What’s New?
Effective 24 September 2025, the ATO is updating its study and training support loans withholding schedules and tax tables. These changes reflect recent reforms to compulsory loan repayment rules.
These updates include:
- Schedule 8 — formulas used to calculate loan withholding amounts
- Weekly, fortnightly, and monthly tax tables for study support loans (Australian Taxation Office)
Why This Matters for You
If you employ staff, it’s vital to update your payroll software so you continue withholding the correct amounts from employee payments. Using outdated tables may result in incorrect withholding, underpayments, or compliance issues. (Australian Taxation Office)
What to Do
- Update your payroll software to include the new Schedule 8 and associated tax tables from 24 September.
- Continue with prior withholding methods for payments made between 1 July and 23 September—no need to recalculate those amounts. (Australian Taxation Office, ATO Software Developers)
- Start using the updated formulas (now following a linear y = a x – b structure) for all salary payments processed on or after 24 September. (ATO Software Developers)
If you’re unsure whether your software or staff are updated, this is the time to reach out for support.
How D&B Accountants Can Help You
- We’ll check that your payroll system is updated with the latest withholding tables.
- We’ll review whether your employee payments post-24 September use the correct formulas and ensure compliance.
- If your software isn’t up to date, we’ll help troubleshoot or liaise with your payroll provider.
Final Thought
With the ATO updating withholding schedules and tax tables for study and training support loans, accuracy matters more than ever. At D&B Accountants, we’re committed to making sure your payroll complies from 24 September onward, helping you avoid errors, fines, or disruptions.