Tax file number (TFN) declarations
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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The answers your employees provide on their Tax file number declaration (NAT 3092) determines the amount you need to withhold from their payments. A Tax file number declaration applies to any payments made after you receive the declaration. If you receive an updated declaration from an employee, it will override the previous one.
If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details of the employee and send it to us.
What if a TFN has not been provided?
You must withhold 46.5% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) if one of the following applies:
- they have not quoted their TFN
- they have not claimed an exemption from quoting their TFN
- they have not advised you that they have applied for a TFN or have made an enquiry with us.
If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals (NAT 1432) with us, they have 28 days to provide you with their TFN.
If the employee has not given you their TFN within 28 days, you must withhold 46.5% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) unless we tell you not to.
Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for:
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- Higher Education Loan Program (HELP) debts
- Financial Supplement (FS) debts.
What if my employee is under 18?
There is no requirement for employees who are under 18 years of age to provide you with their TFN, provided that the payment you make to them does not exceed:
- $350 per week (if you pay weekly)
- $700 per fortnight (if you pay fortnightly)
- $1,517 per month (if you pay monthly).
The standard rate of withholding of 13% applies where an employee has given you a valid TFN and you withhold amounts using the figures shown in column 2 of the Withholding look-up tool.
If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 3 of the Withholding look-up tool.
What if your employee is a foreign resident?
If your employee has answered no to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration, you will need to use the foreign resident tax rates.
Where an employee has given you a valid TFN, you withhold amounts using the figures shown in column 4 of this table. If the employee has not given you a valid TFN, you must withhold amounts using the figures shown in column 5 of this table.
Generally, foreign resident employees cannot claim tax offsets. In limited circumstances, they may be entitled to claim a zone or overseas forces offset. If your foreign resident employee has claimed a tax offset on the Tax file number declaration, you don’t need to make any adjustment to the amount you withhold.
Last modified: 14 Jun 2013QC 25926