Reduced tax rates for Ansett employees

Media release 2001/80

Companies employing Ansett staff should tax them as if it is their only or 'primary' job, Tax Commissioner Michael Carmody announced today.

The Tax Office has varied the withholding tax rate (tax taken from employees' salaries) to ensure that Ansett staff who find short-term work with other companies are not disadvantaged.

"This means Ansett staff will be able to claim the tax-free threshold when they find other employment," Mr Carmody said.

"It is important that employers are aware of this varied rate."

This measure will apply to people who:

• are currently employed by Ansett
• receive their main source of income from an employer other than Ansett
• have claimed the tax-free threshold from Ansett, and
• have provided a Tax File Number Declaration Form to their other employer quoting their tax file number.

This variation applies immediately and will continue while Ansett remains under voluntary administration or until 31 January 2002.

The variation in withholding tax allows Ansett employees to claim this rate from just one other employer.

CANBERRA
5 October 2001