The fortnightly tax table helps payroll teams stop withholding the wrong amount from employee payments. A small error in the tax table for payments made can affect PAYG withholding, tax offsets, or Medicare levy adjustments. ATO keeps a range of tax tables to help employers work out withholding for fortnightly pay, annual tax, and irregular payments.
This guide explains the right table, the ready reckoner for tax offsets, and the tax table for back payments. It also shows how Australian rates affect employees or other payees during each pay run.
What is a Fortnightly Tax Table?
A fortnightly tax table (NAT 1006) helps employers work out PAYG withholding for employees paid every two weeks. It converts taxable fortnightly earnings into withholding amounts using Australian Taxation Office rules. Employers use it during payroll alongside the tax file number, tax-free threshold, and withholding declaration. The table also helps handle Medicare levy, study and training support loans, and foreign resident cases. Correct use keeps withholding accurate, supports pay runs, and reduces year-end adjustments. The same approach works for weekly and monthly pay cycles too.
How to use an ATO Fortnightly Tax Table?
Start with the employee’s pay period, then check whether they claim the tax-free threshold. Next, use the ATO calculator or tax table to find the withholding amount. Then report it through Single Touch Payroll during the pay run. Use the matching fortnightly earnings band and adjust for Medicare levy or study-loan deductions. If you can’t find the exact figures in the table, then use the nearest lower figures to calculate the withholding amount. Consider using a Withholding Lookup Tool for more accurate and efficient calculations.
Fortnightly Tax Table 2024
The ATO fortnightly tax table for 2024 applies to payments made from 1 July 2024. Employers use it during payroll to calculate withholding accurately for each pay run. Final withholding can still change because of the tax-free threshold, Medicare levy, and tax offsets. Study-loan deductions also affect some employee payments directly. Use the ATO tax withheld calculator for irregular payments and exact withholding.
| Fortnightly Earnings | Marginal Tax Rates |
| $0-$700 | 0% (Tax-free threshold) |
| $701-$1,730 | 16% |
| $1,731-$5,192 | 30% |
| $5,193-$7,308 | 37% |
| $7,309 and above | 45% |
Extra Withholding Amount:
The withholding tax tables assume 26 pays per year. But in some situations, employees can end up receiving 27 pays per year. Therefore, use the table below to calculate the extra withholding amount in case such a situation arises.
| Fortnightly Earnings | Additional Withholding |
| $1,750-$5,149 | $12 per fortnightly pay |
| $5,150-$7,249 | $26 per fortnightly pay |
| $7,250 and above | $47 per fortnightly pay |
Fortnightly Tax Table 2025
The 2025 fortnightly tax table largely mirrors the 2024 regular withholding structure. ATO confirmed the weekly, fortnightly, and monthly tables stayed in force for 2025-26. However, study and training support loan tables changed on 24 September 2025. Employers should keep using the correct pay cycle, pay run, and withholding declaration details. That keeps tax withheld accurate and avoids incorrect amounts for employee payments. It also helps small businesses match reporting with Single Touch Payroll filings. The ATO tax withheld calculator remains useful for exact payroll checks.
Fortnightly Tax Table 2026
The 2026 fortnightly tax table will reflect the next personal tax changes from 1 July 2026, under which the second tax bracket was dropped from 16% (previously) to 15% (currently). Employers will still use it to calculate Pay As You Go (PAYG) withholding across each pay period. It remains important for payroll teams because correct withholding affects employees’ take-home pay and year-end taxes. The table will still account for tax file numbers, withholding declarations, Medicare levy settings, and study-loan deductions. ATO updates and Single Touch Payroll reporting will keep pay runs consistent. For foreign resident employees, employers should still follow the matching withholding rules.
PAYG Withholding, Tax File Number and Withholding Declaration
Employers use PAYG withholding to work out the correct amount of tax to withhold from payments. The ATO publishes tax tables to help employers, other payees, and payroll systems calculate withholding correctly. A TFN declaration tells the payer whether the employee claims the tax-free threshold, and a withholding declaration lets the payer adjust the amount withheld. The ATO also offers a tax withheld calculator that calculates the correct withholding amount.
Tax File Number:
A TFN declaration helps the payer work out how much tax to withhold from payments. If the payee does not provide a TFN within 28 days, the payer must withhold 47% from resident payees and 45% from foreign resident payees. Employers should collect the declaration before the first pay run, because payroll accuracy depends on it.
Tax-Free Threshold:
An Australian resident for tax purposes can claim the tax-free threshold on the TFN declaration. For a full-year resident, the first $18,200 of income is tax-free. Part-year residents receive an apportioned threshold, and ATO examples show at least $13,464 for some newcomers.
Withholding Declaration:
A withholding declaration authorises the payer to adjust the amount of tax withheld from payments. Employees usually use it when their tax situation changes, such as claiming the threshold differently or changing tax offsets. The ATO treats it as part of the employer’s withholding records.
