Tax Offset Amount

(from the ATO's Business Implementation Guide)

STP Creator - MYOB Users

In STP Creator, the tax offset amount is entered on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.

STP Creator - non MYOB Users

In STP Creator, the tax offset amount is entered/selected on the Employment Details screen, accessible from the Payee Details screen.

Business Rules

The business rules for the offset amount are:

1. If the Payer captures the tax offset amount, then it must be reported.
2. The Payer must report the latest tax offset annual amount provided by the Payee on their TFN or Withholding declaration.
3. The offset amount is only valid for those Payees with tax treatment category/options of Regular/Tax Free Threshold, including those who may claim a Medicare Levy exemption.
4. A tax offset amount may not be applied for Payees with tax treatment category/options other than for Regular/Tax Free Threshold.
5. The tax offset amount should be reported as the annual amount (not a YTD amount) provided by the Payee on their TFN declaration.