PAYG Tax Instalment Schedules For Employee wages and salaries
The required pay-as-you-go tax instalment deductions from employees’ wages and salaries in tax tables published by the Australian Taxation Office in downloadable PDF format.
ATO printed tax instalment tables
For the 2012-13 year are here: Printed Tax Tables (pdf downloads)
UPDATE – 1 JULY 2013: For the 2013-14 year tax withholding tables are here: Tax tables 2013-14
For the simple “regular” scenarios – a spreadsheet version..
The deduction formulae for the 2013 tax year and valid for 2013-14 entered into MS Excel spreadsheets (Windows version).(sorry Apple Mac version not supported at this stage).
The 2012-13 and continuing from 1 July 2013 onwards this tax instalment calculator contains Regular weekly, fortnightly, monthly and quarterly tax calculation options based on ATO Scales 1 to 6 for the most common scenarios including non-residents, and the ability to include offsets.
The spreadsheet calculator is $1.97 and you can get it here:
The calculator will be sent to you within 24 hours.
Why Are Tax Instalments Higher Than The Tax Rates?
One reason is the little safety buffer normally built into the tax instalment formulae by the Tax Office, which helps to cover a small amount of other income in your tax return, for example interest received. Most taxpayers with a simple tax return get a small refund in their tax assessment.
Another reason is that if you’re on a lower income, the Tax Instalment tables don’t take the full Low Income Tax Offset (“LITO”) into account. For 2012-13 you only get 18% of the LITO in each pay, and each year it’s a little less, so that by 2015-16 it will be ZERO. The technical details are here.