ATO Payday Super Changes
Since 1 July 2026, employers must pay super with each pay run. Contributions have to reach the fund within seven business days of payday.
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Free PAYG Withholding Calculator 2026
Calculate the correct tax withholding from employee wages. ATO-aligned for 2026-27.
Tax Withheld
$125.96
Net Take-Home
$1,374.04
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Gross amount before tax deductions.
The frequency of salary disbursements.
Net Take Home Pay
Calculated using 2026-27 Individual Tax Rates
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Payroll Wisdom
PAYG withholding is mandatory for all employers. Failure to withhold correctly can lead to ATO penalties.
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### 🇦🇺 AusCalc Report: PAYG Withholding Estimator *Generated via [auscalc.com.au](https://auscalc.com.au/payg)* **Scenario Input Parameters:** - **Gross Amount:** $1,500.00 - **Pay Frequency:** Fortnightly - **Has HECS Debt:** No **Calculated Estimates & Financial Analysis:** - **Net Take-Home Pay:** $1,374.04 - **Income Tax Only:** $95.96 - **Medicare Levy:** $30.00 - **Total Tax Withheld:** $125.96 - **Total Gross Pay:** $1,500.00 --- *Disclaimer: Calculated estimates are for reference only. Verify all projections with a Registered Tax Agent before making key business decisions.*
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PAYG Withholding Breakdown Report
Tax estimation for a fortnightly gross payment of 1500.
Scenario Parameters
Financial Analysis
This document provides calculated estimates based on public Australian Taxation Office (ATO) guidelines and typical business parameters for the 2024-2026 financial years. AusCalc provides these models for strategic planning purposes only. These figures do not constitute personal financial, legal, or professional tax advice. Actual results depend on individual tax structure, deductions, and legislation changes. We mandate that you verify these projections with a Register Tax Agent or Financial Advisor before executing business strategies.
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
Related Compliance Tools
The Complete Australian PAYG Withholding Guide (2026-27)
How This PAYG Withholding Calculator Works
This online payroll estimator utilizes formulas that mirror the official Australian Taxation Office (ATO) withholding tables for the 2026-27 financial tax year. When you enter a gross salary or hourly wages amount and select a frequency, the system first translates that base pay into an implied annualized gross figure. It then applies the progressive marginal margins of the 2026-27 resident individual scales (including the Stage 3 modifications).
Once the annual tax liability is derived, the calculator divides it back into the matching cycle intervals to calculate the base withholding amount. Additionally, the calculator factors in the 2% Medicare Levy with the low-income reduction applied to the annualised figure, so a pay packet that annualises below $28,011 attracts no levy at all and one between $28,011 and $35,013 attracts a reduced amount. If study debt withholding is selected, it evaluates the gross income against the weekly, fortnightly, or monthly repayment tables to compute the precise compulsory HECS/HELP withholding deduction required for that cycle.
Worked Step-By-Step Payroll Scenario (2026-27)
Let's process a worked numerical example for an employee receiving a gross payment of $3,500 fortnightly who does not have an active Study Debt (HECS/HELP), claiming the tax-free threshold.
$0 to $18,200 = $0 Tax
($45,000 - $18,200) @ 15% = $4,020
($91,000 - $45,000) @ 30% = $13,800
Annual Gross Tax = $17,820
Expected Withholding: $19,640 / 26 = $755.38
Net Take-Home Pay: $2,744.62
Employers handle this withholding internally under standard Single Touch Payroll (STP) routines. Note that if this employee had verified a HECS-HELP study debt, an additional HECS withholding is applied to avoid a bill at tax time.
Who Should Use This PAYG Tool?
This utility is designed for small-to-medium Australian employers conducting in-house payroll checks, human resources coordinators cross-checking automated payslip software, contract recruiters modeling client take-home rates, and standard TFN employees seeking to double-check that their weekly, fortnightly, or monthly net pay matches official ATO schedules.
Important Payroll Thresholds for 2026-27
- Standard Medicare Levy2.0% of gross taxable payments
- Tax-Free Selection LimitUp to $18,200 annual salary (withholdings are reduced)
- Primary HECS Repayment ThresholdStarts once annualized payment exceeds $54,435
- Superannuation Guarantee Rate12.0% of Qualifying Earnings (paid on top of salary)
Frequently Asked Questions (FAQ)
What is the tax-free threshold option on a TFN declaration?
The tax-free threshold is $18,200, which reduces the PAYG withholding on your primary income source. If you have multiple employers and claim the threshold on all of them, too little tax will be withheld, leading to a substantial debt when you file your annual return. You should generally only claim it from your primary employer.
Why is my PAYG tax withholding higher in cycles where I worked overtime?
PAYG withholding calculators are periodic. They calculate tax by multiplying that specific period's pay by the number of periods in a year (e.g., 26 fortnights). If you receive overtime, an allowance, or a bonus in one fortnight, the ATO formulas assume you earn that inflated rate all year, leading to higher withholding. This resolves as a refund at the end of the financial year.
How does having a study debt (HECS/HELP) affect withholding?
Your employer must withhold extra tax according to the special study debt tables. When your periodic pay crosses the repayment threshold, the employer adds a secondary withholding amount (ranging from 1% to 10% depending on income brackets) to cover your compulsory repayments.
Do employers pay superannuation on top of the calculated PAYG amount?
Yes. Employers must contribute superannuation under the Superannuation Guarantee (SG) rules at 12.0% of your qualifying earnings (QE, the term that replaced ordinary time earnings on 1 July 2026). This is calculated in addition to your standard gross salary. Since 1 July 2026 it must reach your nominated super fund within seven business days of each payday, not quarterly.
What happens if an employer does not withhold enough PAYG tax?
If an employer fails to withhold the correct PAYG tax, the employee will find themselves with an unexpected tax bill when they file their annual personal return. Additionally, employers face serious penalties from the ATO under the Failure to Withhold guidelines and are liable for interest charges.