Coefficients for calculation of amounts to be withheld (withholding amounts) from weekly payments

Where the tax-free threshold is not claimed in Tax file number declaration – Scale 1

Weekly earnings (x) less than $	a	b
88	0.1900	0.1900
371	0.2348	3.9639
515	0.2190	−1.9003
932	0.3477	64.4297
1,957	0.3450	61.9132
3,111	0.3900	150.0093
3,111 & over	0.4700	398.9324

Where the employee claimed the tax-free threshold in Tax file number declaration – Scale 2

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
1,282	0.3477	186.2119
2,307	0.3450	182.7504
3,461	0.3900	286.5965
3,461 & over	0.4700	563.5196

Foreign residents – Scale 3

Weekly earnings (x) less than $	a	b
2,307	0.3250	0.3250
3,461	0.3700	103.8462
3,461 & over	0.4500	380.7692

Where a tax file number (TFN) was not provided by employee – Scale 4

Earnings	Tax rate
Resident $1 & over	0.4700
Foreign resident $1 & over	0.4500

Where the employee claimed the FULL exemption from Medicare levy in Medicare levy variation declaration – Scale 5

Weekly earnings (x) less than $	a	b
359	–	–
721	0.1900	68.3462
865	0.1990	74.8365
1,282	0.3277	186.2115
2,307	0.3250	182.7500
3,461	0.3700	286.5962
3,461 & over	0.4500	563.5192

Where the employee claimed the HALF exemption from Medicare levy in Medicare levy variation declaration – Scale 6

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
1,282	0.3377	186.2119
2,307	0.3350	182.7504
3,461	0.3800	286.5965
3,461 & over	0.4600	563.5196

Notes

1. Scale 1 contains a negative value for one of the b coefficients. This is intentional.
2. If you have 27 fortnightly, or 53 weekly pays in a financial year, refer to withholding additional amounts from employee earnings.
3. Scales 1, 2, 3, 5 and 6 may be applied only where employees have provided their TFN.
4. For scale 4 no coefficients are necessary. To calculate withholding, apply the tax rate to earnings, ignoring any cents in earnings and in the withholding result.
5. Scale 1 and 2 apply whether or not the employee is entitled to any leave loading.
6. Tax offsets may be allowed only where scales 2, 5 or 6 are applied.
7. Scale 1, 2, 4 and 6 incorporate the Medicare levy. Scale 4 incorporates the Medicare levy for residents only.
8. For scale 2 no Medicare levy is payable by a person whose taxable income for the year is $22,801 ($438 per week) or less. Where the taxable income exceeds $22,801 but is less than $28,501 ($548 per week), the levy is shaded in at the rate of 10% of the excess over $22,801. Where a person’s taxable income is $28,501 ($548 per week) or more, Medicare is levied at the rate of 2% of total taxable income.
9. The Medicare levy is also shaded in for scale 6. The Medicare levy parameters for scales 2 and 6 are as follows:

Medicare levy parameters

Parameter	Scale 2	Scale 6
Weekly earnings threshold	438	739
Weekly earnings shade-in threshold	548	924
Medicare levy family threshold	38,474	38,474
Weekly family threshold divisor	52	52
Additional child	3,533	3,533
Shading out point multiplier	0.1000	0.0500
Shading out point divisor	0.0800	0.0400
Weekly levy adjustment factor	438.4800	739.8800
Medicare levy	0.0200	0.0100