How to Manage Employee Tax File Declaration?
Is the Payee Exempt from Needing a TFN?
Your payee is exempt from quoting a TFN if any of the following apply:
Under 18 Years of Age and Low Earnings:
They earn less than:
$350 weekly
$700 fortnightly
$1,517 monthly or as a one-off payment.
Applicant or Recipient of Pensions, Benefits, or Allowances:
From Services Australia (e.g., pensions, benefits, or allowances). However, they must quote their TFN if they receive:
Newstart
Youth allowance
Sickness allowance
Austudy, Jobseeker, or parenting payment.
From the Department of Veterans' Affairs (e.g., a service pension under the Veterans' Entitlement Act 1986).
From the Military Rehabilitation and Compensation Commission.
Lodged a TFN Application or Enquiry:
If they have lodged a TFN application or enquiry with the ATO less than 28 days ago.
Possess an Interim Notice:
If the ATO has issued an interim notice that is still in force.
What is the Tax Status of the Payee?
Resident: Select 'Resident' if this applies to your payee.
Non-Resident: Select 'Non-Resident' if this applies to your payee.
Working Holiday Maker: Select 'Working holiday maker' if this applies to your payee.
Must Home Country and Foreign Country Income.
Can't select or fill in au, nf, cx, cc and hm
Has the Payee Claimed the Tax-Free Threshold?
Yes: Answer 'Yes' if you are a foreign resident receiving an Australian Government pension or allowance.
No: Answer 'No' if none of the above applies or if you are a working holiday maker.
Does the Payee Have a Study and Training Support Loan Debt?
Yes: Answer 'Yes' if you have a HELP, VSL, FS, SSL, or AASL debt.
No: Answer 'No' if you do not have such debts or if you have repaid them in full.
Is the Payee Claiming a Medicare Levy Exemption?
If the payee has not completed a Medicare levy variation declaration, choose 'No' for the Medicare levy questions.