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# Schedule 8 – Statement of formulas for calculating study and training support loans components

Calculate the amount to withhold from payments to employees who have a study and training support loan.

Last updated 14 June 2023

This withholding schedule is made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by Subdivisions 12-B (except sections 12-50 and 12-55), 12-C (except sections 12-85 and 12-90) and 12-D of Schedule 1 to the TAA.

## Using this schedule

This schedule applies to payments made from 1 July 2023 to 30 June 2024.

The coefficients in this schedule should be used together with the Statement of formulas for calculating amounts to be withheld.

You should use this schedule if you develop your own payroll or accounting software package. Formulas and coefficients are used for calculating weekly withholding amounts for employees who have a:

• Higher Education Loan Program (HELP) debt
• VET Student Loan (VSL) debt
• Financial Supplement (FS) debt
• Student Start-up Loan (SSL) debt (includes ABSTUDY SSL debts), or
• Trade Support Loan (TSL) debt.

You can also use the:

## Using a formula

The withholding amounts for employees who have a study and training support loans debt can be expressed in a mathematical form.

If you have developed your own payroll or accounting software package, use the formulas and component rates outlined below.

The formulas comprise linear equations of the form y = ax, where:

• y is the weekly study and training support loans component
• x is the weekly earnings – or weekly equivalent of earnings – rounded down to whole dollars plus 99 cents
• a is the value of the component rate as shown in the following tables.

### Study and training support loans component rates

Tax-free threshold claimed or foreign resident

Weekly earnings (x)
\$

Component rate (a)
%

0 – 990.99

-

991.00 – 1,143.99

1.0

1,144.00 – 1,212.99

2.0

1,213.00 – 1,285.99

2.5

1,286.00 – 1,362.99

3.0

1,363.00 – 1,444.99

3.5

1,445.00 – 1,530.99

4.0

1,531.00 – 1,622.99

4.5

1,623.00 – 1,720.99

5.0

1,721.00 – 1,823.99

5.5

1,824.00 – 1,932.99

6.0

1,933.00 – 2,048.99

6.5

2,049.00 – 2,171.99

7.0

2,172.00 – 2,302.99

7.5

2,303.00 – 2,440.99

8.0

2,441.00 – 2,586.99

8.5

2,587.00 – 2,742.99

9.0

2,743.00 – 2,906.99

9.5

2,907.00 and over

10.0

No tax-free threshold claimed

Weekly earnings (x)
\$

Component rate (a)
%

0 – 640.99

-

641.00 – 793.99

1.0

794.00 – 862.99

2.0

863.00 – 935.99

2.5

936.00 – 1,012.99

3.0

1,013.00 – 1,094.99

3.5

1,095.00 – 1,180.99

4.0

1,181.00 – 1,272.99

4.5

1,273.00 – 1,370.99

5.0

1,371.00 – 1,473.99

5.5

1,474.00 – 1,582.99

6.0

1,583.00 – 1,698.99

6.5

1,699.00 – 1,821.99

7.0

1,822.00 – 1,952.99

7.5

1,953.00 – 2,090.99

8.0

2,091.00 – 2,236.99

8.5

2,237.00 – 2,392.99

9.0

2,393.00 – 2,556.99

9.5

2,557.00 and over

10.0

## Calculating fortnightly, monthly or quarterly withholding amounts

First calculate the weekly equivalent of fortnightly, monthly or quarterly earnings. If you pay:

• fortnightly – divide the sum of the fortnightly earnings and the amount of any allowances subject to withholding by 2. Ignore any cents in the result and then add 99 cents
• monthly – obtain the sum of the monthly earnings and the amount of any allowances subject to withholding (if the result is an amount ending in 33 cents, add one cent). Multiply this amount by 3 and then divide by 13. Ignore any cents in the result and then add 99 cents
• quarterly – divide the sum of the quarterly earnings and the amount of any allowances subject to withholding by 13. Ignore any cents in the result and then add 99 cents.

Then calculate fortnightly, monthly or quarterly withholding amounts as follows:

• fortnightly – determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by 2
• monthly – determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by 13, divide the product by 3 and round the result to the nearest dollar
• quarterly – determine the rounded weekly withholding amount applicable to the weekly equivalent of earnings before any adjustment for tax offsets. Multiply this amount by 13.

