2022 Pay as you go (PAYG) withholding tax tables

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

The Federal Budget on 29 March 2022 did not result in any changes to tax rates or income thresholds for 2022-23 income year. The extension of the low and middle income tax offset to $1,500 is only claimable when individuals lodge their income tax return for the 2021-22 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 2022.

However, for the 2022–23 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 2022 is provided under 'Resource Attachments'.

Updates will also be made to the following schedule:

  • Schedule 15 – Tax table for working holiday makers (NAT 75331)

The rates of withholding and the income thresholds will not change for this schedule. The only change will be to the introductory content, with the inclusion of an additional visa (COVID-19 pandemic event 408 visa) that the schedule applies to.

Updated schedules and 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.

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'.

If you have any questions, contact us via Online services for DSPs.

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NAT 3539 (XLSX) 52.63 KB 9 May 2022
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