• Claiming tax offsets

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 weekly value, use the Ready reckoner for tax offsets. Deduct the weekly amount from the amount shown in column 2 of the Withholding lookup tool (XLSX 34KB)This link will download a file.

Do not allow for any tax offsets if any of the following apply:

Example

An employee has weekly earnings of \$563 and, if using column 2, the amount to be withheld is \$50.

The employee claims a tax offset entitlement of \$1,000 on their Withholding declaration.

Using the Ready reckoner for tax offsets, the weekly value is \$19.

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

• Amount to be withheld on \$563 = \$50.00
• less weekly offset value –\$19.00

Total amount to be withheld = \$31.00

End of example

Tax offset entitlement – weekly value

Amount claimed
\$

Weekly value
\$

1

2

3

4

5

6

7

8

9

10

20

30

1

40

1

50

1

57

1

60

1

70

1

80

2

90

2

100

2

200

4

300

6

338

6

400

8

500

10

600

11

700

13

800

15

850

16

900

17

1,000

19

1,100

21

1,173

22

1,200

23

1,300

25

1,400

27

1,500

29

1,600

30

1,700

32

1,750

33

1,800

34

1,900

36

2,000

38

2,500

48

2,535

48

3,000

57

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 from the weekly value column.

= \$8 + \$0 + \$0

= \$8

Therefore, reduce the amount to be withheld from weekly payments by \$8.

End of example