Fortnightly tax table

Claiming tax offsets

If your employee chooses to claim their entitlement to a tax offset through reduced withholding, they must provide you with a Withholding declaration.

To work out the employee’s annual tax offset entitlement into a fortnightly value, use the Ready reckoner for tax offsets. Deduct the fortnightly amount from the amount shown in column 2 of the Withholding lookup tool (XLSX 34KB)This link will download a file.

Do not allow for any tax offsets if any of the following apply:

you are using column 3
you are using foreign resident tax rates
when an employee does not provide you with their TFN.

Example:

An employee has fortnightly earnings of $987 and, if using column 2, the amount to be withheld is $62.

The employee claims a tax offset entitlement of $1,000 on their Withholding declaration.

Using the Ready reckoner for tax offsets, the fortnightly value is $38.

The total amount to be withheld is worked out as follows:

Amount to be withheld on $987 = $62.00
less fortnightly offset value –$38.00

Total amount to be withheld = $24.00

End of example

Ready reckoner for tax offsets

Tax offset entitlement – fortnightly value
Amount claimed $	Fortnightly value $
1	–
2	–
3	–
4	–
5	–
6	–
7	–
8	–
9	–
10	–
20	1
30	1
40	2
50	2
57	2
60	2
70	3
80	3
90	3
100	4
200	8
300	11
338	13
400	15
500	19
600	23
700	27
800	30
850	32
900	34
1,000	38
1,100	42
1,173	45
1,200	46
1,300	49
1,400	53
1,500	57
1,600	61
1,700	65
1,750	67
1,800	68
1,900	72
2,000	76
2,500	95
2,535	96
3,000	114

If the exact tax offset amount claimed is not shown in the ready reckoner, add the values for an appropriate combination.

Example

Tax offsets of $422 claimed. Add values of $400, $20 and $2.

= $15 + $1 + $0

= $16

Therefore, reduce the amount to be withheld by $16.

End of example

Last modified: 13 Oct 2020QC 63811