Taxation can be a complex topic, but for employees and employers alike, understanding the fortnightly tax table is crucial for proper payroll management. Whether you’re looking for clarity on how much tax is deducted from your paycheck or need guidance on calculating employee wages, knowing how Australia’s fortnightly tax table works can save time and ensure compliance with the Australian Taxation Office (ATO).
Breaking Down the Fortnightly Tax Table
The fortnightly tax table is an ATO-issued guide that helps determine how much tax should be withheld from an employee’s wages when they are paid on a fortnightly basis. These tables ensure the correct Income tax in Australia, keeping individuals compliant with their tax obligations while preventing over or underpayment.
Unlike the weekly tax table, which applies to weekly-paid employees, the fortnightly tax table considers earnings over a two-week period and provides tax brackets accordingly.
Why Are Tax Tables Important?
The tax tables published by the ATO provide a quick reference for employers and payroll departments to calculate the correct tax deductions. Using these tables correctly helps to:
- Ensure compliance with tax laws.
- Avoid penalties for incorrect tax withholding.
- Prevent employees from having unexpected tax debts at the end of the financial year.
- Streamline payroll processing by providing a standardised system.
How to Use the Fortnightly Tax Table
Using the fortnightly tax table is straightforward if you follow these steps:
- Identify the Employee’s Gross Fortnightly Wage: Determine the pre-tax earnings for the two-week period.
- Locate the Relevant Tax Bracket: Use the ATO’s fortnightly tax table to find the applicable tax rate.
- Apply Tax Deductions: Deduct the amount specified in the tax table from the employee’s gross pay.
- Consider Additional Factors: If an employee has HECS-HELP debt, concessional tax rates, or claims the tax-free threshold, these need to be factored in.
Employers can also automate this process using payroll software integrating the latest ATO tax tables.
Fortnightly vs. Weekly Tax Table: What’s the Difference?
While both tax tables serve a similar purpose, they apply to different payroll schedules:
| Feature | Fortnightly Tax Table | Weekly Tax Table |
| Pay Period | Every two weeks | Every week |
| Tax Deduction Method | Higher deduction per pay cycle due to longer period | Lower deduction per cycle |
| Use Case | Common for salaried employees | Common for casual/part-time workers |
Choosing between fortnightly and weekly tax tables depends on an employer’s payroll structure and how frequently employees receive their wages.
Common Mistakes When Using Tax Tables
Many businesses make errors when applying tax tables, which can lead to payroll discrepancies and potential fines. Common mistakes include:
- Using outdated tax tables that no longer reflect current tax rates.
- Misclassifying employees (e.g., not considering tax offsets or Medicare levy exemptions).
- Forgetting to adjust tax calculations for employees with salary sacrifices or additional tax contributions.
- Not taking into account secondary employment, which could impact an employee’s tax obligations.
By staying updated with ATO changes and using automated payroll systems, businesses can avoid these pitfalls.
Where to Find the Latest Fortnightly Tax Tables
The ATO regularly updates tax tables to reflect changes in tax rates, thresholds, and policies. Employers and employees can find the latest Australia fortnightly tax table on the ATO website or consult a registered tax agent for tailored advice.
If you’re an employer, integrating ATO-compliant payroll software ensures automatic updates to tax calculations, reducing the risk of errors and saving valuable time.
Maximising Compliance with Infinity22
Understanding and correctly applying tax tables is vital for both businesses and employees. At Infinity22, we assist companies in managing their payroll efficiently and ensuring full compliance with Australian tax laws. Our expertise covers:
- Payroll processing and tax calculations.
- Guidance on choosing between weekly tax tables and fortnightly tax tables.
- Updates on ATO regulatory changes.
- Tax planning to minimise liabilities and maximise returns.
Stay Tax-Ready with Infinity22
Managing payroll and tax deductions doesn’t have to be complicated. Whether you’re an employer needing support with tax compliance or an employee wanting clarity on deductions, Infinity22 is here to help.
For expert guidance on Australia’s fortnightly tax table and payroll management, visit or contact us for a consultation today.
Infinity22 – Your Partner in Tax and Payroll Solutions.
