Show download pdf controls
  • 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 monthly value, use the Ready reckoner for tax offsets. Deduct the monthly amount from the amount shown in column 2 of the Withholding look-up tool (XLSX 58KB)This link will download a file.

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

    Example:

    An employee has monthly earnings of $3,783 and, if using column 2, the amount to be withheld is $598.

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

    Using the Ready reckoner for tax offsets, the monthly value is $83.

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

    • Amount to be withheld on $3,783 = $598.00
    • less monthly offset value - $83.00

    Total amount to be withheld = $515.00

    End of example

    Ready reckoner for tax offsets

    Tax offset entitlement – monthly value

    Amount claimed
    $

    Monthly value
    $

    1

    -

    2

    -

    3

    -

    4

    -

    5

    -

    6

    -

    7

    1.00

    8

    1.00

    9

    1.00

    10

    1.00

    20

    2.00

    30

    2.00

    40

    3.00

    50

    4.00

    57

    5.00

    60

    5.00

    70

    6.00

    80

    7.00

    90

    7.00

    100

    8.00

    200

    17.00

    300

    25.00

    338

    28.00

    400

    33.00

    500

    42.00

    600

    50.00

    700

    58.00

    800

    66.00

    850

    71.00

    900

    75.00

    1,000

    83.00

    1,100

    91.00

    1,173

    97.00

    1,200

    100.00

    1,300

    108.00

    1,400

    116.00

    1,500

    125.00

    1,600

    133.00

    1,700

    141.00

    1,750

    145.00

    1,800

    149.00

    1,900

    158.00

    2,000

    166.00

    2,500

    208.00

    2,535

    210.00

    3,000

    249.00

    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. For a monthly value add values of $400, $20 and $2.

    = $33.00 + $2.00 + $0.00

    = $35.00

    Therefore, reduce the amount to be withheld from monthly payments by $35.00.

    End of example
    Last modified: 14 Jun 2019QC 55439