Australian Taxation Office (ATO) tax deductions 103-08030000
Expand allThis document explains how customers can arrange, vary or cease Australian Taxation Office (ATO) tax deductions from Centrelink payments including income support payments and Parental Leave Pay (PPL). It also covers refunding excess deductions when there is an administrative error and the customer requests a refund of the tax instalment deductions or recover a debt more quickly by reducing the liability of the customer.
Tax deductions
Customers can request, vary or cease tax deductions from Centrelink payments by 
online service, phone or in writing. The customer can make a request in writing by letter or by completing an Authority to deduct tax from your payment (SU066).
Tax deductions from PPL is set at 15% by default, but customers can nominate a different tax rate between 0-50% using Online Services or by contacting by phone or in person. Note: this does not include customers receiving PPL from their employer, these customers will need to contact their employer to discuss their tax rate.
Where tax instalment deductions are taken out of a customer’s payment, the Centrelink Payment Summaries will contain the total amount of Centrelink payments and the amount of tax deducted.
The Resources page contains a link to the SU066 which is used for income support payments only.
Contents
Managing Australian Taxation Office (ATO) tax deductions
Ceasing Australian Taxation Office (ATO) tax deductions
Refunding Australian Taxation Office (ATO) excess tax deductions
Related links
Taxable and non-taxable (tax exempt) payments for Centrelink Payment Summary
Electronic transfer of Payment Summary details to the Australian Taxation Office (ATO)
Customer notifies a change of circumstances for Parental Leave Pay (PPL)