I was rather bemused by this document I read - although I know this stuff is serious for some people. Personally, I just can't comprehend being in the situation where having more money taken out of your pocket now is better than possibly having to pay more at the end of the financial year. ------------------------------------ PAYG Withholding for 27 fortnightly pays in a year Important Information for Business Partners In some financial years, employees will have 27 pay days rather than the usual 26. For some employees this will occur in the 2015/16 financial year. The withholding tax tables published by the Australian Tax Office (ATO) are based on the normal (26) pay days in a financial year. Tax rates increase as taxable incomes increase. The additional pay day will mean that amounts withheld from salary and wage payments made to a number of employees may not cover the amount that will be payable when employees lodge their 2015/16 tax returns. Note: Employees will pay the same amount of tax irrespective of whether they request additional withholding. In this regard, the only difference is in the timing, i.e. the employee either pays the tax throughout the year or they pay it after the end of the tax year when their tax return is lodged. Which employees will be impacted? Employees with a fortnightly pay period ending 14 June 2015 (and fortnightly thereafter) will be impacted. What can be done? Employees who are concerned about the additional shortfall in amounts withheld may ask their employer to withhold additional amounts. Note: Employees are encouraged to seek independent financial advice relevant to their individual circumstances before making a decision to withhold additional tax.