• Examples

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Example 1 - Australian resident

    A payee receives $10,000 for a particular month, including $8,000 of JPDA income. The payee also has $1,000 paid into a superannuation fund of which 80% relates to the period in Timor-Leste. The payee is claiming the tax-free threshold on their Tax file number declaration, has not lodged a Withholding declaration and is not entitled to leave loading.

    The amount to be withheld is $2,986 using the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. The tax payable to Timor-Leste is $1,584, that is, 18% of $8,800 (the total entitlement of the payee which includes the JPDA income of $8,000 plus the superannuation payment of $800).

    The amount to be withheld and paid to us is $1,402 ($2,986 - $1,584).

    Example 2 - Timor-Leste resident and payment is all JPDA income

    A payee receives $10,000 for a particular month. The amount to be withheld and paid to us is $290 ($10,000   2.9%).

    Example 3 - Timor-Leste resident and payment is JPDA and non-JPDA income

    A payee receives $10,000 for a particular month, including $8,000 of JPDA income. The amount to be withheld is $3,305, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $925 ([$3,305 / $10,000]   [$800 + $2,000]).

    Example 4 - Not a resident of Australia or Timor-Leste and payment is all JPDA income

    A payee receives $10,000 for a particular month. The amount to be withheld is $3,305, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $331 ($3,305   10%).

    Example 5 - Not a resident of Australia or Timor-Leste and payment is JPDA and non-JPDA income

    A payee receives $9,000 for a particular month, including $7,500 of JPDA income. The amount to be withheld is $2,905, using the foreign resident tax rates included in the PAYG withholding - Monthly tax table (NAT 1007), effective from 1 July 2008. After rounding cents, the amount to be withheld and paid to us is $726 ([$2,905 / $9,000]   [$750 + $1,500]).

    Last modified: 16 Sep 2010QC 21570