The coefficients in this schedule should be used together with the Statement of formulas for calculating amounts to be withheld.
Use this statement of formulas for payments made from 13 October 2020 to 30 June 2021.
This document is a withholding schedule 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.
Using this schedule
You should use this schedule if you develop your own payroll 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), or
- Trade Support Loan (TSL) debt.
See also:
- The Tax withheld calculator which can help you work out the correct amount of tax to withhold from payments to most employees.
- You can download a printable version of Statement of formulas for calculating study and training support loans components (PDF 184KB)This link will download a file.
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 software package, you can 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
Weekly earnings (x) |
Component rate (a) |
|---|---|
0 – 895.99 |
– |
896.00 – 1,034.99 |
1.0 |
1,035.00 – 1,096.99 |
2.0 |
1,097.00 – 1,162.99 |
2.5 |
1,163.00 – 1,231.99 |
3.0 |
1,232.00 – 1,305.99 |
3.5 |
1,306.00 – 1,384.99 |
4.0 |
1,385.00 – 1,467.99 |
4.5 |
1,468.00 – 1,555.99 |
5.0 |
1,556.00 – 1,648.99 |
5.5 |
1,649.00 – 1,747.99 |
6.0 |
1,748.00 – 1,852.99 |
6.5 |
1,853.00 – 1,964.99 |
7.0 |
1,965.00 – 2,081.99 |
7.5 |
2,082.00 – 2,204.99 |
8.0 |
2,205.00 – 2,339.99 |
8.5 |
2,340.00 – 2,479.99 |
9.0 |
2,480.00 – 2,628.99 |
9.5 |
2,629.00 & over |
10.0 |
Weekly earnings (x) |
Component rate (a) |
|---|---|
0 – 545.99 |
– |
546.00 – 684.99 |
1.0 |
685.00 – 746.99 |
2.0 |
747.00 – 812.99 |
2.5 |
813.00 – 881.99 |
3.0 |
882.00 – 955.99 |
3.5 |
956.00 – 1,034.99 |
4.0 |
1,035.00 – 1,117.99 |
4.5 |
1,118.00 – 1,205.99 |
5.0 |
1,206.00 – 1,298.99 |
5.5 |
1,299.00 – 1,397.99 |
6.0 |
1,398.00 – 1,502.99 |
6.5 |
1,503.00 – 1,614.99 |
7.0 |
1,615.00 – 1,731.99 |
7.5 |
1,732.00 – 1,854.99 |
8.0 |
1,855.00 – 1,989.99 |
8.5 |
1,990.00 – 2,129.99 |
9.0 |
2,130.00 – 2,278.99 |
9.5 |
2,279.00 & 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 two. 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 three 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 two
- 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 three 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.