Schedule 9 – Tax table for seniors and pensioners

Using this schedule

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 Subdivisions 12-B (except sections 12-50 and 12-55), and 12-D of Schedule 1 to the TAA.

Use this schedule if you make payments to:

• seniors and pensioners who, at the end of the relevant financial year, are 67 years of age or older (for example, to be eligible for the year ending 30 June 2025, a payee must be born on or before 30 June 1958)
• veterans receiving a service pension and/or war widows/widowers receiving an income support supplement from the Department of Veterans’ Affairs who are at least 60 years of age.

This schedule applies to weekly payments including:

• salary, wages, allowances and leave loading paid to employees
• director’s fees
• payments to labour-hire workers
• compensation, sickness or accident payments that are calculated at a periodical rate and made because a person is unable to work (unless the payment is made under an insurance policy to the policy owner)
• a non-super income stream
• a super income stream.

This schedule can only apply if the payee has provided you with either:

• a Withholding declaration indicating that they are an Australian resident for tax purposes at question 4 and answered 'yes' to questions 5 and 8
• a Withholding declaration – short version for seniors and pensioners indicating that they are an Australian resident for tax purposes at question 4 and answered 'yes' to questions 5 and 6.

You can also:

• use the Withholding lookup tool (XLSX, 34KB)This link will download a fileThis link will download a file to quickly work out the amount to withhold
• download a printable version of Schedule 9 – Tax table for seniors and pensioners (NAT 4466, PDF 1.0MB)This link will download a fileThis link will download a file.

For super income stream payments, you must also use Schedule 13 – Tax table for superannuation income streams to calculate withholding.

Working out the withholding amount

To work out the withholding amount:

1. Calculate your payee's total weekly earnings, add any allowances and irregular payments that will be included in this week’s pay to the normal weekly earnings, ignoring any cents.
2. Using the applicable tab in the Withholding lookup tool (XLSX, 34KB)This link will download a file, input the amount from step 1 as per instructions in the tool.
3. Use the appropriate column to find the correct amount to withhold. If your payee is
   • single, use column 2
   • a member of an illness-separated couple, use column 3
   • a member of a couple, use column 4.
4. If your payee is entitled to a tax offset or a Medicare levy adjustment, subtract its weekly value from the withholding amount found in step 3.

Calculating fortnightly or monthly withholding amounts

First calculate the weekly equivalent of fortnightly or monthly 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.

Then calculate fortnightly or monthly withholding amounts as follows:

• fortnightly – work out the rounded weekly withholding amount applicable to the weekly equivalent of earnings, before any adjustment for tax offsets. Multiply this amount by 2
• monthly – work out 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.

Using a formula

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

You should read this section with Schedule 1 – Statement of formulas for calculating amounts to be withheld.

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

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

• y is the withholding amount expressed in dollars
• x is the weekly earnings rounded down to whole dollars plus 99 cents
• a and b are the values of the coefficients for the formulas shown in the relevant Values of the coefficients a and b for each set of formulasThis link will download a file tables.
• Note: Additional scales have been provided where the payee has claimed a FULL or HALF Medicare levy exemption.

Values of the coefficients a and b for each set of formulas

Scale 1 – Payee is single:

Weekly earnings (x) less than	a	b
$629	-	-
$671	0.1600	100.7308
$721	0.2850	184.6707
$790	0.2940	191.1611
$865	0.3940	270.1784
$987	0.5277	385.8803
$1,014	0.4477	306.8630
$1,282	0.3227	180.0385
$2,596	0.3200	176.5769
$3,653	0.3900	358.3077
$3,653 & over	0.4700	650.6154

Scale 2 – Payee is a member of an illness-separated couple:

Weekly earnings (x) less than	a	b
$606	-	-
$648	0.1600	97.0769
$721	0.2850	178.1635
$790	0.2940	184.6538
$865	0.3940	263.6712
$962	0.5277	379.3731
$987	0.4027	259.0558
$1,282	0.3227	180.0385
$2,596	0.3200	176.5769
$3,653	0.3900	358.3077
$3,653 & over	0.4700	650.6154

