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Withholding declaration form from ATO
Hi Everyone
Has anyone seen this form on the ATO site before… “withholding declaration”
I have been looking into reducing tax for quite some time, as most on here have.
I stumbled across this form, i can’t even remember how, but it wasn’t a form that popped up in a standard search, i was looking for Australian equivalents to U.S forms.
It is easy to find if you search the name of the form though.
Question 7 on the withholding declaration form is “Do you want to claim or vary your tax offset by
reducing the amount withheld from payments made to you?”“Tax offsets reduce tax payable and are spread over the whole year in weekly instalments. If your payee is entitled to a tax offset, you withhold less from their pay. Your payee can claim tax offsets only if they are also claiming the tax-free threshold.”
My question is, can this be used to minimize or eliminate our income tax?
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3 Replies
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According to the ATO, the tax offsets are limited to two categories; invalid or carer, and/or zone or overseas.
I suppose you can use this to minimise tax if you are a remote or isolated invalid carer, but you will still be liable for any shortfall of tax paid on your next tax assessment.
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Thanks for replying, Saul.
Given that the tax system is a voluntary system, i wasn’t sure if this was a way to lower that voluntary amount without them actually advertising it for us.
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I was listening to Dave Champion talking about a very similar process in the US system just yesterday, so when I saw your post I thought you might have struck gold.
Keep searching mate, there’s a good chance what you’re looking for is out there hiding under some obscure and misleading form title.
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