TFN EXEMPTION
Hi There, I hope someone can help, i have looked everywhere :( I have an employee who has advised they wish to claim the tax exemption for supplying the TFN. He has a TFN number but said it was...
Forum Discussion
Hi taralouise05
A valid exemption from providing a TFN, does not exempt the employee from providing a valid TFN declaration. They are not entitled to claim the tax free threshold unless they provide the TFN declaration. In the TFN declaration they can claim to be exempt from providing the TFN, in which case you would use a default TFN as outlined in the notes to the TFN Declaration.
Without a TFN declaration you will need to deduct the max tax rate. The TFN Declaration advises what TFN to use for different categories of users who do not provide a TFN, such as 111 111 111 for someone who has applied for but not yet received their TFN. The ATO can also advise which default TFN to use when the employee is exempt.
Regards
Gavin
