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How to Use a Weekly Tax Table for Your Business (2025 Guide)
GST, Managing a Business

How to Use a Weekly Tax Table for Your Business (2025 Guide)

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As a business owner in Australia, you’re already handling a lot of tasks, like managing staff, tracking accounts and keeping everything on schedule. A key part of running a business smoothly is knowing how the ATO weekly tax table works and how it affects your payroll. The weekly tax table is based on current income tax rates, which determine how much tax you have to withhold from an employee’s wages. Understanding this makes it easier to manage payments and comply with tax rules. The Australian Taxation Office (ATO) collects income tax from individuals each financial year. In Australia, the financial year starts on 1 July and ends on 30 June of the following year. Right now, we’re in the 2025-26 financial year, which runs from 1 July 2025 to 30 June 2026. Below you’ll find the income tax brackets and rates for Australian residents for this year and previous years. What Is a Tax Table? This tax table is a guide published by the ATO that shows how much income tax employers need to deduct from employees’ wages. They follow progressive tax rates for Australian residents, ranging from no tax on income up to $18,200 a year to 45% on income over $190,000. For small and medium-sized businesses, using these tables correctly can help avoid problems. If employers withhold too little, they could face penalties. If they withhold too much, it could reduce an employee’s cash flow. These tables cover regular payments such as salaries, wages, allowances and holiday loading. They do not apply to lump sum payments or contractor payments under voluntary agreements, which have their own rules. You can also use the ATO’s tax withholding calculator on their website to work out the correct amount. What Is The 2025 Weekly Tax Table? The Australian Taxation Office (ATO) issues weekly tax tables that show how much tax employers need to deduct from their staff’s weekly wages. The ATO also produces tax tables for other pay periods, including fortnightly and monthly payments. In addition, the ATO offers specific tax tables for different types of payments and employee situations. By using the right table, you can ensure that the correct amount is deducted from wages each pay period. The PAYG Withholding Tax Table guides employers in finding the right amount to deduct, helping businesses stay on track with their tax obligations. How To Use The Weekly Tax Table First, analyse your employee’s total weekly pay and taxable income. This includes any allowances, overtime or bonus amounts in addition to their normal wage. Next, check whether your employee has chosen a tax-free threshold. This is the part of their income that can be earned before any tax is applied. For the 2024-25 financial year, the tax-free threshold is $18,200. Then, use the weekly tax table to match your employee’s income and threshold choice so you can find the correct amount of tax to withhold. For example, if your employee earns $1,500 a week and claims the tax-free threshold, the ATO’s weekly tax table for 2024-25 shows that you should withhold $192 from their weekly pay. Weekly Earnings Tax-Free Threshold Claimed Tax Withheld $1,500 Yes $192 The weekly tax table is used for various payments, including parental leave and compensation. The ATO also provides separate tax tables for overseas residents and working holidaymakers. Read Next: MYOB vs QuickBooks vs Xero (Which One Is Better) 2025 Use This Tax Table This tax table is for payments made from 1 July 2024. Use this table if you make any of the following weekly payments: Directors’ fees Paid parental leave Salaries, wages, allowances and holiday loading for employees Payments to religious workers Payments to salaried workers Government education or training payments Salaries and allowances to public officials (such as members of parliament, statutory office holders, defence force personnel and police officers) Compensation, sickness or accident payments paid regularly because a person is unable to work (unless the payment is being made to the policyholder under an insurance policy) Also apply this table to payments made to overseas residents. If you make payments to shearers, horticultural workers, artists or workers employed on a daily or casual basis, a different tax table may apply. If you employ workers under a Working Holiday Maker visa, use Schedule 15 – Tax Table for Working Holiday Makers for all their payments, including any unit payments. Frequently Asked Questions Q1. What happens if I don’t withhold the correct amount of tax from my employees’ wages? If you don’t withhold the correct amount of tax from your employee’s wages, the ATO may levy penalties. This may include interest on the tax paid and administrative penalties for non-compliance. In some cases, the ATO may consider it intentional and impose criminal penalties. To avoid problems, use the correct tax table and calculate the cash correctly. If you make a mistake, contact the ATO quickly to correct it and reduce any penalties. Q2. What should I do if my employee’s circumstances change and affect their cash? If your employee’s circumstances change, such as starting or stopping at the tax-free threshold, you must adjust their withholding. The employee must complete a new Tax File Number (TFN Declaration) form with the updated details. Once you have received your new TFN declaration, calculate the correct withholding amount using the appropriate tax table. Keep a record of all TFN declarations and employee status updates. Q3. Can I use the same weekly tax table for all my employees? No. The weekly tax table depends on the employee’s circumstances, such as residence status and whether they claim the tax-free threshold. The ATO provides separate tables for: Residents not claiming the tax-free threshold Residents claiming the tax-free threshold Holidaymakers Foreign residents Use the correct table for each employee to ensure the correct tax withholding. Recommended To Read: Buying a Car Through Your Business Australia (A Complete Guide)