## When to work out the study and training support loans component

You will need to calculate the study and training support loans component when your employee has given you a Tax file number declaration or Withholding declaration and has:

• answered yes to the question on whether they have a
• Higher Education Loan Program (HELP) debt
• VET Student Loan (VSL) debt
• Financial Supplement (FS) debt
• Student Start-up Loan (SSL) debt (including ABSTUDY SSL debts) or
• Trade Support Loan (TSL) debt
• not completed a Medicare levy variation declaration claiming a reduction or exemption in the Medicare levy for having a spouse or dependants and low family income
• claimed the tax-free threshold or is a foreign resident with earnings of one of the following
• \$991 or more if paid weekly
• \$1,982 or more if paid fortnightly
• \$4,294.33 or more if paid monthly
• \$12,883 or more if paid quarterly.

If your employee has not claimed the tax-free threshold, the study and training support loans component is calculated on earnings of:

• \$641 or more if paid weekly
• \$1,282 or more if paid fortnightly
• \$2,777.67 or more if paid monthly
• \$8,333 or more if paid quarterly.

You must withhold the study and training support loans component from all your employee's earnings, including taxable allowances, bonuses and commissions.

Example 1: weekly earnings

Employee has claimed the tax-free threshold and has weekly earnings of \$1,095.84.

• STSL component = \$1,095.99 × 1% = \$11.00 rounded to the nearest dollar.
End of example

Example 2: fortnightly earnings

Employee has claimed the tax-free threshold and has fortnightly earnings of \$2,355.78.

• Weekly equivalent of \$2,355.78 = \$1,177.99 (\$2,355.78 ÷ 2, ignoring cents and adding 99 cents).
• Weekly STSL component = \$1,177.99 × 2% = \$24.00 rounded to the nearest dollar.
• Fortnightly STSL component = \$48.00 (\$24.00 × 2).
End of example

Example 3: monthly earnings

Employee has claimed the tax-free threshold and has monthly earnings of \$5,488.45.

• Weekly equivalent of \$5,488.45 = \$1,266.99.
(\$5,488.45 × 3 ÷ 13, ignoring cents and adding 99 cents).
• Weekly STSL component = \$1,266.99 × 2.5% = \$32.00 rounded to the nearest dollar.
• Monthly STSL component = \$139.00 (\$32.00 × 13 ÷ 3, rounded to the nearest dollar).
End of example

Do not withhold any amount for study and training support loans debts from lump sum termination payments.

## Coefficients to work out the weekly amounts to withhold

Your employee’s total withholding, including the study and training support loans component, can be calculated using the formula and coefficients stated below.

### Using a formula

The formulas comprise linear equations of the form y = ax − b, where:

• y is the weekly withholding amount expressed in dollars
• x is the number of whole dollars in the weekly earnings plus 99 cents
• a and b are the values of the coefficients for each set of formulas for each range of weekly earnings (or, in the case of fortnightly, monthly or quarterly earnings, the weekly equivalent of these amounts).

If two employees are taxed using a particular scale (for example, scale 2) but only one of them has a study and training support loans debt, you will need to set up two separate scales in your payroll system. One scale will need to incorporate the study and training support loans component and one will not – for example, name one ‘scale 2’ and the other ‘scale 22’.

The study and training support loans component does not apply if the employee has not provided a tax file number (TFN).

For scales without the study and training support loans component, refer to Statement of formulas for calculating amounts to be withheld.

### Where tax-free threshold not claimed in Tax file number declaration – scale 1

With study and training support loans debt

Weekly earnings
(x) less than
\$

a

b

88

0.1900

0.1900

371

0.2348

3.9639

515

0.2190

-1.9003

641

0.3477

64.4297

794

0.3577

64.4297

863

0.3677

64.4297

932

0.3727

64.4297

936

0.3700

61.9132

1,013

0.3750

61.9132

1,095

0.3800

61.9132

1,181

0.3850

61.9132

1,273

0.3900

61.9132

1,371

0.3950

61.9132

1,474

0.4000

61.9132

1,583

0.4050

61.9132

1,699

0.4100

61.9132

1,822

0.4150

61.9132

1,953

0.4200

61.9132

1,957

0.4250

61.9132

2,091

0.4700

150.0093

2,237

0.4750

150.0093

2,393

0.4800

150.0093

2,557

0.4850

150.0093

3,111

0.4900

150.0093

3,111 and over

0.5700

398.9324

Note: Scale 1 contains a negative value for one of the 'b' coefficients. This is intentional.

