• Claiming tax offsets

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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 or monthly 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  

    Attention

    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.
    End of attention

    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

    Amount claimed
    $

    Weekly Value
    $

    Monthly Value
    $

    1

    -

     

    2

    -

     

    3

    -

     

    4

    -

     

    5

    -

     

    6

    -

     

    7

    -

    1.00

    8

    -

    1.00

    9

    -

    1.00

    10

    -

    1.00

    20

    -

    2.00

    30

    1.00

    2.00

    40

    1.00

    3.00

    50

    1.00

    4.00

    57

    1.00

    5.00

    60

    1.00

    5.00

    70

    1.00

    6.00

    80

    2.00

    7.00

    90

    2.00

    7.00

    100

    2.00

    8.00

    200

    4.00

    17.00

    300

    6.00

    25.00

    338

    6.00

    28.00

    400

    8.00

    33.00

    500

    10.00

    42.00

    600

    11.00

    50.00

    700

    13.00

    58.00

    800

    15.00

    66.00

    850

    16.00

    71.00

    900

    17.00

    75.00

    1000

    19.00

    83.00

    1100

    21.00

    91.00

    1173

    22.00

    97.00

    1200

    23.00

    100.00

    1300

    25.00

    108.00

    1400

    27.00

    116.00

    1500

    29.00

    125.00

    1600

    30.00

    133.00

    1700

    32.00

    141.00

    1750

    33.00

    145.00

    1800

    34.00

    149.00

    1900

    36.00

    158.00

    2000

    38.00

    166.00

    2500

    48.00

    208.00

    2535

    48.00

    210.00

    3000

    57.00

    249.00

    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: 30 Jun 2014QC 39408