Академический Документы
Профессиональный Документы
Культура Документы
NAT 1006-05.2010
WHO SHOULD USE THIS TABLE? NO TFN PROVIDED
Use this table if you make any of the following payments on You must withhold at the top rate of tax plus the Medicare levy
a fortnightly basis: from a payment (ignoring any cents) if you make a payment to a
■ salary, wages, allowances and leave loading to employees payee and the payee has not:
■ paid parental leave to an eligible worker ■ quoted their TFN
■ director’s fees ■ claimed an exemption from quoting, or
■ salary and allowances to office holders (including Members ■ advised that they have applied for a TFN or have made an
of Parliament, statutory office holders, defence force enquiry with the ATO.
members and police officers) If a payee states at question 1 of the Tax file number declaration
■ payments to labour hire workers that they have lodged a Tax file number application or enquiry
■ payments to religious practitioners with the ATO, the payee has 28 days to give you their TFN.
■ Commonwealth education or training payments If the payee has not given you their TFN within 28 days, you
■ compensation, sickness or accident payments that are must withhold at the top rate of tax plus the Medicare levy from
calculated at a periodical rate and made because a person the total amount of all payments made to the payee (ignoring
is unable to work (unless the payment is made under an any cents) unless the ATO tells you not to.
insurance policy to the policy owner).
Do not allow for any tax offsets or Medicare levy
Also use this table for payments to foreign residents. adjustment. Do not add amounts for Higher Education
See page 3 for more information. Loan Program (HELP) or Student Financial Supplement
Scheme (SFSS).
Some payees (shearers, fruit and vegetable harvesters,
performing artists and those engaged on a daily or
casual basis) may be subject to different withholding WITHHOLDING DECLARATIONS
arrangements. There are also special arrangements for A payee may use a Withholding declaration to advise their
withholding from payments made under voluntary entitlement to a tax offset, which they choose to claim through
agreements. reduced withholding. See page 3 for more information.
For more information on other tax tables, see Payees can also use Withholding declarations to advise you of
‘PAYG withholding essentials’ at www.ato.gov.au changes to their situation since providing a valid Tax file number
declaration, which may affect the amount to be withheld from
their payments.
USING FORMULAS
Withholding amounts shown in this table can be expressed in Changes which may affect the amount to be withheld include:
a mathematical form. ■ becoming or ceasing to be an Australian resident for tax
If you have developed your own payroll software package, you purposes
will need to use the PAYG withholding – Statement of formulas ■ claiming or discontinuing a claim for the tax-free threshold
for calculating amounts to be withheld (NAT 1004). A copy of ■ advising of a HELP or SFSS debt, or changes to them
this schedule is available from www.ato.gov.au ■ entitlement to a senior Australians tax offset, and
■ upward variation to increase the rate or amount to be
WHEN THERE ARE 27 PAY PERIODS IN A withheld.
FINANCIAL YEAR A Withholding declaration takes effect from the first payment
In some years, you may pay your payees 27 times instead of you make after the payee has provided the declaration. A later
the usual 26. As this table is based on 26 pays, the extra pay declaration provided by a payee overrides an earlier declaration.
may result in insufficient amounts being withheld. Tell your
payees when this occurs so those who are concerned about a A valid Tax file number declaration (or Employment
shortfall can ask you to withhold the additional amounts shown declaration) must be in place before a payee can authorise
in the table below: you to vary their withholding by providing a Withholding
declaration.
Fortnightly earnings Additional withholding
$ $ MEDICARE LEVY ADJUSTMENT
1,390 to 3,049 10 To claim the Medicare levy adjustment available to some low
income earners with dependants, a payee must lodge a
3,050 to 6,849 17
Medicare levy variation declaration (NAT 0929) along with
6,850 & over 37 their Tax file number declaration.
Some payees may be liable for an increased rate of Medicare
TAX FILE NUMBER (TFN) DECLARATIONS levy or the Medicare levy surcharge as a result of new income
The answers payees provide on a Tax file number declaration tests. These payees can lodge a Medicare levy variation
(NAT 3092) primarily determine the amount to be withheld from declaration, requiring you to increase the amount to be
payments. A Tax file number declaration applies to payments withheld from payments you make to them.
made after the declaration is provided to you. A later declaration
provided by a payee overrides an earlier declaration. For instructions on how to work out the Medicare levy
adjustment, use the PAYG withholding – Medicare levy
If a payee does not give you a valid Tax file number declaration adjustment fortnightly tax table (NAT 1011).
within 14 days of starting a payer/payee relationship, you must
fill in a Tax file number declaration with all available details of the
ALLOWANCES
payee and send it to the Australian Taxation Office (ATO).
