• 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 look-up tool (XLSX, 55.8KB)This link opens in a new window.

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

    • you are using column 3
    • you are using foreign resident rates
    • when an employee does not provide you with their TFN.

    Example

    An employee has weekly earnings of $563 and, if using column 2, the amount to be withheld is $51.

    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 = $51.00
    • less weekly offset value – $19.00

    Total amount to be withheld = $32.00

    End of example

    Ready reckoner for tax offsets

    Tax offset entitlement - weekly value

    Amount claimed
    $

    Weekly value
    $

    1

    -

    2

    -

    3

    -

    4

    -

    5

    -

    6

    -

    7

    -

    8

    -

    9

    -

    10

    -

    20

    -

    30

    1.00

    40

    1.00

    50

    1.00

    57

    1.00

    60

    1.00

    70

    1.00

    80

    2.00

    90

    2.00

    100

    2.00

    200

    4.00

    300

    6.00

    338

    6.00

    400

    8.00

    500

    10.00

    600

    11.00

    700

    13.00

    800

    15.00

    850

    16.00

    900

    17.00

    1,000

    19.00

    1,100

    21.00

    1,173

    22.00

    1,200

    23.00

    1,300

    25.00

    1,400

    27.00

    1,500

    29.00

    1,600

    30.00

    1,700

    32.00

    1,750

    33.00

    1,800

    34.00

    1,900

    36.00

    2,000

    38.00

    2,500

    48.00

    2,535

    48.00

    3,000

    57.00

    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.

    = $8.00 + $0.00 + $0.00

    = $8.00

    Therefore, reduce the amount to be withheld from weekly payments by $8.00.

    End of example
    Last modified: 16 Sep 2016QC 50007