Scale 3 – Payee is a member of a couple:

Weekly earnings (x) less than	a	b
$554	-	-
$596	0.1600	88.6538
$721	0.2850	163.1587
$790	0.2940	169.6490
$842	0.3940	248.6663
$865	0.2690	143.3538
$987	0.4027	259.0558
$1,282	0.3227	180.0385
$2,596	0.3200	176.5769
$3,653	0.3900	358.3077
$3,653 & over	0.4700	650.6154

Scale 4 – Payee is single and is claiming a FULL Medicare levy exemption:

Weekly earnings (x) less than	a	b
$629	-	-
$671	0.1600	100.7308
$721	0.2850	184.6707
$865	0.2940	191.1611
$1,014	0.4277	306.8630
$1,282	0.3027	180.0385
$2,596	0.3000	176.5769
$3,653	0.3700	358.3077
$3,653 & over	0.4500	650.6154

Scale 5 – Payee is a member of an illness-separated couple and is claiming a FULL Medicare levy exemption:

Weekly earnings (x) less than	a	b
$606	-	-
$648	0.1600	97.0769
$721	0.2850	178.1635
$865	0.2940	184.6538
$962	0.4277	300.3558
$1,282	0.3027	180.0385
$2,596	0.3000	176.5769
$3,653	0.3700	358.3077
$3,653 & over	0.4500	650.6154

Scale 6 – Payee is a member of a couple and is claiming a FULL Medicare levy exemption:

Weekly earnings (x) less than	a	b
$554	-	-
$596	0.1600	88.6538
$721	0.2850	163.1587
$842	0.2940	169.6490
$865	0.1690	64.3365
$1,282	0.3027	180.0385
$2,596	0.3000	176.5769
$3,653	0.3700	358.3077
$3,653 & over	0.4500	650.6154

Scale 7 – Payee is single and is claiming a HALF Medicare levy exemption:

Weekly earnings (x) less than	a	b
$629	-	-
$671	0.1600	100.7308
$721	0.2850	184.6707
$865	0.2940	191.1611
$1,014	0.4277	306.8630
$1,099	0.3027	180.0385
$1,282	0.3527	235.0365
$1,374	0.3500	231.5750
$2,596	0.3100	176.5769
$3,653	0.3800	358.3077
$3,653 & over	0.4600	650.6154

Scale 8 – Payee is a member of an illness-separated couple and is claiming a HALF Medicare levy exemption:

Weekly earnings (x) less than	a	b
$606	-	-
$648	0.1600	97.0769
$721	0.2850	178.1635
$865	0.2940	184.6538
$962	0.4277	300.3558
$1,099	0.3027	180.0385
$1,282	0.3527	235.0365
$1,374	0.3500	231.5750
$2,596	0.3100	176.5769
$3,653	0.3800	358.3077
$3,653 & over	0.4600	650.6154

Scale 9 – Payee is a member of a couple and is claiming a HALF Medicare levy exemption:

Weekly earnings (x) less than	a	b
$554	-	-
$596	0.1600	88.6538
$721	0.2850	163.1587
$842	0.2940	169.6490
$865	0.1690	64.3365
$1,099	0.3027	180.0385
$1,282	0.3527	235.0365
$1,374	0.3500	231.5750
$2,596	0.3100	176.5769
$3,653	0.3800	358.3077
$3,653 & over	0.4600	650.6154

Medicare levy parameters

	With Medicare levy	Half Medicare levy
Weekly earnings threshold	790	1,099
Weekly earnings shade-in threshold	987	1,374
Medicare levy family threshold	57,198	57,198
Weekly family threshold divisor	52	52
Additional child	4,027	4,027
Shading out point multiplier	0.1000	0.0500
Shading out point divisor	0.0800	0.0400
Weekly levy adjustment factor	790.1700	1,099.9600
Medicare levy	0.0200	0.0100

Rounding of withholding amounts

Withholding amounts calculated as a result of applying the formulas are rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.

