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  • Claiming tax offsets



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

    End of attention

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

    To work out the payee’s annual tax offset entitlement into a weekly or monthly value, use the Ready reckoner for tax offsets. For weekly payments deduct the weekly amount from the amount shown in column 2 of the Withholding look-up tool. For the monthly value, deduct the monthly tax offset amount from the withholding amount calculated for monthly payments.


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

    • you are using column 3
    • you are using foreign resident rates

    when a payee does not provide you with their TFN.

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    A payee has weekly earnings of $563 and, if using column 2, the amount to be withheld is $48.

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

    Using the Ready reckoner for tax offsets, the weekly value is $19.

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

    • Amount to be withheld on $563 $48.00
    • less weekly offset value $19.00
    • Total amount to be withheld $29.00
    End of example
    Last modified: 14 Jun 2013QC 25921