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Schedule 2 – Tax table for individuals employed in the horticultural or shearing industry

Work out the tax to withhold from payments made to employees in the horticultural or shearing industry.

Last updated 16 June 2024

Using this schedule

This schedule is for payments made from 1 July 2024.

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 section 12-35 of Schedule 1 to the TAA.

Use this schedule if you make payments to individuals in the horticultural industry who:

  • work in any process associated with the production, cultivation or harvest of a horticultural crop
  • perform the process on the grower’s property
  • do not work for the same grower for a continuous period exceeding 6 months
  • have given you a valid Tax file number declaration and have claimed the tax-free threshold.

Use this schedule if you make payments to individuals in the shearing industry such as shearers, crutchers, wool classers, cooks, shed hands and pressers who:

  • have given you a valid Tax file number declaration (NAT 3092) and have claimed the tax-free threshold
  • do not work for the same employer for a continuous period exceeding 6 months.

For all other circumstances, use the relevant PAYG withholding weekly or fortnightly tax table.

You can also:

If you employ individuals under a working holiday makers visa, you must use the Schedule 15 – Tax table for working holiday makers.

If you employ individuals under a Seasonal Worker Programme, Pacific Labour Scheme or Pacific Australia Labour Mobility scheme, this schedule does not apply. Go to:

Working out the withholding amount

To work out the amount you need to withhold you must:

  1. Input your employee's total earnings (ignoring any cents) into the Withholding lookup tool (XLSX, 34KB)This link will download a file.
  2. Use the appropriate column to find the correct amount to withhold
    • column 2 if the resident employee has given you a TFN
    • column 3 if the resident employee has not given you a TFN
    • column 4 if the foreign resident employee has given you a TFN
    • column 5 if the foreign resident employee has not given you a TFN.

When using this schedule do not:

  • withhold an amount for Study and training support loans
  • adjust the withholding amount for a payee who is claiming a Medicare levy exemption or reduction, or a tax offset.

These adjustments do not apply to this schedule.

Example: working out the withholding amount

An employee has earnings of $231.50.

To work out the correct amount to withhold, ignore cents, input $231 into the Withholding lookup tool (XLSX, 34KB)This link will download a file.

If the employee is a:

  • resident employee and has given you a TFN, use column 2 to find the correct amount to withhold ($30)
  • resident employee and has not given you a TFN, use column 3 to find the correct amount to withhold ($108)
  • foreign employee and has given you a TFN, use column 4 to find the correct amount to withhold ($69)
  • foreign employee and has not given you a TFN, use column 5 to find the correct amount to withhold ($103).
End of example

Resident employees

The standard rate of withholding of 13% applies if an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding lookup tool (XLSX, 34KB)This link will download a file.

If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding lookup tool (XLSX, 34KB)This link will download a file.

When your employee is a foreign resident

If your employee has answered that they are a foreign resident for tax purposes on their Tax file number declaration, you will need to use the foreign resident tax rates.

There are 2 ways you can withhold from a foreign resident’s earnings:

Pay period

The rates in this schedule apply irrespective of the pay period.

Using a formula

The withholding amounts shown in this schedule can be expressed in mathematical form.

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

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

  • y is the amount to be withheld expressed in dollars
  • x is earnings for the pay period, ignoring any cents
  • a is the value of the coefficient as shown in Table A.
Table A: Resident or foreign resident rate

Has the employee provided their TFN?

Resident (a)

Foreign resident (a)

TFN provided

0.13

0.30

TFN not provided

0.47

0.45

Rounding of withholding amounts

The withholding amounts calculated as a result of applying the above formulas should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar. Do this rounding directly –do not make a preliminary rounding to the nearest cent. Where an employee has not provided a TFN, ignore any cents in the result.

Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for accuracy against the Withholding lookup tool (XLSX, 34KB)This link will download a file. The results obtained when using the coefficients in this schedule may differ slightly from the Withholding lookup tool. The differences result from the rounding of components. Withholding calculated using either method is accepted.

TFN declarations

The answers your employees provide on their Tax file number declaration determine the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.

If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer-employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents), if all of the following apply:

  • they have not quoted their TFN
  • they have not claimed an exemption from quoting their TFN
  • they have not advised you that they have applied for a TFN or have made an enquiry with us.

If an employee states at question 1 of the Tax file number declaration that they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

If the employee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.

Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for study and training support loans.

Varying your PAYG withholding

If your employee believes that, for their circumstances, the amount you withhold will be too much, they may apply to us for a variation to reduce the amount of withholding.

For more information, refer to Varying your PAYG withholding.

PAYG withholding publications

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

QC102417