Schedule 4 – Tax table for return to work payments
For payments made on or after 1 July 2021
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by section 12-50 of Schedule 1 to the TAA.
Using this schedule
You should use this schedule if you pay an individual to resume working for, or providing services to, you or any other entity.
If you employ individuals under a working holiday makers visa you must use the Tax table for working holiday makers for all payments made to them, including return to work payments.
We have a calculator to help you work out the correct amount of tax to withhold from payments to most employees. To access the calculator, refer to Tax withheld calculator.
Working out the withholding amount
To work out the amount you need to withhold, multiply the amount of the return to work payment by 34.5%. This rate applies to residents and non-residents.
George previously worked for IT Services Pty Ltd. Due to a shortage in IT personnel, IT Services Pty Ltd offered George a position if he would return to work for it.
He was paid $18,000 to start work, in addition to his salary.
The total amount IT Services Pty Ltd must withhold from the return to work payment is 34.5% × $18,000 = $6,210.
End of example
Rounding of withholding amounts
Withholding amounts calculated should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.
Last modified: 21 Jun 2021QC 65801