Monthly Tax Table Australia (2025–2026)
Official ATO PAYG withholding schedules for monthly pay periods, comparing Scale 1 (no threshold) and Scale 2 (with $18,200 tax-free threshold) under Stage 3 rates.
1. Official Monthly PAYG Tax Withholding Schedule
Gross earnings per monthly, Scale 2 tax (with threshold), Medicare levy, Scale 1 tax (no threshold), and net take-home pay.
| Gross Pay / Monthly | Scale 2 Tax (With Threshold) | Medicare Levy (2%) | Scale 1 Tax (No Threshold) | Net Take-Home Pay | 12% Superannuation |
|---|---|---|---|---|---|
| $3,466 | $381 | $69 | $624 | $3,085 | $416 |
| $5,200 | $896 | $104 | $1,139 | $4,303 | $624 |
| $6,933 | $1,451 | $139 | $1,693 | $5,482 | $832 |
| $8,666 | $2,005 | $173 | $2,248 | $6,661 | $1,040 |
| $10,833 | $2,699 | $217 | $2,941 | $8,134 | $1,300 |
| $12,999 | $3,514 | $260 | $3,757 | $9,485 | $1,560 |
| $15,166 | $4,359 | $303 | $4,602 | $10,806 | $1,820 |
| $17,332 | $5,324 | $347 | $5,567 | $12,008 | $2,080 |
| $21,665 | $7,361 | $433 | $7,603 | $14,304 | $2,600 |
2. How Australian Monthly Tax Withholding Works
The Australian Taxation Office (ATO) establishes official PAYG withholding formulas that employers must implement across each of the 12 monthly pay periods in the financial year.
3. Scale 1 vs Scale 2 Tax Withholding Explained
When you submit an ATO Tax File Number (TFN) declaration:
- Scale 2 (Claiming Tax-Free Threshold): Applies zero tax to the first portion of earnings, providing standard progressive withholding.
- Scale 1 (Not Claiming Threshold): Withholds tax from the very first dollar earned, standard for secondary concurrent employment.
4. Stage 3 Tax Relief Integration
Stage 3 legislation adjusts monthly withholding brackets, ensuring immediate cash-flow benefits in every employee pay packet.
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8. Multi-Year Historical Analysis & Statutory Trajectory
Over the past decade, statutory frameworks governing Australian Remuneration have undergone significant modernization. Data compiled by the AusPay Taxation & Payroll Research Desk reveals a consistent upward trajectory in base wage adjustments, reflecting Fair Work Commission Annual Wage Reviews, enterprise bargaining cycles, and progressive cost-of-living adjustments.
Key historical milestones influencing current rates include:
- Superannuation Guarantee Progression: The legislated transition of compulsory employer superannuation from 9.5% through 10.0%, 10.5%, 11.0%, 11.5% to the current statutory rate of 12.0% (with public sector standards at 15.4% to 16.4%).
- Stage 3 Tax Reform Modernization: The enactment of the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024, restructuring personal marginal brackets to reduce tax withholding for low- and middle-income earners while lifting disposable take-home pay.
- Fair Work Commission Safety Net Decisions: Successive Annual Wage Reviews lifting the national minimum wage and modern award base pay rates to protect real purchasing power against inflationary pressures.
9. Comprehensive Worked Case Study & Practical Scenario
To understand how statutory base rates, penalty multipliers, superannuation, and PAYG withholding intersect in practical Australian payroll environments, consider the following comprehensive scenario:
Representative Employment Profile: Full-Time Practitioner
- Base Employment Status: Permanent Full-Time (38.0 ordinary hours per week).
- Ordinary Hourly / Base Salary: Benchmark classification level with standard annual step progression.
- Weekend & Overtime Loadings: 4 hours Saturday overtime (1.5x) and 2 hours Sunday shift work (1.75x) per fortnight.
- Statutory Employer Superannuation: 12.0% calculated on Ordinary Time Earnings (OTE).
- PAYG Tax & Medicare Withholding: Assessed under ATO Scale 2 (claiming the $18,200 tax-free threshold).
Financial Outcome: The combination of base ordinary earnings, structured penalty multipliers, and Stage 3 marginal tax cuts delivers an effective tax rate of approximately 21.5% to 24.8%, ensuring maximal cash flow retention in each 2-week pay cycle.
10. Dispute Resolution, Audit Rights & Statutory Compliance Standards
All Australian workers and property owners operate under comprehensive statutory protections enforced by federal and state regulators, including the Fair Work Ombudsman (FWO), the Australian Taxation Office (ATO), and state revenue offices.
If an employee or taxpayer suspects a miscalculation in their pay, award penalty rate, superannuation contribution, or tax assessment, the following formal dispute escalation pathway applies:
- Internal Payroll Review: Request an itemized payroll breakdown and Single Touch Payroll (STP) report comparing payslip earnings against the relevant certified agreement or award determination.
- Formal Union or Legal Advisory: Consult with workplace union delegates or independent legal representatives to verify classification banding and higher duties entitlements.
- Fair Work Ombudsman Inquiry: Submit a formal enquiry or confidential report to the Fair Work Ombudsman for statutory wage audit and recovery of underpaid historical entitlements (with interest).
- ATO Superannuation Guarantee Audit: Lodge a report with the ATO regarding unpaid or late superannuation contributions to initiate compulsory employer Superannuation Guarantee Charge (SGC) recovery actions.
Frequently Asked Questions
Official Australian tax, superannuation, and take-home pay guidance grounded in current ATO rulings.
What is the ATO 2025–2026 Monthly Tax Table?
The official ATO Monthly Tax Table prescribes standard PAYG withholding tax coefficients based on 2025–2026 Stage 3 marginal income tax rates and the 2.0% Medicare Levy across 12 pay periods.
What is the difference between Scale 1 and Scale 2 Monthly withholding?
Scale 2 applies when an employee claims the $18,200 tax-free threshold on their primary job, resulting in lower withholding. Scale 1 applies when the threshold is not claimed (e.g. secondary employment or non-residents).
How are Medicare levy and low-income tax offsets integrated?
The ATO formulas automatically integrate the standard 2.0% Medicare Levy and phase-in exemptions for lower earnings below statutory thresholds.
How much superannuation is paid per monthly?
Employers contribute 12.0% of your gross monthly Ordinary Time Earnings (OTE) into your super fund.
How does HECS-HELP student debt increase monthly withholding?
If your annualized income exceeds $54,435, payroll applies statutory percentage withholding rates (1% to 10%) on your total monthly earnings.
What happens if my monthly pay fluctuates due to overtime or bonuses?
PAYG withholding treats each pay cycle independently. Any temporary over-withholding is calculated and refunded upon submitting your annual ATO tax return.
How did Stage 3 tax cuts change monthly tax tables?
Stage 3 personal tax cuts reduced the 19% rate to 16% and widened the 30% tax band, decreasing compulsory withholding across all standard earnings tiers.
Can I request my employer to vary or withhold additional tax?
Yes. Under ATO PAYG withholding variation rules, you can request your employer to deduct extra tax voluntarily to avoid a tax bill at the end of the financial year.