CTHRepealedLegislation
Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes)
Foreign residentsForeign residents
Start here
Get a plain-English read of Foreign residents
Turn the raw legal text into a practical explanation grounded in Taxation Administration Act 1953 - Withholding Schedules 2005 (2004 Budget Changes).
Foreign residents
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. There are two ways to withhold from earnings for a foreign resident:
If the payee has not given you a valid TFN, you need to withhold 47 cents for each $1 of earnings, ignoring any cents.
If the payee has given you a valid TFN, withhold the amount calculated from Foreign resident tax rates below, rounding any cents to the nearest dollar.
Foreign resident payees cannot claim 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 weekly amount to be withheld.