Looking for information on the JobKeeper extension? Check out our answers to common questions the community has been asking.

ATO Community

Re: Residency for tax purposes status and Medicare Levy



Replies 1

Thank you for all the useful information. I think there is a miscommunication here. So, I'm working 6 hours for a week, but that's for 2 days, so 3 hours per day (3 hours on Thursday and another 3 on Friday). So pay rate is $18.50 per hour, then multiply by 3 hours, I'll get $55.5 per day. So that's $111 per week. $55.5 is per day and it's lower than $75 (recommended from the daily and casual tax table), so I think it makes sense why they don't withheld tax or deduct any amount from my wages. Now I understand that we compare the amount per day and not per week, that is why I'm questioning the system itself 😅.

So, another example, if I work 6 hours per day at the same pay rate $18.50, let's say 2 days a week as well. Then, $18.50 multiply by 6, it's $111 per day. That's $222 per week (multiply by 2 days). So I am liable of taxes based on the table. Can you please verify this?

Community Support

Replies 0

You're very welcome @Putu_Shiong,


Correct, the casual tax table is based on income earned daily, not weekly!


Now with your new details you’ve provided here’s your example:


Week 1 in the fortnight
3hrs Thursday x $18.50 = $55.50 = $0 tax to be withheld
3hrs Friday x $18.50 = $55.50 = $0 tax to be withheld


Week 2 in the fortnight
3hrs Thursday x $18.50 = $55.50 = $0 tax to be withheld
3hrs Friday x $18.50 = $55.50 = $0 tax to be withheld


Your fortnightly payslip will total = $222 with $0 tax withheld

26 fortnights in a year x $222 each fortnight = $5,772 total for the entire year


Therefor no tax needs to be withheld as you haven’t reached the $18,200 threshold


For your second example, IF you were working 6hrs per day x 4days a fortnight, your total income would be:
6hrs per day x $18.50 = $111 = $10 tax withheld
x 4 days a fortnight = $444 minus $40 tax

$444 x 26 fortnights in a year = $11,544 total income


As you still didn’t reach the $18,200 threshold, any tax that has been withheld by the employer or you will be refunded when you lodge your tax return.


How's that?


As I mentioned before though, tax and withheld amounts can be quite confusing by just reading, it might be better to get assistance from a specialist in person so they can go through it with you and show you examples in person!