Buying a Car Through Your Business Australia (A Complete Guide)
Managing a Business

Buying a Car Through Your Business Australia (A Complete Guide)

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Maximising your business vehicle tax deduction is an effective way for small business owners in Australia to manage their finances. Many owners believe that buying a car for work can reduce their tax bill, but the rules are not always straightforward. There are often misconceptions about how much can be claimed, which makes it important to get the right guidance. The Australian Taxation Office (ATO) updates its rules regularly, so you should work closely with your accountant to stay on track. In this guide, we break down the process in simple terms, providing clear tips on how small business owners can claim tax benefits when buying a car for business use. What Is a Business Car Loan? A business car loan helps you buy a vehicle for your company by borrowing money from a lender. Like other loans, you have to repay a certain amount in regular instalments, usually monthly, over a set period of time (known as the loan term). You can choose from a variety of business vehicle loans, such as a chattel mortgage, finance lease, or hire purchase. In this article, when we talk about business car loans, we mean a chattel mortgage (also called a goods loan), as it is the most common option used by businesses. Types of Motor Vehicle Deductions The ATO allows small business owners to claim tax deductions for motor vehicles used in business. Below is a general list of expenses you can claim as part of motor vehicle expenses: Petrol, fuel and oil Motor vehicle insurance premiums Interest on a car loan or lease Vehicle registration Repairs and servicing costs Depreciation (reduction in value) Lease payments Vehicle Depreciation: What You Need toKnow If you want to get the most out of your car loan tax deduction, you need to know which vehicle expenses you can claim as a business expense. Fuel and oil: You can claim work-related travel expenses, such as fuel and oil. Keep records of the miles you drive for business so you can support your claim and enjoy the savings. Depreciation: You can claim the depreciation of your business car as a tax deduction. This can significantly reduce your taxable income. Make sure you follow the Australian Taxation Office (ATO) rules carefully so that depreciation is calculated correctly. Insurance: Paying for vehicle insurance is more than just protection—it also qualifies as a deductible expense. Having insurance reduces the overall cost of using a business car. Repairs and maintenance: You can claim the cost of keeping your business car in good condition. Expenses like servicing, changing tires, and repairs count as tax deductions. Registration: You can also write off your car registration fees as a business expense. This tax deduction gives you another opportunity to save money for your company. Continue Reading: How to Use a Weekly Tax Table for Your Business (2025 Guide) Personal Vehicles And Tax Deductions Even if you buy a car in your own name for your small business, you can still claim a tax deduction for the miles and expenses you incur when using the vehicle for work. The easiest way to track both personal and business travel is to keep a logbook, which you can purchase from most newsagents. How you claim car expenses will depend on whether you operate as a sole trader, company, trust or partnership. Actual Costs Method This option uses receipts for all car expenses related to business travel. At the end of the financial year, you can claim the business portion of that expense. If you use the car for both work and personal travel, keep proper records. In such cases, multiply the total expense by the percentage of business use. Logbook Method When you use a logbook, you must write down details of each trip, including dates, start and end points, total kilometres and the reason for the journey. To find the business percentage, divide the business kilometres by the total kilometres travelled, then multiply by 100. You should also calculate all your car expenses for the financial year and apply your business usage percentage. Cents Per Kilometre This option requires you to multiply your total business kilometres for the year by the ATO rate. For 2022-23, the rate is 78 cents per kilometre. You can claim a maximum of 5,000 business kilometres per year using this method. FAQs Q1. What expenses can I claim for a business car? You can claim the costs of running a business car, including fuel, servicing, insurance, registration and interest on the car loan. You can also claim lease payments and depreciation. However, you can only claim the portion of expenses related to business use. Any personal or private use must be excluded. Q2. How do I calculate the percentage of business use of my car? To find out your percentage of business use, keep a logbook for at least 12 weeks. Record your odometer readings at the beginning and end of each business trip. Then, calculate the total kilometers driven for business as a percentage of your total kilometers during the logbook period. This percentage is used to estimate your claimable car expenses. Q3. What methods can I use to claim my business car expenses? There are two main methods: the logbook method and the cents-per-kilometre method. The logbook method allows you to claim actual car expenses based on a percentage of your business use. The cents-per-kilometre method allows claims up to 5,000 business kilometres per year at a fixed ATO rate. Companies and trusts can only use the actual expenses method. Recommended to Read: GST Exemptions in Australia: Key Benefits, Rules & Tax-Free Goods Guide

