If you receive multiple change notifications for an employee, the last notification replaces all previous notifications. Keep a copy of the change notice with your business records for five years. For more information, see PAYG Withholding – Changing Your PAYG Holdback You will receive a class change notice for all ABC Pty Ltd employees, and the prescribed retention rate has been changed to 15% of gross payments shown as wages and salaries. The main purpose of changing your withholding tax rate or amount is to ensure that the amount withheld during the income year best matches your tax at the end of the year. For example, you can request a change if the standard source deduction rate at the end of the income year results in a significant credit because your tax-deductible expenses are higher than normal. If one of your beneficiaries wants to further increase the amounts withheld, they must request an upward variation. Sue is a salaried employee who uses her own vehicle for business purposes. His payer pays him an annual allowance of $10,000. Sue estimates that her tax-deductible annual car expenses will be $9,000.

She can request a change so that her payer deducts taxes of only $1,000 from her allowance. Declaration of Retention Payment Top Copy Amendment Form Complete this declaration to authorize your payer to increase the amount withheld from payments made to you. Before you can file a withholding tax return, you must provide or have your payer complete a tax identification number (NAT 3092) (or an employment or pension return completed before July 1, 2000), in which you provide your tax number or request an exemption from the information. The information contained in the completed form “Declaration of Detention Upward Deviation” must be treated as sensitive. n Follow the instructions to help you complete this declaration. n Print carefully in CAPITAL LETTERS and use a black or dark blue pen. n Print X in the appropriate fields. Section A: Declaration of the beneficiary to be completed by the beneficiary. 1 What is your name? Name Title: Mrs. Mrs. Other first names 2 What is your date of birth? 3 What is your tax number (TFN)? Day Month Year If you did not specify your TFN, indicate if any of the following applies: I submitted a TFN request. I am asking for a tax exemption because I am retired.

For more information, see “Privacy” at the beginning of the instructions. I am applying for an exemption because I am under 18 and I do not earn enough to pay taxes. 4 Are you a tax resident of Australia? Yes No You must answer no to question 5. 5 Do you ask this payer for the tax exemption threshold or would you like to use it? Yes No 6(a) Do you have an accumulated HELP (Higher Education Loan Program) debt? Yes No (b) Do you have additional accumulated financial debt? Yes No 7 Do you want to increase the rate or amount withheld from payments made to you? You must conclude the upward variation agreement. As stated in the Agreement, I choose that my payer: (a) withhold the amounts of payments made to me at the OR rate (b) the amount that would otherwise be withheld from This applies to payments made to me from the payment period of the month Of Yes, month No $. . %. 00 per payment. I understand that the different rate or increased amount will only apply to payments made to me from the date indicated above, if this results in a higher withholding tax than would otherwise be the case in the PAYG withholding tables or by regulation for the relevant withholding tax event. BENEFICIARY DECLARATION I declare that the information I have provided on this form is true and correct. Beneficiary signature Tax laws provide for high penalties for false or misleading information.

Date Day Month Year NAT 5367‐07.2013 Sensitive (after completion) If there are fewer than six beneficiaries, each beneficiary must request the change of their own name using the PAYG Short (NAT 5425) hold change application. If a group of your beneficiaries wants an identical variant, you can request a class variant on their behalf. For example, your beneficiaries` source deduction may be too high if they receive an allowance and their expenses related to that deduction are reasonably expected to be deductible on their tax returns. Granting a change does not mean that we have accepted the tax treatment of income and deductions in your application – your actual tax liability will be established when you file your tax return. Under tax law, you must keep records of your relevant income and expenses for at least five years. If we approve a downward variance, the divergent withholding rate or amount will begin on the next available pay day after you receive notice of change in retention from us. Your beneficiary must obtain our consent to reduce the amount you would normally withhold by completing an application to change the PAYG withholding tax. If there is to be an additional salary cycle during the fiscal year, employees should be informed of the potential deficit at the beginning of the fiscal year. Your employees may want to make an upward variation. A change notification can only be withdrawn by us. If your beneficiary would like to have their change notice withdrawn before the expiry date, ask them to write to us at the address indicated on their approval letter.

If you submit an electronic variant instead of a paper application, the processing time of the application will be reduced. You will not be able to change the retention rate until you receive an official change notice from us. See the links below for policies, variation forms and withholding tax calculators to increase the PAYG. John is a real estate seller who is paid on commission. He owns a rental property. John`s annual gross income from his sole payer is $45,000. He estimates that his loss of rental property will be $15,000. His estimated taxable income will therefore be $30,000 ($45,000 to $15,000). John can request a change to have his withholding tax rate calculated based on his estimated taxable income of $30,000. You can submit the request for a class variant by letter, which is displayed on your company`s letterhead. If you wish to vary your withholding amount downwards, you must submit a request to change the PAYG withholding tax.

An upward deviation occurs when an employee requests to increase the PAYG deducted from their salary every week or fourteen days in order to avoid an ATO bill at the end of the fiscal year. If you believe that your situation justifies a difference in the rate or amount of withholding tax, you must determine whether the difference is increasing or decreasing. If your employee notifies you that they are liable for the Medicare tax surcharge or that they are entitled to a discount or exemption from the Medicare levy, they must complete the Medicare Tax Change Return. .