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  • 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 monthly value, use the Ready reckoner for tax offsets. Deduct the monthly 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 monthly earnings of $3,783 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 monthly value is $83.

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

    Amount to be withheld on $3,783 - $598.00

    less weekly offset value - $83.00

    Total amount to be withheld - $515.00

    End of example

     

    Ready reckoner for tax offsets

    Amount claimed
    $

    Monthly Value
    $

    1

    -

    2

    -

    3

    -

    4

    -

    5

    -

    6

    -

    7

    1.00

    8

    1.00

    9

    1.00

    10

    1.00

    20

    2.00

    30

    2.00

    40

    3.00

    50

    4.00

    57

    5.00

    60

    5.00

    70

    6.00

    80

    7.00

    90

    7.00

    100

    8.00

    200

    17.00

    300

    25.00

    338

    28.00

    400

    33.00

    500

    42.00

    600

    50.00

    700

    58.00

    800

    66.00

    850

    71.00

    900

    75.00

    1000

    83.00

    1100

    91.00

    1173

    97.00

    1200

    100.00

    1300

    108.00

    1400

    116.00

    1500

    125.00

    1600

    133.00

    1700

    141.00

    1750

    145.00

    1800

    149.00

    1900

    158.00

    2000

    166.00

    2500

    208.00

    2535

    210.00

    3000

    249.00

    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. For a weekly value add values of $400, $20 and $2.

    = $33.00 + $2.00 + $0.00

    = $35.00

    Therefore, reduce the amount to be withheld from monthly payments by $35.00.

    End of example
    Last modified: 18 Feb 2015QC 39410