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CDEP and Tax |
  
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CDEP and Tax |
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For CDEP only payments no tax is required to be withheld and no TFN declaration is required.
For CDEP and non-CDEP Payments withholding amounts. Combine the CDEP & Non-CDEP payments, then calculate the withholding on the whole amount then subtract the withholding reduction from the tax to be paid.
Effective 1 November 2004 the Commissioner of Taxation (ATO) has varied the amount of tax to be withheld from payments to CDEP workers.
Extract from PAYG withholding for CDEP NAT 1205-9.2004
The Commissioner of Taxation has varied the amount to be
withheld from payments to workers who receive CDEP
payments. The variation takes effect from 1 November 2004.
This means that there are different withholding requirements
for workers who only get CDEP payments and for workers
whose wage is made up of both CDEP and non-CDEP
payments.
To manually calculate the tax to be withheld for CDEP and non-CDEP payments made.
Example
Albert's weekly wage is made up of a $200 CDEP payment and a $230 non-CDEP payment.
He has claimed the tax-free threshold on his TFN declaration and does not receive leave loading.
Weekly gross amount: $200 + $230 = $430
Using Pay as you go (PAYG) withholding tax tables - weekly (NAT 1005) Total weekly earnings – column 1: $430 In this example we use column 3 to determine the amount to withhold: $63
Using the CDEP Calculation Table find the CDEP payment: $200
Using the CDEP Calculation Table find the withholding reduction amount in column B: $14
Subtract step 4 from step 2: $63 - $14 $49
$49 is the amount to withold as PAYG tax