Withholding declaration - upwards variation

Question 8
Do you want to increase the rate or amount withheld from payments made to you?

You can agree with your payer to have the rate or amount of withholding increased to suit your individual circumstances. You may want to do this if, for example, you need to cover the tax payable on other income (such as interest or rent), or where you have more than one job and an accumulated HELP or Financial Supplement debt.

The varied rate or increased amount withheld cannot result in a lesser amount being withheld than would otherwise apply under the PAYG withholding tax tables or by regulation for the relevant withholding event. This includes payments made:

• to an employee, company director or office holder
• for a super payment, an employment termination payment, an annuity, a benefit or a compensation payment
• under a labour hire arrangement
• under a voluntary agreement to withhold.

If you complete this question you will also need to fill out the Upwards variation agreement. This agreement authorises your payer to increase the amount withheld from payments to you, starting from the date you specify.

Ending an upwards variation agreement

You can end the Upwards variation agreement at any time. All you have to do is notify your payer in writing that the amount withheld from future payments is to be in accordance with the PAYG withholding tax tables or at a rate specified by regulation, and not at the increased rate.

How do you reduce the amount withheld?

You can apply to reduce the rate or amount withheld to suit your individual circumstances. To apply for a reduced amount to be withheld, you must complete a PAYG withholding variation application (NAT 2036) and send it to us.

Sections within Section A: Payee's declaration

• Questions 1 and 2
• Question 3 What is your tax file number (TFN)?
• Question 4
• Question 5 Are you an Australian resident for tax purposes?
• Question 6 Are you claiming or do you want to claim the tax-free threshold from this payer?
• Question 7(a) Do you have an accumulated Higher Education Loan Program (HELP) debt?
• Question 7(b) Do you have an accumulated Financial Supplement debt?
• Question 8 Do you want to increase the rate or amount withheld from payments made to you?
• Declaration