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Do you wish to claim entitlements to a deductible amount or tax offset for an annuity or superannuation pension?

If you have bought an annuity or superannuation pension, you may be entitled to deduct an amount when tax is calculated.

If you have an annuity or superannuation pension, you may be entitled to a tax offset.

Answer YES at this question if you wish to claim any of these entitlements. Your superannuation provider or the organisation that sold you your annuity will work out your entitlement.

Section B – to be completed by PAYER

The following information will help you comply with your pay as Tax file number declarations

If you withhold, or are likely to withhold amounts from payments to a payee, the payee may give you a completed ax file number declaration.

The amount to be withheld from payments you make to your payee is determined primarily by the answers given by the payee on a ax file number declaration. This declaration replaces the Employment declaration and Annuity and superannuation pension declaration from 1 July 2000. Valid employment declarations and annuity and superannuation pension declarations as at 30 June 2000 will continue to be valid as tax file number (TFN) declarations under PAYG.

A ax file number declaration applies to payments made after the declaration is provided to you. A later declaration provided by a payee overrides their earlier declaration.

Where a payee has given you a completed ax file number declaration you are required to complete Section B and send the original to the Tax Office within 14 days. You must retain the Payer’s copy for your records.

What if a payee advises you that they have applied for a TFN, or enquired about their existing TFN?

If a payee states at 1 of the ax file number declaration that they have applied for an individual TFN, or enquired about their existing TFN, they have 28 days to give you their TFN. If the payee has not given you their TFN within this time (unless the Tax Office tells you not to), you must withhold an amount at the top marginal rate of tax plus Medicare levy (currently 48.5%) from the payee’s payments and:

  • all leave loading payments

  • leave payments on termination of employment, that is, holiday pay, unused annual leave and long service leave, and

  • the pre-July 1983 part or the post-June 1983 part of an eligible termination payment.

What if a payee does not give you a completed ax file number declaration?

EXAMPLE 1

If a payee does not give you a completed ax file number declaration before you make a payment to that payee, you must withhold an amount from the payment at the highest marginal rate of tax plus Medicare levy (currently 48.5%).

OUR COMMITMENT TO YOU The information in this publication is current at July 2004. In the taxpayers’ charter we commit to giving you information and advice you can rely on.

If you try to follow the information contained in our written general advice and publications, and in doing so you make an honest mistake, you won’t be subject to a penalty. However, as well as the underpaid tax, we may ask you to pay a general interest charge.

We make every effort to ensure that this information and advice is accurate. If you follow our advice, which subsequently turns out to be incorrect, or our advice is misleading and you make a mistake as a result, you won’t be subject to a penalty or a general interest charge although you’ll be required to pay any underpaid tax.

You are protected under GST law if you have acted on any GST information in this publication. If you have relied on GST advice in this Tax Office publication and that advice has later changed, you will not have to pay any extra GST for the period up to the date of the change. Similarly, you will not have to pay any penalties or interest.

Make sure you have answered all the questions in section A and have signed and dated the declaration.

Give your completed declaration to your payer.

MORE INFORMATION FOR PAYEES

If you need more information about TFNs or how to complete the ax file number declaration, you can:

  • visit our website at www.ato.gov.au

  • phone 13 28 61 between 8.00am and 6.00pm, Monday to Friday, or

  • obtain a fax by phoning 13 28 60.

you go (PAYG) obligations.

EXAMPLE 2

If a payee does not give you a completed ax file number declaration within 14 days of the start of the withholding obligation you must notify the Tax Office. Do this by completing as much of the ax file number declaration as you can with the information you have. Ensure that you:

  • complete Questions 1 to 8 of Section A to the best of your ability

  • print PAYER in the signature box of Section A

  • complete Section B

  • send the original copy of the ax file number declaration you have filled out to the Tax Office within 14 days

  • retain the Payer’s copy for your records, and

  • withhold an amount at the top marginal rate of tax plus Medicare levy (currently 48.5%) from any payments to the payee.

Privacy Act 1988 – storage and disposal of TFN information. Under the TFN guidelines in the Privacy Act, you must use secure methods when storing and disposing of TFN information.

Retaining declarations – Under tax laws, if a payee submits a new ax file number declaration or leaves your employment, you must still keep this declaration for the current and next financial year.

Penalties

Penalties apply for failing to forward original copies of completed Tax file number declarations to the Tax Office.

Penalties also apply if you do not retain the Payer copy of completed Tax file number declarations for your records.

MORE INFORMATION FOR PAYERS

To apply for an Australian business number (ABN), or a withholder payer number (WPN) if not in business, phone 13 28 66.

To obtain TFN declarations, withholding declarations and PAYG withholding tax tables, you can:

  • visit our website at www.ato.gov.au, or

  • phone 1300 720 092

  • ask your newsagent (please note that not all newsagents stock

these products).

Send completed declarations to:

Australian Taxation Office

Australian Taxation Office

PO Box 795 Albury NSW 2640

PO Box 9004 Penrith NSW 2740

  • For WA, SA, NT, VIC and TAS

  • For NSW, QLD and ACT

To find out how to report data from your payroll system to the Tax Office on magnetic media, phone 1800 679 974.

If you feel this publication does not fully cover your circumstances, please seek help from the Tax Office or a professional adviser. Since we regularly revise our publications to take account of any changes to the law, you should make sure this edition is the latest. The easiest way to do this is by checking for a more recent version on our website at www.ato.gov.au

© COMMONWEALTH OF AUSTRALIA 2004

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and enquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca

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