Schemes: PAYG withholding as ATO coefficient scales — one scheme for tax-free threshold claimed (Scale 2) and one for not claimed (Scale 1; register each employee in the right one, per their TFN declaration). Both scales carry the official rows from the June 2026 withholding-schedules instrument (F2026L00716) effective 1 July 2026, with the earlier scales as prior versions. STSL repayments follow the marginal system in withholding from 24 September 2025 (15% of income over the threshold, 17% over the upper band). Superannuation Guarantee: 12% employer accrual, monthly cap from the quarterly maximum base.
What each employee provides
- TFN declaration answers: threshold claimed? STSL debt? — they decide the scheme registrations.
Worked example — $1,000 weekly, threshold claimed
Before 1 July 2026: 0.3227 × 1,000.99 − 180.0385 → $143. From 1 July 2026 (15% band): 0.3227 × 1,000.99 − 185.1935 → $138; without the threshold, Scale 1 gives $249. Super: $120 employer accrual. An $8,000-a-month earner ($96k/yr) with an STSL debt repays 15% of the $29,000 above the $67,000 threshold → $362.50/mo.
Limitations
The pre-July-2026 no-threshold version is a placeholder (the current Scale 1 is official data). Medicare-levy variations (reduced/exempt scales 5–6), STSL threshold indexation for 2026-27, and direct STP Phase 2 submission to the ATO are later phases; payroll tax by state is not seeded.