Understanding the Weekly Tax Table: A Simple Guide for Everyday Australians

When you receive your weekly paycheck, have you ever wondered how the amount of tax taken out is calculated? You might have noticed that your earnings and your tax deductions don’t always seem to follow a simple pattern. That’s where the Weekly Tax Table comes in—a handy tool used to figure out how much income tax you should pay on a weekly basis.

In this article, we’ll break down everything you need to know about the weekly tax table, using plain language, real-life examples, and easy-to-follow steps. Whether you’re an employee trying to understand your payslip or a small business owner who wants to stay compliant, you’ll find this guide useful—and maybe even a little fun.

What Is the Weekly Tax Table?

The Weekly Tax Table is a resource published by the Australian Taxation Office (ATO) to help employers work out the correct amount of PAYG (Pay As You Go) withholding tax from their employees’ weekly wages. It’s part of a series of tax tables (including daily, fortnightly, and monthly versions) that make it easier for payroll systems to stay accurate and compliant.

Think of it as a cheat sheet for taxes—it tells you exactly how much to deduct based on an employee’s earnings and tax status.

Why Is the Weekly Tax Table Important?

Let’s say you’re a café owner named Maria. You’ve just hired two casual employees, both working different hours every week. Maria wants to pay them correctly and avoid issues with the ATO down the line. By using the weekly tax table, she can easily calculate the exact amount of tax to withhold, based on their gross pay for that week. No guesswork. No penalties. Just peace of mind.

How Does the Weekly Tax Table Work?

The weekly tax table considers several factors:

• Gross weekly earnings

• Tax file number (TFN) status

• Medicare levy

• Tax offsets (e.g., low-income tax offset)

• HELP/HECS or other student loan debts

Employers compare the employee’s weekly income with the table provided by the ATO to determine how much to withhold. You can also use the ATO’s online tax withheld calculator for more precise figures.

A Step-by-Step Guide to Using the Weekly Tax Table

Here’s how you can use the weekly tax table in your business:

Step 1: Download the Latest Version

Visit the ATO website’s tax tables page and download the most recent weekly tax table PDF.

Step 2: Confirm the Employee’s TFN and Tax Status

Check if the employee has provided a valid Tax File Number (TFN) and whether they’ve claimed the tax-free threshold.

Step 3: Calculate Gross Weekly Earnings

Add up the total hours worked and multiply by the employee’s hourly wage to get gross weekly earnings.

Step 4: Refer to the Table

Using the weekly tax table, find the corresponding tax withheld amount for that level of income.

Step 5: Apply Adjustments

If the employee has a HELP or SFSS debt, or if they’re claiming a tax offset, adjust the withheld amount accordingly. The table includes these scenarios.

Step 6: Record and Report

Withhold the correct amount, pay the employee, and keep a record for end-of-year reporting.

Real-Life Anecdote: Meet Jake, the First-Time Employer

Jake recently opened a landscaping business in Melbourne. When his first employee, Laura, handed in her timesheet for 38 hours, Jake panicked. “How on earth do I know how much tax to take out?” he wondered. A quick Google search led him to the ATO’s weekly tax table.

Using the table, he calculated the tax in under 5 minutes. No accounting degree required. Jake felt confident issuing Laura’s payslip—and avoided any trouble with the ATO.

Common Questions About the Weekly Tax Table

❓ What if someone earns a different amount each week?

The weekly tax table is designed to work with variable income. Just recalculate each week based on their current gross earnings.

❓ What happens if I use the wrong tax table?

Using the wrong tax table or making errors can lead to underpayment or overpayment of tax, which may result in fines or needing to correct previous payroll records.

Mistakes to Avoid

• Forgetting to update the tax table annually

• Miscalculating hours or not including overtime

• Overlooking employees with HELP/HECS debts

• Not confirming if the employee claimed the tax-free threshold

Make Your Life Easier With Professional Help

Even though the weekly tax table is a useful tool, keeping up with tax obligations can still be time-consuming and confusing—especially for small business owners. That’s where Perfect Accounting PTY Ltd can help.

They’re experienced accounting agents who specialize in payroll, tax compliance, and bookkeeping. Whether you run a café, a construction firm, or a digital agency, their team ensures your payroll is accurate and your taxes are up-to-date—every single week.

✅ Affordable packages tailored to small businesses
✅ Friendly support you can rely on
✅ Expertise in all things ATO and compliance

Stop worrying about payroll. Let the professionals do the hard work for you. Visit www.perfectaccounting.com.au and request a free consultation today.

Final Thoughts

Understanding the weekly tax table doesn’t have to be a headache. With a bit of guidance, the right tools, and possibly the help of experts like Perfect Accounting PTY Ltd, you can keep your business on track and your employees paid correctly.

Knowledge is power—and when it comes to taxes, it can also save you time, money, and stress.

Don’t leave it to chance—get your weekly payroll right every time.
Need help? Contact Perfect Accounting today and take the guesswork out of taxes.