The employee's tax declaration
TFN, tax-free threshold, residency, Medicare and study loans: what each setting means.
Open the employee, select Tax, bank, super & leave, and copy the answers from their TFN declaration.
| Setting | How Plain uses it |
|---|---|
| TFN status | Provided, Applied for or Not provided. Not provided means tax at 47% (45% for foreign residents), as the ATO requires. |
| Tax residency | Australian resident, foreign resident or working holiday maker. Foreign residents use the ATO's foreign resident rates. |
| Claims the tax-free threshold | Usually yes for their main job only. |
| Medicare levy exemption | None, half or full, from a Medicare levy variation. |
| Medicare levy variation | For eligible employees who lodged the variation form, with the number of dependants. Plain reduces withholding as the ATO formula sets out. |
| Study and training loan | HELP, VSL, SFSS, SSL or TSL debt. Plain adds the extra withholding from the ATO table. |
Plain calculates PAYG using the ATO's Schedule 1 and Schedule 8 formulas for payments from 1 July 2026, and Schedule 15 for working holiday makers. See How Plain calculates pay, tax and super.
Was this article helpful?