PAYG Withholding and PAYG Tax:
PAYG withholding is the system employers use to collect income tax from employee payments. Employers then report and send the withheld amounts through the PAYG cycle and Single Touch Payroll. In practice, PAYG tax means the instalment withheld now, rather than the final income tax payable later.
| Item | Official rule or amount |
|---|---|
| TFN not provided within 28 days | 47% resident payee, 45% foreign resident payee |
| Full-year resident tax-free threshold | First $18,200 tax free |
| Medicare levy | 2% of taxable income |
| Foreign resident individual rates | 32.5% to $120,000; 37% to $180,000; 45% above $180,000 |
Tax Rules That Affect Fortnightly Pay
Fortnightly pay uses the ATO’s withholding formulas, so payroll teams must match the right tax table to each payment. Medicare levy settings, study and training support loan deductions, foreign resident rules, and irregular payment schedules can all change the withholding amount. The ATO also notes that fortnightly tables are based on 26 pays, so extra pay can cause under-withholding. Employers should therefore select the correct table before each pay run and use the tax withheld calculator when numbers look unusual.
Medicare Levy:
The Medicare levy is 2% of taxable income for most taxpayers. Some people receive a reduction or exemption, and ATO levy adjustments can change withholding in specific cases. However, the ATO does not update regular tax tables solely for levy threshold changes.
Study and Training Support Loan:
The ATO updated the study and training support loan fortnightly tax table from 24 September 2025. For fortnightly payments, the loan component applies when earnings reach $2,576 or more. The updated schedule uses linear formulas, and payers apply it prospectively only.
Foreign Resident:
ATO uses separate foreign resident tax rates for individuals who are foreign residents for the full year. If a foreign resident payee has no TFN, the payer withholds at the higher default rate from the payment. Below are the official foreign resident rates for fortnightly earnings released by the ATO.
| Fortnightly Earnings | Fortnightly Income Tax Rates |
| $0-$5,191 | 30 cents for each dollar of earnings |
| $5,192-$7,305 | $1,557 plus 37 cents for each $1 of earnings over $5,191 |
| $7,306 & over | $2,339 plus 45 cents for each $1 of earnings over $7,305 |
Keep in mind that the tax-free threshold applies to permanent residents only. So, foreign residents can’t claim the tax-free threshold.
Irregular Payments:
Back payments, commissions, bonuses, and similar payments use Schedule 5, not the normal fortnightly earnings table. From 1 July 2025, back payments that accrued more than 12 months earlier became Lump Sum E regardless of amount. That change also affected how employers report certain amounts through STP.
1 July 2026 Updates:
From 1 July 2026, the 16% resident tax rate falls to 15% for income between $18,201 and $45,000. Treasury says those legislated tax cuts start on 1 July 2026, and the ATO says the regular withholding tables will update then. Employers should use the official 2026-27 ATO tables instead of manually changing old figures.
Difference between Weekly, Fortnightly and Monthly Tax Table
The ATO publishes separate tax tables for weekly, fortnightly, and monthly pay cycles across Australia. Each table matches a different payroll rhythm, so employers can withhold tax according to the actual pay period. Because those tables assume regular payment patterns, extra payments can sometimes change the withheld amount.
Weekly Tax Table:
Employers use the ATO weekly tax table when they pay employees every seven days. It helps calculate withholding across 52 pay periods and keeps payroll aligned with weekly cash flow. The ATO warns that extra pay can leave insufficient withholding if payroll changes later.
Fortnightly Tax Table:
A fortnightly tax table is used when the employees are paid on a fortnightly basis (once every 2 weeks). The ATO says it is based on 26 pays, so payroll should follow the correct fortnightly earnings band. This keeps withholding accurate for regular pay cycles and helps avoid under-withholding on extra pays.
Monthly Tax Table
Monthly tax tables are used when the employees are paid once a month. It helps employers estimate how much to withhold from payments made monthly to employees or other payees. These ATO tax tables include a tax offset ready reckoner in the monthly table for some calculations.
Conclusion
The fortnightly tax table remains one of the most useful tools in the Australian tax system. The ATO publishes separate weekly, fortnightly, and monthly tax tables because each pay system needs different withholding logic. Employers should always select the tax table correctly, check tax-free threshold claims, and confirm irregular payments before processing payroll.
They should also watch the 1 July updates, because tax cuts can change withholding tables from the new income year. When payroll teams use the correct table, they reduce errors and protect employees from surprise taxes at return time. Which payroll rule causes you the most confusion?
FAQs
1. What is the ready reckoner for tax offsets?
It converts an annual tax offset into a fortnightly value for payroll. Employers then subtract that amount from the withholding figure.
2. Which tax table applies to back payments?
Use ATO Schedule 5 for back payments, commissions, bonuses, and similar payments. It applies separately from the normal fortnightly earnings table.
3. Do foreign residents use the same fortnightly tax table?
No, foreign residents follow separate tax rates and withholding rules. Employers should not apply resident tax-free threshold rules to them.
4. What is the easiest way to calculate withholding?
Use the ATO tax withheld calculator for weekly, fortnightly, monthly, or quarterly payments. It helps confirm the correct amount before finalising payroll.
5. Does the fortnightly tax table include tax offsets?
Yes, the ATO includes a ready reckoner for tax offsets in the table. Use it only when the payee qualifies for an offset adjustment.