- To assist employers in withholding the correct amount of tax for the
2012/13 financial year, the Tax Office has now released the 2012/13 tax
withheld calculator (TWC).
- To use the TWC, employers will require various employee details,
including information provided on employee tax file number declaration,
withholding declaration and Medicare levy variation declaration forms.
- To use the TWC online, employers can choose from a number of calculators, including:
- Individual non business calculator;
- Labour hire calculator; and
- Voluntary agreement calculator.
- The associated Tax Office guide to the TWC and tax tables also clarifies how the TWC is used, including explanations on:
- Payee details;
- Medicare levy questions;
- HELP or SFSS debts;
- The display of results; and
- What happens when there are 53 weekly pays or 27 fortnightly pays in a financial year.
- The guide also provides information about the definition of
Australian resident, the Commissioner’s instalment rate (CIR), gross
earnings, what happens when a TFN is not provided and how the tax-free
threshold and various tax offsets are claimed.
- The TWC has been updated to reflect the ceasing of the temporary
flood and cyclone reconstruction levy (flood levy) from July 1, 2012.
- To access the TWC, click here.