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  • Withholding declarations

    A payee can use the Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding. For more information on tax offsets, refer to Claiming tax offsets.

    Payees can also use a Withholding declaration to advise you of changes to their situation that may vary the amount you need to withhold.

    Changes that may affect the amount you need to withhold include:

    • becoming or ceasing to be an Australian resident for tax purposes
    • claiming or discontinuing a claim for the tax-free threshold
    • advising of a HELP, VSL, FS, SSL or TSL debt (or changes to them)
    • entitlement to a seniors and pensioners tax offset.

    When your payee provides you with a Withholding declaration, it will take effect from the next payment you make. If you receive an updated declaration from a payee, it will replace the previous one.

    A payee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.

    Last modified: 13 Oct 2020QC 63805