Question 1

Which ATO rates does this use?

Accepted Answer

It applies the ATO Schedule 1 and Schedule 8 statements of formulas that apply to payments made from 1 July 2026, the same formulas behind the ATO tax tables and the tax withheld calculator in the ATO app.

Question 2

Why does the monthly amount not equal the weekly amount times four?

Accepted Answer

The ATO converts every pay cycle to a weekly equivalent, rounds the weekly figure to the nearest dollar, and only then scales it back. That rounding step is why monthly withholding is rarely a clean multiple of the weekly amount.

Question 3

What if the employee has not given me their tax file number?

Accepted Answer

Withholding jumps to a flat 47% for residents and 45% for foreign residents, and no study or training support loan amount is withheld. Switch off the tax file number option to see that result.

Question 4

Does this include the Medicare levy?

Accepted Answer

Yes. The standard scales already build in the Medicare levy. It does not apply Medicare levy adjustments for a spouse or dependants, or exemptions claimed on a Medicare levy variation declaration.

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