Schedule 4 – Tax table for return to work payments

Using this schedule

This schedule applies to payments made from 1 July 2026.

This withholding schedule is made by the Commissioner of Taxation in accordance with sections 15–25 and 15–30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). It applies to withholding payments covered by section 12–50 of Schedule 1 to the TAA.

Use this schedule if you pay an individual to resume working for, or providing services to, you or any other entity.

If you employ individuals under a working holiday makers visa, use Schedule 15 – Tax table for working holiday makers for all payments made to them, including return to work payments.

Use the Tax withheld calculator to help you work out the correct amount of tax to withhold from payments to most payees.

Working out the withholding amount

To work out the amount you need to withhold, multiply the amount of the return to work payment by 32%. This rate applies to residents and non-residents.

Rounding of withholding amounts

Withholding amounts calculated using this schedule are rounded to the nearest dollar. Results ending in 50 cents are rounded up to the next dollar. If a TFN is not provided, ignore cents when calculating withholding amounts.

Tax file number (TFN) declarations

The answers your payee provides on their Tax file number declaration help determine the amount you need to withhold from their payments. A Tax file number declaration applies to payments made after you receive the declaration. If you receive an updated declaration from a payee, it will override the previous one.

If a payee does not give you a valid Tax file number declaration within 14 days of starting a payer-payee relationship, you must tell us by:

• providing employment and tax information about your payee in your STP Phase 2 reporting and including the applicable tax treatment code beginning in ‘N’, or
• completing a Tax file number declaration form with all available details of the payee and sending it to us.

When a TFN has not been provided

You must withhold 47% from any payment you make to a resident payee and 45% from a foreign resident payee (ignoring any cents) if all the following apply:

• they have not quoted their TFN
• they have not claimed an exemption from quoting their TFN
• they have not advised you that they have applied for a TFN or made an enquiry with us.

If a payee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals, they have 28 days to give you their TFN.

If the payee has not given you their TFN within 28 days, you must withhold 47% from any payment made to a resident payee and 45% from any payment made to a foreign resident payee (ignoring any cents) unless we tell you not to.

PAYG withholding publications

For all PAYG withholding tax tables and other PAYG withholding publications, see:

• Tax tables
• PAYG withholding.