Document ID: chunk:federal_register_of_legislation:F2024L00664:clause:1_948:p4
Version: federal_register_of_legislation:F2024L00664
Segment Type: clause
Provision Reference: sch 1 cl 948 (pt 4/5)
Character Range: 74628–77363

* If they have not given you a valid TFN, use Scale 4.
Foreign residents cannot claim tax offsets to reduce withholding. If your foreign resident employee has claimed a tax offset on the Withholding declaration, don't make any adjustments to the amount you withhold.

Withholding declarations

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, VSL, FS, SSL or AASL 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.

Claiming tax offsets

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, fortnightly, monthly or quarterly amount, refer to the section on 'Tax offsets' in this schedule.

Do not allow for any tax offsets if any of the following apply:
    * where no tax-free threshold is claimed
    * you are using foreign resident rates
    * when an employee does not provide you with their TFN.

When your employee has a study and training support loan debt

If your employee has a HELP, VSL, FS, SSL or AASL 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.

Next step:

To calculate additional withholding amounts for:
    * HELP, VSL, FS, SSL or AASL debts, refer to either:
    –      Study and training support loans weekly tax table
    –      Study and training support loans fortnightly tax table
    –      Study and training support loans monthly tax table
    * Statement of formulas, refer to Schedule 8 – Statement of formulas for calculating study and training support loans components.

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