Can you vary the STSL deduction amount
I have selected No Tax Free Threshhold/STSL as per the Employee's TFN Declaration. He has advised that the amount being deducted is too high for the student loan and the ATO told him I should be abl...
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hi Simonev88351
He either hasn't listened to them correctly or whoever he talked to didn't explain the process correctly.
He has to apply to them for a withholding variation. Once he receives the letter or email from them confirming the amount to withhold he then needs to give you a copy of it.
You then go to his card, choose taxes, then drop down the choices to withholding variation and enter the amount that the ATO have advised there. Keep the letter/email on file for proof of why it has been changed. DO NOT change this until you have the proof of why. The employer CAN NOT just change the amount deducted on an employee's advice alone.
If however, he thinks that his debt was small enough that it would be repaid with what has been taken out so far this year, he can always give you a new tax file dec stating that he has no STSL debt and wish to claim the tax free threshold. That way you will also be covered if he is undertaxed at end of year.
