Navigating the world of PAYG withholding and payroll tax compliance can feel overwhelming—especially when you’re trying to make sense of something like the fortnightly tax table 2024. But don’t worry. Whether you’re a business owner, payroll officer, or employee, this guide breaks it all down in plain English.
We’ll explain what the fortnightly tax table is, how to use it for your fortnightly payroll, and why working with professionals like Perfect Accounting PTY Ltd can save you time, money, and stress.
What is the Fortnightly Tax Table?
The Australian Taxation Office (ATO) publishes updated tax tables annually, including the 2024 fortnightly tax table. This resource helps employers calculate the correct amount of tax to withhold from wages paid on a fortnightly pay cycle.
These tables factor in:
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Income tax brackets
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Tax-free threshold 2024
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Medicare levy
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HECS-HELP repayments
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Additional levies or student loan repayments
It ensures accurate tax withholding and smooth Single Touch Payroll (STP) reporting.
Why It’s Important for Employers
Let’s take a real-world example:
Sarah, who runs a family-run retail store in Perth, used an outdated ATO tax table for payroll. As a result, she underpaid her staff’s PAYG withholding obligations. The ATO caught the error during a review—and the fines weren’t pretty.
That’s why keeping up with the fortnightly tax table 2024 is not just good practice, it’s a legal requirement. Using the correct tax rates ensures employees are paying their fair share and businesses meet employer tax obligations.
When to Use the Tax Table
If you’re paying staff every two weeks, you should use the fortnightly tax table each time you process payroll.
It’s essential for:
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Calculating gross earnings and net pay
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Determining tax deductions
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Submitting STP reports
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Preparing employee payslips
What’s in the 2024 Table?
The ATO tax tables 2024 include:
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Brackets for taxable income
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Differentiated columns for those who have or haven’t claimed the tax-free threshold
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Adjusted figures for HECS-HELP repayments
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Inclusion of the Medicare levy
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Integration with your accounting software
For precision, use the official tax withholding calculator or consult a registered tax agent.
️ Step-by-Step Guide to Using It
Step 1: Identify Gross Pay
Calculate the employee’s gross wages, including overtime and salary sacrifice arrangements (if any).
Step 2: Determine Tax-Free Threshold Status
Ask if the employee has claimed the tax-free threshold. This changes the tax you’ll withhold.
Step 3: Look Up the Tax Amount
Using the fortnightly tax table, find the income bracket and corresponding withholding tax.
Step 4: Add Extra Components
If the employee has student debt or HELP loans, use the relevant adjusted figures.
Step 5: Record & Report
Withhold and report using your automated payroll system or through STP to the ATO.
Example Payroll Calculation
James earns $2,200 gross every two weeks. He’s claimed the tax-free threshold and has a HECS-HELP debt.
According to the 2024 tax tables, James’ PAYG withholding might be about $270. If he had no student debt, it would be closer to $225.
For accuracy, consider using the ATO’s calculator or professional payroll software.
✅ LSI Keywords in Context
Using correct payroll tax Australia figures isn’t just for big corporations. Even small business owners need to:
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Submit accurate BAS lodgements
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Calculate superannuation contributions
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Manage employee income tax
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Comply with payroll compliance laws
Whether you’re new to business payroll setup or need help managing wage withholding, Perfect Accounting PTY Ltd has got your back.
Why Trust Perfect Accounting PTY Ltd?
As a reliable accounting agent, Perfect Accounting specializes in:
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Payroll outsourcing
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ATO reporting
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Tax returns for individuals and businesses
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Ongoing compliance checks
Their team of registered tax agents will ensure your fortnightly payroll stays compliant with the ATO tax rates, and they’ll set up everything from automated payroll systems to deduction tracking for employee benefits.
Don’t risk mistakes. Let the experts handle your numbers.
Visit: www.perfectaccounting.com.au
Other ATO Tax Tables You Might Need
Depending on your pay cycle, here are a few more official tools:
These tools work great for all business sizes—from startups to large enterprises.
FAQ’s
1. Do you pay more tax on fortnightly pay in Australia?
No, you don’t pay more tax just because you’re paid fortnightly—tax is calculated proportionally based on your annual income, regardless of pay frequency.
2. How many fortnights are in a taxable year?
There are typically 26 fortnights in a standard financial year in Australia.
3. What is the withholding tax rate in Australia?
The withholding tax rate varies based on your income, but it starts at 0% for income under the tax-free threshold and can go up to 45% for higher income brackets.
4. How much tax do I pay in Australia?
It depends on your annual taxable income, deductions, and offsets—use the ATO tax calculator for an accurate estimate.
5. How to calculate fortnight?
A fortnight is simply a 14-day period—divide the year (365 days) by 14 to get approximately 26 fortnights per year.
Final Word
The fortnightly tax table 2024 is more than just a chart—it’s your guide to accurate, legal, and stress-free payroll. Don’t leave things to chance. Use the right tools, stay up to date, and let Perfect Accounting PTY Ltd help you every step of the way.
Ready to get payroll right?
Visit www.perfectaccounting.com.au and book a free consultation today.
