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

Using this schedule

This schedule applies to payments made from 1 July 2024 to 30 June 2025.

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.

The coefficients in this schedule should be used together with Schedule 1 – Statement of formulas for calculating amounts to be withheld.

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)
• Australian Apprenticeship Support Loan (AASL) debt (formerly Trade Support Loan debt).

You can also use the:

• Tax withheld calculator to help you work out the correct amount of tax to withhold from payments to most employees
• Statement of formulas for calculating study and training support loans components (NAT 3539, PDF 476KB)This link will download a fileThis link will download a file, which you can download and print.

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 – 1,045.99	-
1,046.00 - 1,207.99	1.0
1,208.00 - 1,280.99	2.0
1,281.00 - 1,357.99	2.5
1,358.00 - 1,438.99	3.0
1,439.00 - 1,524.99	3.5
1,525.00 - 1,616.99	4.0
1,617.00 - 1,713.99	4.5
1,714.00 - 1,816.99	5.0
1,817.00 - 1,925.99	5.5
1,926.00 - 2,041.99	6.0
2,042.00 - 2,163.99	6.5
2,164.00 - 2,293.99	7.0
2,294.00 - 2,431.99	7.5
2,432.00 - 2,577.99	8.0
2,578.00 - 2,731.99	8.5
2,732.00 - 2,895.99	9.0
2,896.00 - 3,069.99	9.5
3,070.00 & over	10.0

No tax-free threshold claimed

Weekly earnings (x) $	Component rate (a) %
0 – 695.99	-
696.00 - 857.99	1.0
858.00 - 930.99	2.0
931.00 - 1,007.99	2.5
1,008.00 - 1,088.99	3.0
1,089.00 - 1,174.99	3.5
1,175.00 - 1,266.99	4.0
1,267.00 - 1,363.99	4.5
1,364.00 - 1,466.99	5.0
1,467.00 - 1,575.99	5.5
1,576.00 - 1,691.99	6.0
1,692.00 - 1,813.99	6.5
1,814.00 - 1,943.99	7.0
1,944.00 - 2,081.99	7.5
2,082.00 - 2,227.99	8.0
2,228.00 - 2,381.99	8.5
2,382.00 - 2,545.99	9.0
2,546.00 - 2,719.99	9.5
2,720.00 & 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
  • Australian Apprenticeship Support Loan (AASL) debt (- formerly Trade Support Loan 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
  • $1,046 or more if paid weekly
  • $2,092 or more if paid fortnightly
  • $4,532.67 or more if paid monthly
  • $13,598 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:

• $696 or more if paid weekly
• $1,392 or more if paid fortnightly
• $3,016.00 or more if paid monthly
• $9,048 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.

 

 

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 2 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 2 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 Schedule 1 – 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
150	0.1600	0.1600
371	0.2117	7.7550
515	0.1890	-0.6702
696	0.3227	68.2367
858	0.3327	68.2367
931	0.3427	68.2367
1,008	0.3450	65.7202
1,089	0.3500	65.7202
1,175	0.3550	65.7202
1,267	0.3600	65.7202
1,364	0.3650	65.7202
1,467	0.3700	65.7202
1,576	0.3750	65.7202
1,692	0.3800	65.7202
1,814	0.3850	65.7202
1,944	0.3900	65.7202
2,082	0.3950	65.7202
2,228	0.4000	65.7202
2,246	0.4050	65.7202
2,382	0.4750	222.9510
2,546	0.4800	222.9510
2,720	0.4850	222.9510
3,303	0.4900	222.9510
3,303 & over	0.5700	487.2587

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
361	-	-
500	0.1600	57.8462
625	0.2600	107.8462
721	0.1800	57.8462
865	0.1890	64.3365
1,046	0.3227	180.0385
1,208	0.3327	180.0385
1,281	0.3427	180.0385
1,358	0.3450	176.5769
1,439	0.3500	176.5769
1,525	0.3550	176.5769
1,617	0.3600	176.5769
1,714	0.3650	176.5769
1,817	0.3700	176.5769
1,926	0.3750	176.5769
2,042	0.3800	176.5769
2,164	0.3850	176.5769
2,294	0.3900	176.5769
2,432	0.3950	176.5769
2,578	0.4000	176.5769
2,596	0.4050	176.5769
2,732	0.4750	358.3077
2,896	0.4800	358.3077
3,070	0.4850	358.3077
3,653	0.4900	358.3077
3,653 & over	0.5700	650.6154

Foreign residents – scale 3

With study and training support loans debt

Weekly earnings (x) less than $	a	b
1,046	0.3000	0.3000
1,208	0.3100	0.3000
1,281	0.3200	0.3000
1,358	0.3250	0.3000
1,439	0.3300	0.3000
1,525	0.3350	0.3000
1,617	0.3400	0.3000
1,714	0.3450	0.3000
1,817	0.3500	0.3000
1,926	0.3550	0.3000
2,042	0.3600	0.3000
2,164	0.3650	0.3000
2,294	0.3700	0.3000
2,432	0.3750	0.3000
2,578	0.3800	0.3000
2,596	0.3850	0.3000
2,732	0.4550	181.7308
2,896	0.4600	181.7308
3,070	0.4650	181.7308
3,653	0.4700	181.7308
3,653 & over	0.5500	474.0385

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
361	-	-
721	0.1600	57.8462
865	0.1690	64.3365
1,046	0.3027	180.0385
1,208	0.3127	180.0385
1,281	0.3227	180.0385
1,358	0.3250	176.5769
1,439	0.3300	176.5769
1,525	0.3350	176.5769
1,617	0.3400	176.5769
1,714	0.3450	176.5769
1,817	0.3500	176.5769
1,926	0.3550	176.5769
2,042	0.3600	176.5769
2,164	0.3650	176.5769
2,294	0.3700	176.5769
2,432	0.3750	176.5769
2,578	0.3800	176.5769
2,596	0.3850	176.5769
2,732	0.4550	358.3077
2,896	0.4600	358.3077
3,070	0.4650	358.3077
3,653	0.4700	358.3077
3,653 & over	0.5500	650.6154

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
361	-	-
721	0.1600	57.8462
843	0.1690	64.3365
865	0.2190	106.4962
1,046	0.3527	222.1981
1,053	0.3627	222.1981
1,208	0.3227	180.0385
1,281	0.3327	180.0385
1,358	0.3350	176.5769
1,439	0.3400	176.5769
1,525	0.3450	176.5769
1,617	0.3500	176.5769
1,714	0.3550	176.5769
1,817	0.3600	176.5769
1,926	0.3650	176.5769
2,042	0.3700	176.5769
2,164	0.3750	176.5769
2,294	0.3800	176.5769
2,432	0.3850	176.5769
2,578	0.3900	176.5769
2,596	0.3950	176.5769
2,732	0.4650	358.3077
2,896	0.4700	358.3077
3,070	0.4750	358.3077
3,653	0.4800	358.3077
3,653 & over	0.5600	650.6154

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:

• Tax tables
• PAYG withholding.