Work out the weekly withholding amount including a study and training support loan component

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 two 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 two 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 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
88	0.1900	0.1900
371	0.2348	3.9639
515	0.2190	-1.9003
554	0.3477	64.4297
693	0.3577	64.4297
756	0.3677	64.4297
822	0.3727	64.4297
893	0.3777	64.4297
932	0.3827	64.4297
967	0.3800	61.9132
1,046	0.3850	61.9132
1,130	0.3900	61.9132
1,219	0.3950	61.9132
1,313	0.4000	61.9132
1,413	0.4050	61.9132
1,519	0.4100	61.9132
1,631	0.4150	61.9132
1,750	0.4200	61.9132
1,874	0.4250	61.9132
1,957	0.4300	61.9132
2,010	0.4750	150.0093
2,151	0.4800	150.0093
2,301	0.4850	150.0093
3,111	0.4900	150.0093
3,111 & over	0.5700	398.9324

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
359	–	–
438	0.1900	68.3462
548	0.2900	112.1942
721	0.2100	68.3465
865	0.2190	74.8369
904	0.3477	186.2119
1,043	0.3577	186.2119
1,106	0.3677	186.2119
1,172	0.3727	186.2119
1,243	0.3777	186.2119
1,282	0.3827	186.2119
1,317	0.3800	182.7504
1,396	0.3850	182.7504
1,480	0.3900	182.7504
1,569	0.3950	182.7504
1,663	0.4000	182.7504
1,763	0.4050	182.7504
1,869	0.4100	182.7504
1,981	0.4150	182.7504
2,100	0.4200	182.7504
2,224	0.4250	182.7504
2,307	0.4300	182.7504
2,360	0.4750	286.5965
2,501	0.4800	286.5965
2,651	0.4850	286.5965
3,461	0.4900	286.5965
3,461 & over	0.5700	563.5196

Foreign residents – scale 3

With study and training support loans debt
Weekly earnings (x) less than $	a	b
904	0.3250	0.3250
1,043	0.3350	0.3250
1,106	0.3450	0.3250
1,172	0.3500	0.3250
1,243	0.3550	0.3250
1,317	0.3600	0.3250
1,396	0.3650	0.3250
1,480	0.3700	0.3250
1,569	0.3750	0.3250
1,663	0.3800	0.3250
1,763	0.3850	0.3250
1,869	0.3900	0.3250
1,981	0.3950	0.3250
2,100	0.4000	0.3250
2,224	0.4050	0.3250
2,307	0.4100	0.3250
2,360	0.4550	103.8462
2,501	0.4600	103.8462
2,651	0.4650	103.8462
3,461	0.4700	103.8462
3,461 & over	0.5500	380.7692

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
359	–	–
721	0.1900	68.3462
865	0.1990	74.8365
904	0.3277	186.2115
1,043	0.3377	186.2115
1,106	0.3477	186.2115
1,172	0.3527	186.2115
1,243	0.3577	186.2115
1,282	0.3627	186.2115
1,317	0.3600	182.7500
1,396	0.3650	182.7500
1,480	0.3700	182.7500
1,569	0.3750	182.7500
1,663	0.3800	182.7500
1,763	0.3850	182.7500
1,869	0.3900	182.7500
1,981	0.3950	182.7500
2,100	0.4000	182.7500
2,224	0.4050	182.7500
2,307	0.4100	182.7500
2,360	0.4550	286.5962
2,501	0.4600	286.5962
2,651	0.4650	286.5962
3,461	0.4700	286.5962
3,461 & over	0.5500	563.5192

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
359	–	–
721	0.1900	68.3462
739	0.1990	74.8365
865	0.2490	111.8308
904	0.3777	223.2058
924	0.3877	223.2058
1,043	0.3477	186.2119
1,106	0.3577	186.2119
1,172	0.3627	186.2119
1,243	0.3677	186.2119
1,282	0.3727	186.2119
1,317	0.3700	182.7504
1,396	0.3750	182.7504
1,480	0.3800	182.7504
1,569	0.3850	182.7504
1,663	0.3900	182.7504
1,763	0.3950	182.7504
1,869	0.4000	182.7504
1,981	0.4050	182.7504
2,100	0.4100	182.7504
2,224	0.4150	182.7504
2,307	0.4200	182.7504
2,360	0.4650	286.5965
2,501	0.4700	286.5965
2,651	0.4750	286.5965
3,461	0.4800	286.5965
3,461 & over	0.5600	563.5196

Notes:

Scale 1 contains a negative value for one of the b coefficients. This is intentional.

Withholding amounts including the study and training support loans component worked out using the coefficients may differ slightly from the sums of the amounts shown in the PAYG and study and training support loans tax tables. The differences result from the rounding of components. Withholding calculated using either method is accepted.