33 + 0.01) × 3 ÷ 13

= 1,038.5400 or $1,038 (ignore cents)

x = 1,038.99

Weekly withholding amount (y)

= (a × x) − b

= (0.3477 × 1,038.99) − 186.2119

= 175.0449 or $175.00 (rounded to nearest dollar)

Monthly withholding amount

$175.00 × 13 ÷ 3 = $758.33 or $758.00 (rounded to nearest dollar)

Tax offset claimed

= 8.3% of $1,365

= 113.2950 or $113.00 (rounded to nearest dollar)

Net monthly withholding amount

$758.00 − $113.00 = $645.00