### Where employee has claimed the tax-free threshold in Tax file number declaration – scale 2

With study and training support loans debt

Weekly earnings
(x) less than
\$

a

b

359

-

-

438

0.1900

68.3462

548

0.2900

112.1942

721

0.2100

68.3465

865

0.2190

74.8369

991

0.3477

186.2119

1,144

0.3577

186.2119

1,213

0.3677

186.2119

1,282

0.3727

186.2119

1,286

0.3700

182.7504

1,363

0.3750

182.7504

1,445

0.3800

182.7504

1,531

0.3850

182.7504

1,623

0.3900

182.7504

1,721

0.3950

182.7504

1,824

0.4000

182.7504

1,933

0.4050

182.7504

2,049

0.4100

182.7504

2,172

0.4150

182.7504

2,303

0.4200

182.7504

2,307

0.4250

182.7504

2,441

0.4700

286.5965

2,587

0.4750

286.5965

2,743

0.4800

286.5965

2,907

0.4850

286.5965

3,461

0.4900

286.5965

3,461 and over

0.5700

563.5196

### Foreign residents – scale 3

With study and training support loans debt

Weekly earnings
(x) less than
\$

a

b

991

0.3250

0.3250

1,144

0.3350

0.3250

1,213

0.3450

0.3250

1,286

0.3500

0.3250

1,363

0.3550

0.3250

1,445

0.3600

0.3250

1,531

0.3650

0.3250

1,623

0.3700

0.3250

1,721

0.3750

0.3250

1,824

0.3800

0.3250

1,933

0.3850

0.3250

2,049

0.3900

0.3250

2,172

0.3950

0.3250

2,303

0.4000

0.3250

2,307

0.4050

0.3250

2,441

0.4500

103.8462

2,587

0.4550

103.8462

2,743

0.4600

103.8462

2,907

0.4650

103.8462

3,461

0.4700

103.8462

3,461 and over

0.5500

380.7692

### Where employee claimed FULL exemption from Medicare levy in Medicare levy variation declaration – scale 5

With study and training support loans debt

Weekly earnings
(x) less than
\$

a

b

359

-

-

721

0.1900

68.3462

865

0.1990

74.8365

991

0.3277

186.2115

1,144

0.3377

186.2115

1,213

0.3477

186.2115

1,282

0.3527

186.2115

1,286

0.3500

182.7500

1,363

0.3550

182.7500

1,445

0.3600

182.7500

1,531

0.3650

182.7500

1,623

0.3700

182.7500

1,721

0.3750

182.7500

1,824

0.3800

182.7500

1,933

0.3850

182.7500

2,049

0.3900

182.7500

2,172

0.3950

182.7500

2,303

0.4000

182.7500

2,307

0.4050

182.7500

2,441

0.4500

286.5962

2,587

0.4550

286.5962

2,743

0.4600

286.5962

2,907

0.4650

286.5962

3,461

0.4700

286.5962

3,461 and over

0.5500

563.5192

### Where employee claimed HALF exemption from Medicare levy in Medicare levy variation declaration – scale 6

With study and training support loans debt

Weekly earnings
(x) less than
\$

a

b

359

-

-

721

0.1900

68.3462

739

0.1990

74.8365

865

0.2490

111.8308

924

0.3777

223.2058

991

0.3377

186.2119

1,144

0.3477

186.2119

1,213

0.3577

186.2119

1,282

0.3627

186.2119

1,286

0.3600

182.7504

1,363

0.3650

182.7504

1,445

0.3700

182.7504

1,531

0.3750

182.7504

1,623

0.3800

182.7504

1,721

0.3850

182.7504

1,824

0.3900

182.7504

1,933

0.3950

182.7504

2,049

0.4000

182.7504

2,172

0.4050

182.7504

2,303

0.4100

182.7504

2,307

0.4150

182.7504

2,441

0.4600

286.5965

2,587

0.4650

286.5965

2,743

0.4700

286.5965

2,907

0.4750

286.5965

3,461

0.4800

286.5965

3,461 and over

0.5600

563.5196

Note: Withholding amounts including the study and training support loans component worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG and study and training support loans tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.

## Rounding of withholding amounts

Withholding amounts calculated as a result of applying the formulas are rounded to the nearest dollar. Values ending in 50 cents are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.

## Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for accuracy against the sample data provided at Tax tables. The results obtained when using the coefficients in this schedule may differ slightly from the sums of the amounts shown in the pay as you go (PAYG) tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.

## PAYG withholding publications

You can access all PAYG withholding tax tables and other PAYG withholding publications at:

QC72739