Marginal Rate Calculator

This calculator lets you work out the marginal rate tax amount often applied to an unused leave on termination component.

Pay Period Type

Financial Year

Australian resident for tax purposes?

Tax file number provided?

Tax free threshold claimed?

STSL/HELP loan owing?

Normal gross earnings in one pay period

ATO definition of Normal Gross Earnings:

"Normal gross earnings are all payments, except those relating to termination payments, received in the last full pay period of employment. This includes taxable allowances, overtime and bonuses. Therefore, your employee’s normal gross earnings should be taken to be the earnings relating to the last full pay period worked.

Where your employee’s pay fluctuates significantly over a number of pay periods, we will accept an average of gross taxable earnings for the financial year to date over the number of pays received."

Annual/Holiday leave amount to be taxed ($)

Annual leave loading amount to be taxed ($)

Long service leave (post-August-1993) amount to be taxed ($)

Results

Annual Leave & Leave Loading

Step	Rule	Result
1	Using the relevant PAYG withholding tax table, work out the amount to withhold from your employee’s normal gross earnings for a regular pay period.
2	Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).
3	Ignore any cents.
4	Add the amount at step 3 to the normal gross earnings for a single pay period.
5	Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold for the amount at step 4.
6	Subtract the amount at step 1 from the amount at step 5.
7	Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).

Long Service Leave

Step	Rule	Result
1	Using the relevant PAYG withholding tax table, work out the amount to withhold from your employee’s normal gross earnings for a regular pay period.
2	Divide the amount of the payment by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).
3	Ignore any cents.
4	Add the amount at step 3 to the normal gross earnings for a single pay period.
5	Use the same PAYG withholding tax tables used at step 1 to work out the amount to withhold for the amount at step 4.
6	Subtract the amount at step 1 from the amount at step 5.
7	Multiply the amount obtained at step 6 by the number of normal pay periods in 12 months (12 monthly payments, 26 fortnightly payments or 52 weekly payments).