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  • When your employee is a foreign resident

    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 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.

    There are two ways you can withhold from a foreign resident’s earnings:

    • If they have not given you a valid TFN, you need to withhold 47% for each $1 of earnings (ignoring any cents).
    • If they have given you a valid TFN, you need to withhold the amount calculated in the foreign resident tax rates below, rounding any cents to the nearest dollar.

    Foreign resident tax rates

    Monthly
    earnings
    $

    Monthly rate

    0 to 6,667

    32.5 cents for each dollar of earnings

    6,668 to 15,000

    $2,167 plus 37 cents for each $1 of earnings over $6,667

    15,001 and over

    $5,250 plus 47 cents for each $1 of earnings over $15,000

    Last modified: 18 Feb 2015QC 39410