Taxation Administration Withholding Schedules 2023
Sch 4– Tax table for return to work payments
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Schedule 4 – Tax table for return to work payments
For payments made on or after 1 July 2021
This document is a withholding schedule 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.
You should 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 you must use the Tax table for working holiday makers for all payments made to them, including return to work payments.
We have a calculator to help you work out the correct amount of tax to withhold from payments to most employees. To access the calculator, refer to Tax withheld calculator.
To work out the amount you need to withhold, multiply the amount of the return to work payment by 34.5%. This rate applies to residents and non-residents.
| ExampleGeorge previously worked for IT Services Pty Ltd. Due to a shortage in IT personnel, IT Services Pty Ltd offered George a position if he would return to work for it.He was paid $18,000 to start work, in addition to his salary.The total amount IT Services Pty Ltd must withhold from the return to work payment is 34.5% × $18,000 = $6,210. |
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Withholding amounts calculated should be rounded to the nearest dollar. Results ending in 50 cents are rounded to the next higher dollar.
Tax file number declarations
The answers your employees provide on their Tax file number declaration (NAT 3092) 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 an employee, it will override the previous one.
If an employee does not give you a valid Tax file number declaration within 14 days of starting an employer/employee relationship, you must complete a Tax file number declaration with all available details and send it to us.
You must withhold 47% from any payment you make to a resident employee and 45% from a foreign resident employee (ignoring any cents) if all of the following apply:
■ they have not quoted their tax file number (TFN )
■ they have not advised you that they have applied for a TFN or made an enquiry with us.
If an employee states at question 1 of the Tax file number declaration they have lodged a Tax file number – application or enquiry for individuals (NAT 1432), they have 28 days to give you their TFN.