Show download pdf controls
  • Tax file number (TFN) declarations

    The answers your payees provide on their Tax file number declaration determine 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 a payee, it will override the previous one.

    If a payee does not give you a valid Tax file number declaration within 14 days of starting a payer-payee relationship, you must complete a Tax file number declaration with all available details of the payee and send it to us.

    When a TFN has not been provided

    You must withhold 47% from any payment you make to a resident payee and 45% from a foreign resident payee (ignoring any cents), if all of the following apply:

    • 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 a payee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals with us, they have 28 days to provide you with their TFN.

    If the payee has not given you their TFN within 28 days, you must withhold 47% from any payment you make to a resident payee and 45% from a foreign resident payee (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 study and training support loans.

    When your payee has a study and training support loan debt

    If your payee has a HELP, VSL, FS, SSL or TSL debt, you may need to withhold additional amounts from their payments. Your payee will need to notify you of this on their Tax file number declaration or Withholding declaration.

    Work it out

    To calculate additional withholding amounts for:

    Allowances

    Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

    For more information on when to withhold and report on allowances, refer to Withholding for allowances.

    Last modified: 13 Oct 2020QC 63805