PAYG Withholding

Employers are required to withhold amounts paid to employees and regularly send those payments to the Tax Office. This system is called PAYG Withholding.

Under PAYG withholding, businesses and other enterprises must deduct amounts from certain payments they make to others, including:

  • Payments to employees, company directors and office holders;
  • Payments under labour hire arrangements;
  • Payments under voluntary agreements;
  • Payments made because a person is unable to work (due to sickness, accident etc); and
  • Payments where an Australian Business Number (ABN) has not been quoted.

For PAYG Withholding Rates, please refer to the ATO website.

For further information see the PAYG Withholding homepage at the ATO website

  • Have a low income; or
  • Are a prescribed person.

A Medicare Levy Calculator is available at the ATO website to help you calculate your financial obligation.

For more information see the Medicare Levy Essentials homepage on the ATO website.