An employee may use a Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding from you.
Employees can also use a Withholding declaration to advise you of any changes to their situation that may affect the amount you need to withhold from their payments.
Changes that may affect the amount you need to withhold include:
- becoming or ceasing to be an Australian resident for tax purposes
- claiming or discontinuing a claim for the tax-free threshold
- advising of a HELP, SSL, TSL or Financial Supplement debt, or changes to them
- entitlement to a seniors and pensioners tax offset.
When your employee provides you with a Withholding declaration it will take effect from the next payment you make. If you receive an updated declaration from an employee, it will replace the previous one.
An employee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.
When your employee has a HELP, SSL, TSL or Financial Supplement debt
If your employee has a HELP, SSL, TSL or Financial Supplement debt, you may need to withhold additional amounts from their payments. Your employee will need to notify you of this on their Tax file number declaration or Withholding declaration.
Work it out
To calculate additional withholding amounts for:
- HELP, SSL or TSL debts, refer to either
- Financial Supplement debts, refer to either
- Statement of formulas, refer to
Employees who are entitled to a reduction of Medicare levy or do not have to pay the Medicare levy because of low family income, will not have to make a compulsory HELP, SSL, TSL or Financial Supplement repayment for that year. The exemption from making a compulsory HELP, SSL, TSL or Financial Supplement repayment may be claimed on the Medicare levy variation declaration.
Last modified: 16 Sep 2016QC 50006