2023 Pay as you go (PAYG) withholding tax tables

The Federal Budget on 9 May 2023 did not result in any changes to tax rates or income thresholds for the 2023-24 income year. The stage 3 legislated tax cuts don’t take effect until the 2024-25 income year. 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 2023.

However, for the 2023–24 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 2023 is provided under 'Resource Attachments'.

The updated schedule 8 and associated tax tables will be published from mid-June at ato.gov.au/tax tables

Other important information

We do not update the statement of formulas and regular tax tables to only accommodate the annual indexation of the Medicare levy thresholds. We only factor in the Medicare levy changes when we have to make changes to the tax tables due to changes to tax rates 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 up-to-date Medicare levy thresholds will apply.

When using Schedule 11 - Tax table for employment termination payments (NAT 70980), Schedule 12 - Tax table for superannuation lump sums (NAT 70981) or Schedule 13 - Tax table for superannuation income streams (NAT 70982), ensure you’re using the current cap or payment limit amount for the income year. Refer to Key super rates and thresholds for the latest:

• Life benefit termination payments ETP cap (Table 17)
• Death benefit termination payments ETP cap (Table 18)
• Genuine redundancy and early retirement scheme payment limits (Table 20)
• Low rate cap amount (Table 9)
• Untaxed plan cap amount (Table 10)
• General transfer balance cap (Table 25)
• Defined benefit income cap (Table 26)

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'.