2021 Pay as you go (PAYG) withholding tax tables

Original Published Date
Tax Category
Resource Type
Statement of formula / rates and thresholds

The Federal Budget did not result in any changes to tax rates or income thresholds for 2021-22 income year. The extension of the low and middle income tax offset is only claimable when individuals lodge their income tax return. Therefore, there are no changes to Schedule 1 – Statement of formulas for calculating amounts to be withheld (NAT 1004) nor to the regular tax tables. The updates that were made on 13 October 2020 to schedule 1 and the regular tax tables will continue to apply to payments made from 1 July 2021.

For the 2021–22 income year we will be updating Schedule 8 – Statement of formulas for calculating study and training support loans components (NAT 3539) and study and training support loans weekly, fortnightly and monthly tax tables due to the annual indexing of the repayment income thresholds. The NAT 3539 output file that will apply from 1 July 2021 is provided under 'Resource Attachments'.

Updates will also be made to the following schedules:

  • Schedule 13 – Tax table for superannuation income streams (NAT 70982)
  • Schedule 4 – Tax table for return to work payments (NAT 3347)      

The rates of withholding will not change for these schedules. Changes will only be made in respect to the increase in the defined benefit income cap for schedule 13 and removal of the reference to the Medicare levy in schedule 4.

Updated schedules and tax tables will be published from mid-June at ato.gov.au/tax tables

Other important information

Due to the negative coefficient value in some of the formula scales, we understand that some software products may take longer to implement the changes. This will need to be factored into the formulas if your software products are affected. If you have any questions or need further support, contact us via Online services for DSPs.

Please note that we do not update the statement of formulas and regular tax tables to only accommodate the annual indexation of the Medicare levy thresholds. We factor in the Medicare levy threshold changes when we make changes to the tax tables due to changes to tax rates (including the Medicare Levy) and/or income thresholds. We don’t consider making changes to tax tables just for Medicare levy thresholds economical for employers, digital service providers and the ATO, as their effect on withholding is minimal. When individuals lodge their income tax return for the year the current Medicare levy thresholds will apply.

For a copy of the output file for Schedule 1 - Statement of formulas for calculating amounts to be withheld (NAT 1004) and other files that were updated in October 2020 where they still apply, refer to the 2020 version  of this page found under 'All versions'.

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NAT 3539 (XLSX) 53.74 KB 17 May 2021
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