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.
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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.
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