Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:9:p5
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 9 (pt 5/6)
Character Range: 196879–199514

for a TFN or have 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 with us, they have 28 days to provide you with their TFN.

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

Do not allow for any tax offsets or Medicare levy adjustment. Do not withhold any amount for study and training support loans.

When your payee has a study and training support loan debt

If your payee has a HELP, VSL, FS, SSL or AASL debt, you may need to withhold additional amounts from their payments. Your payee will need to notify you of this on their Tax file number declaration or Withholding declaration.

Allowances

Generally, allowances are added to normal earnings and the amount to withhold is calculated on the total amount of earnings and allowances.

For more information on when to withhold and report on allowances, refer to Withholding for allowances.

Leave loading

If you pay leave loading as a lump sum, you need to use Schedule 5 - Tax table for back payments, commissions, bonuses and similar payments to calculate withholding.

If you pay leave loading on a pro-rata basis, add the leave loading payment to the earnings for that period to calculate withholding.

Withholding declarations

A payee can use the Withholding declaration to advise you of a tax offset they choose to claim through reduced withholding. For more information on tax offsets, refer to the section in this schedule 'Claiming tax offsets'.

Payees can also use a Withholding declaration to advise you of changes to their situation that may vary the amount you need to withhold.

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, VSL, FS, SSL or AASL debt (or changes to them)
    * entitlement to a seniors and pensioners tax offset.

When your payee provides you with a Withholding declaration, it will take effect from the next payment you make. If you receive an updated declaration from a payee, it will replace the previous one.

A payee must have provided you with a valid Tax file number declaration before they can provide you with a Withholding declaration.

Claiming tax offsets

The seniors and pensioners tax offset (SAPTO) is incorporated into this schedule. If your payee chooses