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  • 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 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 monthly earnings of $3,783 and, if using column 2, the amount to be withheld is $511.

    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 = $511.00
    • less monthly offset value −$83.00

    Total amount to be withheld = $428.00

    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

    8

    1

    9

    1

    10

    1

    20

    2

    30

    2

    40

    3

    50

    4

    57

    5

    60

    5

    70

    6

    80

    7

    90

    7

    100

    8

    200

    17

    300

    25

    338

    28

    400

    33

    500

    42

    600

    50

    700

    58

    800

    66

    850

    71

    900

    75

    1,000

    83

    1,100

    91

    1,173

    97

    1,200

    100

    1,300

    108

    1,400

    116

    1,500

    125

    1,600

    133

    1,700

    141

    1,750

    145

    1,800

    149

    1,900

    158

    2,000

    166

    2,500

    208

    2,535

    210

    3,000

    249

    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 + $2 + $0

    = $35

    Therefore, reduce the amount to be withheld from monthly payments by $35.

    End of example
    Last modified: 13 Oct 2020QC 63812