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Calculating withholding amounts for payments made on a daily or casual basis

Last updated 12 October 2020

The withholding amounts shown in the Tax table for daily and casual workers can be expressed in a mathematical form, using the formulas and coefficients provided.

To work out withholding amounts using the formulas:

  1. Multiply earnings (ignoring any cents) by five to work out the weekly equivalent. Add 99 cents to the result.
  2. Calculate the weekly amount by applying the coefficients at      
    • Scale 2 where an employee is claiming the tax-free threshold. (The employee must have claimed the tax-free threshold to use the Tax table for daily and casual workers.)
  3. Round the result to the nearest dollar.
  4. Divide this amount by five to convert it to the daily equivalent.
  5. Round the daily withholding amount to the nearest dollar.

Where the employee is entitled to the seniors and pensioners tax offset, replace with the appropriate coefficients from Tax table for seniors and pensioners.