PAYG Tax Scales for Individual/Non Business (INB)
Australian individuals are classified under one of the following tax categories
based on the information provided in their Tax File Number Declaration form.
These tax scales are used to calculate the pay-as-you-go (PAYG) tax withholding for each pay.
Tax Scale 1: Tax free threshold not claimed
The first $6,000 in a financial year is not taxable for Australian residents. This is known
as the tax free threshold but it can only be claimed for one job at a time, that is, you
cannot claim it twice if you have a second job. If the tax free threshold is not claimed, use
this tax scale regardless of whether the employee is entitled to leave loading. You cannot claim
a medicare levy adjustment for this tax scale.
Prerequisites: Must be Australian resident, tax file number provided.
Tax scale 2: Tax free threshold claimed and is entitled to leave loading
If the employee is entitled to leave loading and is claiming the tax free threshold, use this
tax scale. You may be eligable for a medicare levy adjustment under this tax scale.
Prerequisites: Must be Australian resident, tax file number provided.
Tax scale 3: Tax free threshold claimed and is entitled to leave loading
Foreign residents are genarally subject to a higher tax rate but are not subject
to the medicare levy. Check with the Australian Taxation Office if you are an Australian
resident for taxation purposes. If you are a foreign resident and have provided a tax file
number, you must use this tax scale. Prerequisites: Foreign resident, tax file number provided.
Tax Scale 4: No Tax file number provided
If you do not provide your tax file number, you must be
taxed at the top marginal rate of 45% plus 1.5% medicare levy (Australian residents only).
No other tax scale can be supplied in this case. Note that the tax free threshold must be claimed in
order user this tax scale.
Tax Scale 5: Full Medicare Levy Exemption
If you satisfy the requirements under one of the Medicare categories (for example, you hold an exemption
certiciate from Medicare), you may be eligable for a full Medicare levy exemption. You first must complete a
Medicare levy variation form and be eliable for the full exemption. Note that the tax free threshold must be claimed in
order user this tax scale.
Tax Scale 6: Half Medicare Levy Exemption
You may be eligable for a half medicare levy exemption if you satify the requirements under Medicare.
You first must complete a medicare levy variation form and be eliable for a half exemption.
Tax Scale 7: Claiming tax free threshold with no leave loading
This is the most common tax scale for employees claiming the tax free threshold
on their primary job. Employees are not entitled to leave loading.
Prerequisites: Must be Australian resident, tax file number provided.
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Sunday, 5th Feb 2012
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