As part of the implementation of the Universities Accord (Reducing Student Debt by 20 Per Cent) Act 2025, which received Royal Assent on 2 August 2025, LawMaster has updated the PAYG Withholding formula to reflect changes to the Study and Training Support Loans (STSL) component.
Key Changes
- The legislation introduces a new method for calculating compulsory repayments and increases the repayment threshold for the 2025–2026 financial year.
- These changes will result in lower compulsory repayment amounts for most individuals with a study and training support loan.
- The ATO has released updated 2025–2026 PAYG Withholding Tax Tables, effective from 24 September 2025.
Accessing the Updated Tax Tables
The updated Pay as You Go Withholding Tax Tables 2025-2026 are available as a zip file from Lawyers Toolbar > Client Service Centre Icon > Other Downloads > ATO TaxScales 2025-2026 Effective 24/09/2025.
- Download the ZIP file to a convenient location.
- Extract the .txt file contained within.
- Save the .txt file separately in preparation for import into LawMaster.
Implementation Instructions
The .txt file should be imported into LawMaster before processing any pays dated on or after 24 September 2025 and may be imported immediately upon download as the updated tax rates will only apply to pays with a Pay Date of 24 September 2025 or later.
To import the Tax Scales go to Main Menu > Payroll & Personnel > Administration > Load (import) Tax Scales with the following inputs:
- Effective Date = 24/09/2025
- Input File = Select the ATO_TaxScales_2025-2026 - 24092025.txt file downloaded and extracted from the Client Service Centre
- Update Option = select List Only first and check there are no errors on OK, then re-run the module with Update As Well
- Skip Header Line = Yes
To check that you have imported the file successfully run List Tax Scales module from Main Menu > Payroll & Personnel > Administration. Enter 01/07/2025 in the Date From field. The grid report should show tax scales with an Effective Date of both 01/07/2025 and 24/09/2025.
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