• Instructions

    Terms we use

    When we say:

    • payer, we mean the business or individual making payments under the pay as you go (PAYG) withholding system
    • payee, we mean the individual being paid.

    Who should complete this form?

    You should complete this form before you start to receive payments from a new payer – for example, when you receive:

    • payments for work and services as an employee, company director or office holder
    • payments under return-to-work schemes, labour hire arrangements or other specified payments
    • benefit and compensation payments
    • superannuation benefits.

    You need to provide all information requested on this form. Providing the wrong information may lead to incorrect amounts of tax being withheld from payments made to you.

    You do not need to complete this form if you:

    • are a beneficiary wanting to provide your TFN to the trustee of a closely held trust – see TFN withholding for closely held trusts
    • have reached 60 years of age and started a super benefit that does not include an untaxed element for that benefit
    • are receiving superannuation benefits from a super fund and have been taken to have quoted your TFN to the trustee of the super fund.

    How to complete this form – payee

    Section A: To be completed by the payee

    Question 1
    What is your tax file number (TFN)?

    You should give your TFN to your employer only after you start work for them. Never give your TFN in a job application or over the internet.

    We and your payer are authorised by the Taxation Administration Act 1953 to request your TFN. It’s not an offence not to quote your TFN. However, quoting your TFN reduces the risk of administrative errors and having extra tax withheld. Your payer is required to withhold the top rate of tax from all payments made to you if you do not provide your TFN or claim an exemption from quoting your TFN.

    How do you find your TFN?

    You can find your TFN on any of the following:

    • your income tax notice of assessment
    • correspondence we send you
    • a payment summary your payer issues to you.

    If you have a tax agent, they may also be able to tell you your TFN.

    If you still can't find your TFN, you can:

    • phone us on 13 28 61 between 8.00am and 6.00pm, Monday to Friday
    • visit your nearest shopfront (phone us on 13 28 61 to make an appointment).

    If you phone or visit us we need to know we are talking to the correct person before discussing your tax affairs. We will ask you for details only you, or your authorised representative would know.

    You don't have a TFN?

    If you don’t have a TFN and want to provide a TFN to your payer, you will need to apply for one.

    See also:

    You may be able to claim an exemption from quoting your TFN.

    Print X in the appropriate box if you:

    • have lodged a TFN application form or made an enquiry to obtain your TFN. You now have 28 days to provide your TFN to your payer, who must withhold at the standard rate during this time. After 28 days, if you have not given your TFN to your payer, they will withhold the top rate of tax from future payments
    • are claiming an exemption from quoting a TFN because you are under 18 years of age and do not earn enough to pay tax, or you are an applicant or recipient of certain pensions, benefits or allowances from the
      • Department of Human Services – however, you will need to quote your TFN if you receive a Newstart, Youth or sickness allowance, or an Austudy or parenting payment
      • Department of Veterans’ Affairs – a service pension under the Veterans’ Entitlement Act 1986
      • Military Rehabilitation and Compensation Commission.
       
    Providing your TFN to your super fund

    Your payer must give your TFN to the super fund they pay your contributions to. If your super fund does not have your TFN, you can provide it to them separately. This ensures:

    • your super fund can accept all types of contributions to your accounts
    • additional tax will not be imposed on contributions as a result of failing to provide your TFN
    • you can trace different super accounts in your name.

    See also:

    Question 2–5

    Fill in your personal information.

    Question 6
    On what basis are you paid?

    Check with your payer if you are not sure.

    Question 7
    Are you an Australian resident for tax purposes?

    Generally, we consider you to be an Australian resident for tax purposes if you:

    • have always lived in Australia or you have come to Australia and now live here permanently
    • are an overseas student doing a course that takes more than six months to complete
    • migrate to Australia and intend to reside here permanently.

    If you go overseas temporarily and do not set up a permanent home in another country, you may continue to be treated as an Australian resident for tax purposes

    Foreign resident tax rates are different

    A higher rate of tax applies to a foreign resident's taxable income and foreign residents are not entitled to a tax-free threshold nor can they claim tax offsets to reduce withholding, unless you are in receipt of an Australian Government pension or allowance.

