Professional Documents
Culture Documents
NAT 1005-05.2010
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 weekly 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).
Also use this table for payments to foreign residents. Do not allow for any tax offsets or Medicare levy
See page 3 for more information. adjustment. Do not add amounts for Higher Education
Loan Program (HELP) or Student Financial Supplement
Some payees (shearers, fruit and vegetable harvesters, Scheme (SFSS).
performing artists and those engaged on a daily or
casual basis) may be subject to different withholding WITHHOLDING DECLARATIONS
arrangements. A payee may use a Withholding declaration to advise their
entitlement to a tax offset, which they choose to claim through
There are also special arrangements for withholding from reduced withholding. See page 3 for more information.
payments made under voluntary agreements.
Payees can also use Withholding declarations to advise you of
For more information on other tax tables, see changes to their situation since providing a valid Tax file number
PAYG withholding essentials at www.ato.gov.au declaration, which may affect the amount to be withheld from
their payments.
USING FORMULAS Changes which may affect the amount to be withheld include:
Withholding amounts shown in this table can be expressed in ■ becoming or ceasing to be an Australian resident for
1,539 to 3,462 $454 plus 37 cents for each $1 of From 1 July 2010, the maximum amount of LITO will increase
earnings over $1,538 from $1,350 to $1,500.
additional amounts withheld from payments you make to them. ■ parent, spouse’s parent or invalid relative
A payee with a HELP or SFSS debt will notify you of this on ■ housekeeper, and
their Tax file number declaration or Withholding declaration. ■ child-housekeeper.
Use PAYG withholding – HELP weekly tax table (NAT 2173) Use the ‘Ready reckoner for tax offsets’ on page 4 to convert
to calculate additional withholding amounts for HELP debts. the payee’s annual tax offset entitlement into a weekly value.
Deduct this amount from the amount shown in column 2 or 3
Use PAYG withholding – SFSS weekly tax table (NAT 3306)
of the table beginning on page 5.
to calculate additional withholding amounts for SFSS debts.
Do not allow for any tax offsets if using column 4 or foreign
Do not add amounts for HELP or SFSS when no TFN has resident rates, or when no TFN has been provided.
been provided.
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 = $8.00 + $0.00 + $0.00 = $8.00.
Therefore, reduce the amount to be withheld by $8.00.
Where the tax-free threshold is claimed with leave loading and the payee earns:
■ more than $2,500 but less than $3,455, withhold $734 plus 38.50 cents for each $1 of earnings in excess of $2,500
■ more than $3,454, withhold $1,102 plus 46.50 cents for each $1 of earnings in excess of $3,454.
Where the tax-free threshold is claimed with no leave loading and the payee earns:
■ more than $2,500 but less than $3,461, withhold $732 plus 38.50 cents for each $1 of earnings in excess of $2,500
■ more than $3,460, withhold $1,102 plus 46.50 cents for each $1 of earnings in excess of $3,460.
Where the tax-free threshold is not claimed and the payee earns:
■ more than $2,500 but less than $3,144, withhold $837, plus 38.50 cents for each $1 of earnings in excess of $2,500
■ more than $3,143, withhold $1,085 plus 46.50 cents for each $1 of earnings in excess of $3,143.
For all withholding amounts calculated, round the result to the nearest dollar.