What if a TFN declaration is not provided?
You must withhold at the top marginal tax rate plus Medicare levy (currently 46.5%) from any payment you make to an individual who is a performing artist (ignoring any cents) if one of the following applies:
- they have not quoted their tax file number (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 about this.
If the individual states at question 1 of the Tax file number declaration that they have lodged a Tax file number - application or enquiry for individuals (NAT 1432) with us, they have 28 days to provide you with their TFN.
If the individual has not given you their TFN within 28 days, you must withhold at the top marginal rate plus Medicare levy (currently 46.5%) from any payment you make to them (ignoring any cents).
You engage a 25 year old model to perform at a modelling event and they have not provided you with a TFN declaration nor claimed an exemption from quoting their TFN. A modelling fee of $3,780 is due to be paid.
You must withhold at the rate of 46.5% on the payment due, which is $1,757 (that is, $3,780 x 0.465, disregarding any cents in the withholding result). The individual will receive a net payment of $2,023 and an amount of $1,757 is withheld and sent to us.