• Claiming tax offsets

    Attention

    Warning:

    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 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 fortnightly value, use the Ready reckoner for tax offsets. Deduct the fortnightly amount from the amount shown in column 2 of the Withholding look-up tool.

    Attention

    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 an employee does not provide you with their TFN.
    End of attention

    Example

    An employee has fortnightly earnings of $987 and, if using column 2, the amount to be withheld is $72.

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

    Using the Ready reckoner for tax offsets, the fortnightly value is $38.

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

    Amount to be withheld on $987 $72.00

    less weekly offset value $38.00

    Total amount to be withheld $34.00

    End of example

    Ready reckoner for tax offsets

    Amount claimed
    $

    Fortnightly value
    $

    1

    -

    2

    -

    3

    -

    4

    -

    5

    -

    6

    -

    7

    -

    8

    -

    9

    -

    10

    -

    20

    1.00

    30

    1.00

    40

    2.00

    50

    2.00

    57

    2.00

    60

    2.00

    70

    3.00

    80

    3.00

    90

    3.00

    100

    4.00

    200

    8.00

    300

    11.00

    338

    13.00

    400

    15.00

    500

    19.00

    600

    23.00

    700

    27.00

    800

    30.00

    850

    32.00

    900

    34.00

    1000

    38.00

    1100

    42.00

    1173

    45.00

    1200

    46.00

    1300

    49.00

    1400

    53.00

    1500

    57.00

    1600

    61.00

    1700

    65.00

    1750

    67.00

    1800

    68.00

    1900

    72.00

    2000

    76.00

    2500

    95.00

    2535

    96.00

    3000

    114.00

    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. Add values of $400, $20 and $2.

    = $15.00 + $1.00 + $0.00

    = $16.00

    Therefore, reduce the amount to be withheld by $16.00.

    End of example
    Last modified: 22 Apr 2015QC 39409