How Long to Keep Financial Records in Australia (A Complete Guide)
Managing a Business

How Long to Keep Financial Records in Australia (A Complete Guide)

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Records reflect the tax and super transactions made by your business. Your business records should have clear details so that we can see the purpose of each transaction and how it relates to your business income or expenses. Date, amount, description (for example: sale, purchase, salary, rent), and any Goods and Services Tax (GST) details for the transaction. 5 Essential Rules for Keeping Records 1. Keep all business-related records You must keep all records relating to every tax and super tax, including all records relating to the start, operation, change, sale or closure of your business. 2. Make records available on request You must be able to show us your records at any time. Keep details of your record-keeping system so that we can confirm that it meets legal requirements. 3. Maintain the accuracy of your records Do not alter your records with devices such as electronic sales suppression systems. Store them securely so that they cannot be altered or damaged. 4. Follow the 5-year retention period Keep most records for 5 years. This period starts from the date you created or acquired the record, or when the related transaction or action was completed – whichever is later. In some cases, the law sets a different starting point. 5. Keep records in English Your records should be in English or easily translated into English. Why Record Keeping Is Important Keeping proper records helps you: Monitor the health of your business and know whether you are making a profit or a loss. Avoid penalties for record-keeping errors. Make informed business decisions. Monitor cash flow so you can pay bills on time. Report tax, retirement and employer-related obligations, such as compensation, allowances or reports. Pay attention to your balances and outstanding balances. Show your financial status to lenders, buyers, tax agents or partners. If your business is audited, provide accurate information immediately. Income And Sales Transaction Records Bank statements and transaction records Business expense statements, including cash purchases Records of expenses related to assets or inventory Fuel tax credit documents if you claim the credit Employee and contractor information End-of-year documents, such as lists of creditors (those who owe you money) and debtors (those who owe you money) GST-related documents if you are registered for GST Use Digital Record Keeping You can store records digitally or on paper. The Australian Taxation Office (ATO) advises businesses to adopt digital recordkeeping where possible, as tax and superannuation reporting is increasingly moving online. Digital records streamline processes and save time once set up. If you choose digital records, you don’t need paper versions unless a regulation specifically requires them. Store Records Securely Protect both digital and paper records from alteration or loss. Always back up your digital files and, whenever possible, use secure off-site storage such as a cloud solution. Keep Financial Records Keeping clear and up-to-date financial records plays a vital role in the success of your business. Good record-keeping habits help you reduce losses, manage cash flow, meet tax, legal and regulatory obligations and improve financial understanding. An accountant can guide you in creating a reliable record-keeping system. Records Include: Keeping documents, whether digital or paper, that reflect the dates and amounts of transactions. Contracts, agreements and legal documents. Confidential customer and business data. You may need to obtain records during tax season, at the end of the financial year, or through authorities such as the Australian Taxation Office. Benefits of Effective Record Keeping When you keep accurate financial records, you can: Protect your business Organize and manage more effectively Monitor performance Increase profitability Manage risks with confidence Protect your business rights Back up business records Create valuable reports Comply with tax and legal standards Create a secure digital backup process to keep records safe and constantly updated. Back up important records daily for optimal protection. Read Also: What Is BAS & BAS Due Dates in Australia (2025 Guide) FAQs: Frequently Asked Questions Q1. How long do I have to keep customer identity records in Australia? Under the AML/CTF Act, you must keep customer identity records for seven years after you stop providing certain services to a customer. These requirements apply in addition to privacy laws and do not replace credit reporting obligations. Q2. Do I have to keep my bank statements for seven years? Yes, it is recommended. The ATO can request supporting records anytime between three and seven years after you file your tax return. For security reasons, store supporting documents for your return for at least seven years or longer. Q3. Can I safely dispose of old credit card statements? Yes, but destroy them safely. If possible, shred them. If you don’t trust them, tear them up by hand or cut them into small pieces. To prevent identity theft, make sure no one can get hold of them before you throw them away. Q4. How long should you keep financial records? If you request a credit or refund after filing a return, keep your records for 3 years from the date the original return was filed, plus the tax payment date, whichever is later.