Coefficients to use in formulas for withholding from weekly payments

If the payee didn't claim the tax-free threshold

If the tax-free threshold isn't claimed in Tax file number declaration – Scale 1

Weekly earnings (x)	a	b
Less than $188	0.1500	0.1500
Less than $371	0.2084	11.0185
Less than $515	0.1790	0.1066
Less than $932	0.3227	74.1674
Less than $2,246	0.3200	71.6508
Less than $3,303	0.3900	228.8816
$3,303 & over	0.4700	493.1893

If the payee claimed the tax-free threshold

If the tax-free threshold is claimed in Tax file number declaration – Scale 2

Weekly earnings (x)	a	b
Less than $362	–	–
Less than $538	0.1500	54.3462
Less than $673	0.2500	108.2135
Less than $721	0.1700	54.3473
Less than $865	0.1790	60.8377
Less than $1,282	0.3227	185.1935
Less than $2,596	0.3200	181.7319
Less than $3,653	0.3900	363.4627
$3,653 & over	0.4700	655.7704

Foreign residents – Scale 3

Weekly earnings (x)	a	b
Less than $2,596	0.3000	0.3000
Less than $3,653	0.3700	181.7308
$3,653 & over	0.4500	474.0385

If the payee didn't give a TFN

If a tax file number (TFN) was not provided by the payee– Scale 4

Earnings	Tax rate
Resident $1 & over	0.4700
Foreign resident $1 & over	0.4500

If the payee claims an exemption from Medicare levy

Full exemption

If the payee claimed the full exemption from Medicare levy in Medicare levy variation declaration – Scale 5

Weekly earnings (x)	a	b
Less than $362	–	–
Less than $721	0.1500	54.3462
Less than $865	0.1590	60.8365
Less than $1,282	0.3027	185.1923
Less than $2,596	0.3000	181.7308
Less than $3,653	0.3700	363.4615
$3,653 & over	0.4500	655.7692

Half exemption

If the payee claimed a half exemption from Medicare levy in Medicare levy variation declaration – Scale 6

Weekly earnings (x)	a	b
Less than $362	–	–
Less than $721	0.1500	54.3462
Less than $865	0.1590	60.8365
Less than $908	0.3027	185.1923
Less than $1,135	0.3527	230.6135
Less than $1,282	0.3127	185.1923
Less than $2,596	0.3100	181.7308
Less than $3,653	0.3800	363.4615
$3,653 & over	0.4600	655.7692

Notes on using the scales

27 fortnightly, or 53 weekly pays in the year

If you have 27 fortnightly or 53 weekly pays in a financial year, refer to When there are 27 and 53 pays in a financial year.

Using different scales

• Scales 1, 2, 3, 5 and 6 may be applied only if payees have provided their TFN.
• For scale 4, no coefficients are necessary. To calculate withholding, apply the tax rate to earnings, ignoring any cents in earnings and in the withholding result.
• Scales 1 and 2 apply whether or not the payee is entitled to any leave loading.
• Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
• Scales 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for resident payees only.
• For scale 2, no Medicare levy is payable by a person whose taxable income for the year is $28,011 ($538 per week) or less. If the taxable income exceeds $28,011 but is less than $35,013 ($673 per week), the levy is shaded in at the rate of 10% of the excess over $28,011 . If a person’s taxable income is $35,013 ($673 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
• The Medicare levy is also shaded in for scale 6. The Medicare levy parameters for scales 2 and 6 are as follows:

Medicare levy parameters

Parameter	Scale 2	Scale 6
Weekly earnings threshold	538	908
Weekly earnings shade-in threshold	673	1,135
Medicare levy family threshold	47,238	47,238
Weekly family threshold divisor	52	52
Additional child	4,338	4,338
Shading out point multiplier	0.1000	0.0500
Shading out point divisor	0.0800	0.0400
Weekly levy adjustment factor	538.6700	908.4200
Medicare levy	0.0200	0.0100