    Answer no to this question if you are not an Australian resident for tax purposes unless you are in receipt of an Australian Government pension or allowance. If you answer no, you must also answer no at question 10.

    See also:

    Question 8
    Do you want to claim the tax-free threshold from this payer?

    The tax-free threshold is the amount of income you can earn each financial year that is not taxed. By claiming the threshold, you reduce the amount of tax that is withheld from your pay during the year.

    Answer yes if you want to claim the tax-free threshold, you are an Australian resident for tax purposes, and one of the following applies:

    • you are not currently claiming the tax-free threshold from another payer
    • you are currently claiming the tax-free threshold from another payer and your total income from all sources will be less than the tax-free threshold.

    Answer yes if you are a foreign resident in receipt of an Australian Government pension or allowance.

    Otherwise answer no.

    If you receive any taxable government payments or allowances, such as Newstart, Youth Allowance or Austudy payment, you are likely to be already claiming the tax-free threshold from that payment.

    See also:

    Question 9
    Do you want to claim the seniors and pensioners tax offset by reducing the amount withheld from payments made to you?

    Claim tax offsets with only one payer
    You are not entitled to reduce your withholding amounts, or claim the seniors and pensioners tax offset (SAPTO), with more than one payer at the same time.

    If you receive income from more than one source and need help with this question, phone 1300 360 221 between 8.00am and 6.00pm, Monday to Friday.

    How your income affects the amount of your tax offset

    You must meet the eligibility conditions to receive SAPTO. Your rebate income, not your taxable income, determines the amount of SAPTO, if any, you will receive.

    Answer yes if you are eligible and choose to claim SAPTO with this payer. To reduce the amount withheld from payments you receive during the year from this payer, you will also need to complete a Withholding declaration.

    Answer no if one of the following applies:

    • you are not eligible for SAPTO
    • you are already claiming SAPTO from another payer
    • you are eligible but want to claim your entitlement to the tax offset as a lump sum in your end-of-year income tax assessment.

    See also:

    Question 10
    Do you want to claim a zone, overseas forces or invalid and invalid carer tax offset by reducing the amount withheld from payments made to you?

    Claim tax offsets with only one payer
    You are not entitled to claim tax offsets with more than one payer at the same time.

    You may be eligible for one or more of the following:

    • a zone tax offset if you live or work in certain remote or isolated areas of Australia
    • an overseas forces tax offset if you serve overseas as a member of Australia’s Defence Force or a United Nations armed force
    • an invalid and invalid carer tax offset.

    Answer yes to this question if you are eligible and choose to receive tax offsets by reducing the amount withheld from payments made to you from this payer. You also need to complete a Withholding declaration.

    Answer no to this question if you are either:

    • not eligible for the tax offsets
    • a foreign resident
    • choose to receive any of these tax offsets as an end-of-year lump sum through the tax system
    • are already claiming the offset from another payer.

    See also:

    Offsets and rebates

    Question 11 (a)
    Do you have a Higher Education Loan Program (HELP), Student Start-up Loan (SSL) or Trade Support Loan (TSL) debt?

    Answer yes if you have a HELP, SSL or TSL debt.

    Answer no if you do not have a HELP, SSL or TSL debt, or you have repaid your debt in full.

    You have a HELP debt if either:

    • the Australian Government lends you money under HECS-HELP, FEE-HELP, OS-HELP, VET FEE-HELP, SA-HELP
    • you have a debt from the previous Higher Education Contribution Scheme (HECS).

    Have you repaid your HELP, SSL or TSL debt?

    When you have repaid your HELP, SSL or TSL debt, you need to complete a Withholding declaration notifying your payer of the change in your circumstances.

    See also:

    Study and training support loans

    Question 11 (b)
    Do you have a Financial Supplement debt?

    Answer yes if you have a Financial Supplement debt.

    Answer no if you do not have a Financial Supplement debt or you have repaid your debt in full.

    Have you repaid your Financial Supplement debt?

    When you have repaid your Financial Supplement debt, you need to complete a Withholding declaration notifying your payer of the change in your circumstances.

    See also:

    Sign and date the declaration

    Make sure you have answered all the questions in section A, then sign and date the declaration. Give your completed declaration to your payer to complete section B.

    Last modified: 09 Jun 2016QC 16161