Weekly tax table

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:

you are using column 3
you are using foreign resident tax 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 $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

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
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

Last modified: 13 Oct 2020QC 63810