2020 Pay as you go (PAYG) withholding tax tables

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

Due to the economic impact of COVID-19, the Government delayed the Federal Budget until October 2020. As a result there are currently no changes to tax rates or income thresholds for 2020–21 income year. Therefore, the Statement of formulas (NAT 1004) and regular tax tables that applied from 1 July 2018 will continue to apply in the 2020/21 income year.

Furthermore, 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, software developers and the ATO, as their effect on withholding is minimal. Of course, when individuals lodge their income tax return for the year, the up-to-date Medicare levy thresholds will apply.

For the 2020–21 income year we will only 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 2020 is provided under “Resource Attachments”.

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

Update: the NAT 3539 output file ‘STSL component SD’ sheet now contains additional sample data when the tax-free threshold is being claimed or not.

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NAT 3539 (XLSX) 64.51 KB 19 Jun 2020
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