• ## 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:

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