What happens if an amount is withheld?
If you choose not to quote your TFN or ABN, or to claim an exemption, an amount will be withheld from your investment income if it is more than or equal to the threshold.
What your investment body does
Your investment body will withhold an amount and send it to us. It will also notify you of any amounts withheld:
- when notifying you of the payment of interest or other investment income in the usual statements sent out to you
- when sending a dividend or distribution cheque
- when updating passbook information, or
- in writing, within 21 days of you requesting the details of any amount withheld from interest or other investment income paid.
Claiming a credit for the amount withheld
If an amount is withheld from your investment income, you should claim the amount withheld as a credit when you lodge your tax return at the end of the financial year. There is a box on the tax return for this purpose.
You must declare all investment income on your tax return, regardless of whether an amount has been withheld.
If an amount is withheld by mistake
If an investment body withholds an amount in error from your investment income – for example, you quoted your TFN but the investment body failed to record it – you may be entitled to a refund of the amount withheld in error.
The investment body must refund the amount to you if you apply for the refund before 30 June of the relevant financial year during which the amount was withheld. If you do not apply for the refund before that time, you will need to lodge an income tax return to claim a credit for the amount withheld. In certain limited circumstances, a direct refund may be available from us.
Find out more
If you need more information about these refunds, phone us on 13 28 61 between 8.00am and 6.00pm, Monday to Friday.
If you forgot to claim your exemption
Where an amount is withheld because you forgot to claim an exemption, you can apply to us for a refund.
Find out more
If you need more information about these refunds, phone us on 13 28 61 between 8.00am and 6.00pm, Monday to Friday. At the same time, you should claim your exemption with all your investment bodies.
If you did not quote your TFN or ABN
Where an amount is withheld because you chose not to quote your TFN or ABN, or forgot to, the investment body cannot refund the amount withheld and you must wait until you can claim the amount withheld as a credit on your tax return.
Last modified: 16 Mar 2015QC 16808