Generally, allowances are added to normal earnings and the
If you have Employment declarations that were valid at amount to be withheld is calculated on the total amount of
30 June 2000, they will continue to be valid under PAYG. earnings and allowances.
Refer to PAYG bulletin no 1 – Taxing of allowances for the
2000/01 and future income years.
2 SCHEDULE 3 FORTNIGHTLY TAX TABLE
FOREIGN RESIDENTS Payees who cease working for you
Foreign resident tax rates apply where a payee has answered Lump sum payments made when a payee ceases working for
‘NO’ to the question ‘Are you an Australian resident for tax you are not covered by this table.
purposes?’ on their Tax file number declaration.
If a payee has unused annual leave, leave loading or long
There are two ways to withhold from the earnings of a foreign service leave, see PAYG withholding – Tax table for unused
resident: leave payments on termination of employment (NAT 3351).
■ if the payee has not given you a valid TFN, you need to
Any other payments made may be employment termination
withhold at the top rate of tax for each $1 of earnings payments and you should refer to PAYG withholding – Tax table
(ignoring any cents), or for employment termination payments (NAT 70980).
■ if the payee has given you a valid TFN, withhold the amount
calculated from ‘Foreign resident tax rates’ below, rounding Do not withhold any amount for HELP or SFSS debts
any cents to the nearest dollar. from lump sum termination payments.
Do not add amounts for HELP or SFSS when no TFN has EXAMPLE
been provided.
A payee has fortnightly earnings of $987 and, if using
HOLIDAY PAY, LONG SERVICE LEAVE AND column 2, the amount to be withheld is $102.
EMPLOYMENT TERMINATION PAYMENTS The payee claims a tax offset entitlement of $1,000 on their
Payees who continue working for you Withholding declaration.
For withholding purposes you must include holiday pay Use the ‘Ready reckoner for tax offsets’ on page 4 to find
(including any leave loading) and long service leave payments the fortnightly value of $38.
as part of normal earnings, except when they are paid on
termination of employment. Payment for leave loading is subject The total amount to be withheld is worked out as follows:
to withholding if it exceeds the current threshold of $320. Only Amount to be withheld on $987 $102.00
that part of the payment which exceeds this threshold should
be subject to withholding, unless your payee asks you to Deduct fortnightly offset value $38.00
withhold from the full amount. Total amount to be withheld $64.00
Refer to PAYG withholding – calculation sheet – holiday and
long service leave payments for continuing employment
(Index No. 6209).
6 If the payee has advised you of a HELP or SFSS debt, add 6,001 to 37,000 15
the amount determined from the PAYG withholding – HELP 37,001 to 80,000 30
fortnightly tax table (NAT 2185) or PAYG withholding – SFSS
80,001 to 180,000 37
fortnightly tax table (NAT 3307) to the amount you calculated
in step 5. Greater than 180,000 45
If you use column 4 or foreign resident tax rates, or no TFN
has been provided, do not allow for any tax offsets or PAYG WITHHOLDING PUBLICATIONS
Medicare levy adjustment. All PAYG withholding tax tables and other PAYG publications
can be accessed quickly and easily from www.ato.gov.au
Copies of weekly and fortnightly tax tables are available
from most newsagents. Newsagents also hold copies of
the Tax file number declaration (NAT 3092) and the
Withholding declaration (NAT 3093).
If the exact tax offset amount claimed is not shown in the ready reckoner, add the values for an appropriate combination.
Example: Tax offsets of $422 claimed. Add values of $400, $20 and $2 = $15.00 + $1.00 + $0.00 = $16.00.
Therefore, reduce the amount to be withheld by $16.00.
Where the tax-free threshold is claimed with leave loading and the payee earns:
■ more than $5,000 but less than $6,910, withhold $1,468 plus 38.50 cents for each $1 of earnings in excess of $5,000
■ more than $6,909, withhold $2,204 plus 46.50 cents for each $1 of earnings in excess of $6,909.
Where the tax-free threshold is claimed with no leave loading and the payee earns:
■ more than $5,000 but less than $6,922, withhold $1,464 plus 38.50 cents for each $1 of earnings in excess of $5,000
■ more than $6,921, withhold $2,204 plus 46.50 cents for each $1 of earnings in excess of $6,921.
Where the tax-free threshold is not claimed and the payee earns:
■ more than $5,000 but less than $6,288, withhold $1,674 plus 38.50 cents for each $1 of earnings in excess of $5,000
■ more than $6,287, withhold $2,170 plus 46.50 cents for each $1 of earnings in excess of $6,287.
For all withholding amounts calculated, round the result to the nearest dollar.