🧾 PAYG Withholding Calculator

Calculate how much tax to withhold from employee wages under PAYG rules. For employers and contractors.

Employees should only claim at one job

What is PAYG withholding?

PAYG (Pay As You Go) withholding is the system where employers deduct tax from employee wages and send it to the ATO. Employees claim back any overpaid tax when they lodge their annual return.

Tax-free threshold: The first $18,200 earned per year is tax-free. Employees can only claim this at one job. If they work multiple jobs, they should only claim it at the higher-paying role.

No TFN: If an employee doesn't provide a TFN, you must withhold 47% of their pay (highest marginal rate). This is to encourage people to provide their TFN.