If no TFN is provided, ignore cents when you calculate withholding amounts.

Software

Payroll or accounting software written in accordance with the formulas in this schedule should be tested for accuracy against the withholding amounts obtained using the Withholding lookup tool (XLSX, 34KB)This link will download a file. You should only use such software if it produces the exact amounts.

TFN declarations

The answers your payees 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 a payee, it will override the previous one.

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

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident payee and 45% from a foreign resident payee (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 a payee states at question 1 of the Tax file number declaration 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 payee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident payee and 45% from a foreign resident payee (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.

When your payee has a study and training support loan debt

If your payee has a HELP, VSL, FS, SSL or AASL debt, you may need to withhold additional amounts from their payments. Your payee will need to notify you of this on their Tax file number declaration or Withholding declaration.

To calculate additional withholding amounts for HELP, VSL, FS, SSL or AASL debts, refer to Study and training support loans weekly tax table.

Allowances

Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

For more information on when to withhold and report on allowances, refer to Withholding for allowances.

Leave loading

If you pay leave loading as a lump sum, you need to use Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.

If you pay leave loading on a pro-rata basis, add the leave loading payment to the earnings for that period to calculate withholding.

Withholding declarations

A payee can use the Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding. For more information on tax offsets, refer to Claiming tax offsetsThis link will download a file.

Payees can also use a Withholding declaration to advise you of changes to their situation that may vary the amount you need to withhold.

Changes that may affect the amount you need to withhold include:

• becoming or ceasing to be an Australian resident for tax purposes
• claiming or discontinuing a claim for the tax-free threshold
• advising of a HELP, VSL, FS, SSL or AASL debt (or changes to them)
• entitlement to a seniors and pensioners tax offset.

When your payee provides you with a Withholding declaration, it will take effect from the next payment you make. If you receive an updated declaration from a payee, it will replace the previous one.

A payee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.

Claiming tax offsets

The seniors and pensioners tax offset (SAPTO) is incorporated into this schedule. If your payee chooses to claim their entitlement to other tax offsets through reduced withholding, they must give you a Withholding declaration.

To work out your payee's annual tax offset entitlement into a weekly value, use the Ready reckoner for tax offsets. Deduct this amount from the amount shown in column 2, 3 or 4 of the applicable tab in the Withholding lookup tool (XLSX, 34KB)This link will download a file.

Ready reckoner for tax offsets

Tax offset entitlement – weekly value

Amount claimed $	Weekly value $
1	–
2	–
3	–
4	–
5	–
6	–
7	–
8	–
9	–
10	–
20	–
30	1
40	1
50	1
57	1
60	1
70	1
80	2
90	2
100	2
200	4
300	6
338	6
400	8
500	10
600	11
700	13
800	15
900	17
1,000	19
1,173	22
1,200	23
1,400	27
1,600	30
1,800	34
2,000	38
2,200	42
2,400	46
2,600	49
2,800	53
3,000	57
3,200	61
3,400	65
3,600	68
3,800	72
4,000	76

If the exact tax offset amount claimed is not shown in the ready reckoner, add the values for an appropriate combination.

Medicare levy exemptions

To claim the Medicare levy FULL or HALF exemption, a payee must lodge a Medicare levy variation declaration with their Tax file number declaration.

If using the formulas to calculate withholding, use the applicable scale where the payee has claimed a FULL or HALF Medicare levy exemption. If using the Withholding lookup tool (XLSX, 34KB)This link will download a file, choose the tab applicable to FULL or HALF Medicare levy exemption.

Medicare levy adjustments

To claim the Medicare levy adjustment (available to some low income earners with dependants), a payee must lodge a Medicare levy variation declaration with their Tax file number declaration.

For instructions on how to work out the Medicare levy adjustment, refer to Medicare levy adjustment weekly tax table.

PAYG withholding publications

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

• Tax tables
• PAYG withholding.