Schedule 29 – Tax table for payments made under voluntary agreements
For payments made on or after 1 July 2013.
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of schedule 1 to the Taxation Administration Act 1953. It applies to withholding payments covered by section 12-55 of schedule 1.
Who should use this table?
You should use this tax table if you make payments to an individual under a voluntary agreement to withhold.
- For a full list of tax tables, refer to Tax tables.
- Alternatively, our calculator can help you work out the correct amount of tax to withhold from payments to most payees. To access the calculator, refer to Tax withheld calculator.
How to work out the withholding amount
To work out the withholding amount, you need to assess whether the payee has informed you of their Commissioner’s instalment rate (CIR) and whether the amount includes GST.
If the payee has informed you of their CIR
If the payee has informed you of their CIR, use the following to work out how much to withhold:
- If the payee’s CIR is greater than or equal to 20% – withhold the amount worked out by multiplying the amount of the payment by the CIR.
- If the payee’s CIR is less than 20% – withhold the amount worked out by multiplying the amount of the payment by 20%. However, if your voluntary agreement with the payee states that their CIR will apply, you must withhold the amount worked out by multiplying the amount of the payment by the CIR.
If the payee has informed you that they don't have a CIR
You must withhold 20% of the amount of the payment.
If the payment includes an amount for GST
If the payment includes an amount for GST, you exclude this GST amount when calculating the appropriate rate to withhold.
Francesca is a marketing consultant who receives income from many sources. She has a voluntary agreement to withhold with Ashfield Accounting (her largest payer) and they have agreed to use her CIR of 16.44%.
Ashfield Accounting calculates the amount to be withheld by multiplying the amount of each payment (excluding any GST component) by 16.44%.
If Francesca and Ashfield Accounting did not have an agreement to use her CIR, the rate of withholding would be 20%.
End of example
Rounding of withholding amounts
Withholding amounts calculated by applying this table should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.
Last modified: 08 Sep 2016QC 34730