Tax rates are set up in the Tax Rates window and allow automatic calculation of employee tax. If it contains no tax rates or the tax rates are incorrect, contact Moveware for an updated table of rates.

Note: Tax scales in the system are provided by the Australian Tax Office (ATO). If tax rates are changed by the ATO, Moveware provides a file that can be imported into your Moveware application.

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How to Add a New Tax Rate

1. Navigate to Employees > Payroll Admin > Taxation Rates in the main menu.  
2. Click Add. Set the Scale, Description and wage parameters of the tax rate. Values a and b are filled in from the statement of formulae for calculating income tax instalments.
   Note: Rates generally use a Tax Scale of 02 (Tax Free Threshold Claimed). See the table below for more Tax Scales.  
3. The Tax Rates window may be used to create a customised tax rate if necessary. This is useful for creating a special rate for withheld tax when the ATO has sent a Withholding Variation letter.

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Tax Scale	Description
01	No Tax Free Threshold Claimed
02	Tax Free Threshold Claimed
03	Foreign Residents
04	Tax File Number Not Provided (Resident)
05	Full Medicare Levy Exemption Claimed
06	Half Medicare Levy Exemption Claimed
08	Tax File Number Not Provided (Foreign Resident)
14	Tax-Free Threshold Claimed with HELP/SSL/TSL
15	No Tax Free Threshold Claimed with HELP/SSL/TSL
20	No Tax-Free Threshold Claimed with HELP/SSL/TSL & FS
22	Tax-Free Threshold Claimed with HELP/SSL/TSL & FS
23	Senior Australians Single
24	Senior Australians Illness Separated
25	Senior Australians Member of a Couple

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