Instructions to help you complete the attached declaration
Section A – to be completed by PAYEE
Your tax file number (TFN)
It is not an offence not to quote your TFN. However, if you do not provide your payer with your TFN or claim an exemption from quoting your TFN, your payer must withhold 48.5% (the highest marginal rate plus Medicare levy) from any payment to you.
Your TFN is usually on any papers sent to you from the Tax Office, such as last year’s income tax notice of assessment.
Phone 13 28 61 if you:
cannot find your TFN or are not sure you have one. You will be asked for information about your identity and, if you have a TFN, we will provide it to you.
have never had a TFN. You will be advised to complete a ax file number application or enquiry for an individual (NAT 1432).
If you have lodged a ax file number application or enquiry for an individual or made a phone or counter enquiry to obtain your TFN, print X in the appropriate box at this question. Your payer will withhold an amount at the rate of tax applicable to a TFN having been quoted. If your payer does not have your TFN after 28 days, they must withhold 48.5% from future payments to you.
You are exempt from quoting your TFN if:
you are under 18 and earn below $6,000 a year, or
you receive certain Centrelink pensions, benefits or allowances or a service pension from the Department of Veterans’ Affairs. However, you must quote your TFN if you receive Newstart, sickness allowance, special benefit or partner allowance.
Print X in the appropriate box at this question if you are claiming an exemption.
Do you authorise your payer to give your TFN to the trustee of your superannuation fund?
You can authorise your payer to provide your TFN to the trustee of your superannuation fund or to your retirement savings account (RSA) provider. However, you are not required to do so. Giving your TFN to your superannuation fund will make it much easier in future to trace different superannuation amounts in your name so that you get the maximum benefit when you retire. It can also help in calculating a lower tax liability on an eligible termination payment.
If you need help in deciding whether you can claim the tax-free threshold, or which payer you should claim the threshold from, phone 13 28 61 between 8.00am and 6.00pm, Monday to Friday.
If you are claiming the tax-free threshold from another payer – and you wish to change this – you must complete a Withholding declaration (NAT 3093) to advise that payer you no longer wish to claim the tax-free threshold.
If your income comes from more than one payer and you consider that claiming the tax-free threshold with only one payer would lead to a large credit at the end of the income year, you may be eligible to vary the prescribed withholding rate. To be eligible, you must be able to estimate your taxable income for the whole income year. For more information, phone 1300 360 221, between 8.00am and 6.00pm, Monday to Friday.
Are you claiming a reduced rate of withholding for either family tax benefit or Senior Australians tax offset?
Family tax benefit (FTB)
You can claim FTB if you are an Australian resident (for family assistance purposes) who cares for an eligible child and your family’s adjusted taxable income is below $84,023, plus $3,358 for each child after the first. If your family income is more than $84,023, you may be eligible for a reduced benefit.
You can receive FTB as a fortnightly payment from Centrelink or as an end-of-year lump sum through the tax system.
Answer NO at this question if you choose to receive FTB as:
a fortnightly payment from Centrelink, or
an end-of-year lump sum through the tax system but without any
reduction in the rate of tax deducted from your pay during the year.
Answer YES at this question if you choose to receive an end-of-year lump sum through the tax system and have a reduced rate of tax deducted from your pay during the year. You will also need to complete a Withholding declaration (NAT 3093) (see ‘Varying your withholding rate’).
It is against the law to reduce your withholdings with more than one payer at the same time.
Your superannuation fund needs your TFN when reporting information on your superannuation contributions to the Tax Office. Without your TFN your surchargeable superannuation contributions may be subject to the maximum surcharge rate.
3, 4, 5, & 6 Your details See the declaration form.
On what basis are you paid?
If you are not sure of the basis of your payment, check with your payer. If you select ‘Superannuation pension or annuity’ as your basis of payment, make sure you complete question 13.
Are you an Australian resident for tax purposes?
If you need help in deciding whether you are an Australian resident for tax purposes, phone 13 28 61.
If you are not an Australian resident for tax purposes, you must answer NO at questions 9 and 11 (unless you are entitled to a zone tax offset).
Are you claiming the tax-free threshold from this payer?
The tax-free threshold is available to all Australian residents for tax purposes. This means that the first $6,000 of income earned each year is not subject to tax.
You can only claim the tax-free threshold from one payer at a time. Generally you should claim the tax-free threshold from the payer you expect will pay you the most during the year.
You must still lodge an FTB tax claim at the end of the income year or you may incur a tax debt.
Senior Australians tax offset
To qualify for the Senior Australians tax offset, you need to meet a number of conditions. These are:
(a) Age At 30 June 2005 you will be:
a male aged 65 years or more or a female aged 62.5 years or more, or
a male veteran or war widower aged 60 years or more or a female
veteran or war widow aged 57.5 years or more.
If you are unsure if you are a veteran, war widow or war widower, or if you qualify for the earlier veteran pension age, phone the Department of Veterans’ Affairs (DVA) on 13 32 54.
Eligibility for Commonwealth age pension or similar type payment
you received a Commonwealth of Australia government age pension or a pension, allowance or payment from DVA at any time during the 2004–05 income year
you did not receive a Commonwealth of Australia age pension because you did not make a claim or because of the application of the income test or the assets test, but you have a qualifying ground that makes you eligible for the age pension, or
you are a veteran who is eligible for but did not receive a pension, allowance or payment from DVA because you did not make a claim, or because of the application of the income or the assets test.
If you receive any taxable Centrelink payments or allowances such as Newstart, Austudy or Youth Allowance you may have already claimed the tax-free threshold with Centrelink.
(c) Income threshold You satisfy the income threshold that applies to you:
you did not have a spouse (married or de facto) and your taxable
income was less than $38,340