Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)
Foreign resident payeesForeign resident payees
Start here
Get a plain-English read of Foreign resident payees
Turn the raw legal text into a practical explanation grounded in Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes).
Foreign resident payees
Foreign resident tax rates apply where a payee has answered No to the question ‘Are you an Australian resident for tax purposes?’ on their Tax file number declaration.
For foreign resident payees (for example, overseas visitors on working holidays) an amount should be withheld at a rate of 29% where a tax file number is provided, and at a rate of 47% for those who have not provided a tax file number.
Foreign resident payees cannot claim family tax benefit (FTB) or any tax offset. If a foreign resident payee has claimed FTB or any tax offsets on the Tax file number declaration, do not make any adjustment to the daily amount to be withheld.