Side income: ask your employer to withhold extra tax

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Request to Withhold Additional Tax From My Pay

From: [YOUR FULL NAME]

Employee number: [EMPLOYEE NUMBER]

Position: [POSITION], [TEAM OR SITE]

Email: [EMAIL]

Phone: [PHONE]

To: [PAYROLL CONTACT OR MANAGER NAME]

[EMPLOYER'S BUSINESS NAME]

[PAYROLL EMAIL OR ADDRESS]

[DATE]

Subject: Request to increase PAYG withholding — additional amount each pay

Dear [PAYROLL CONTACT OR MANAGER NAME],

I have income from another source this financial year and want to avoid a large tax bill when I lodge my return. I ask you to withhold an additional amount of tax from my pay, on top of the normal amount, as provided for in Schedule 14 of the Taxation Administration (Withholding Schedules) Instrument 2026.

Details of my request:

Item Detail

Pay frequency [WEEKLY / FORTNIGHTLY / MONTHLY]

Additional amount to withhold each pay $[AMOUNT]

First pay day this applies to [DATE]

Applies until [30 JUNE 2027 / UNTIL I TELL YOU IN WRITING]

Normal withholding unchanged — based on my current TFN declaration and the usual tax table

Please show the total amount withheld on my payslip as usual, so I can check that the additional $[AMOUNT] has been included. If you need this request on a particular form, please send it to me and I will complete it.

I understand that all amounts withheld from my pay, including the additional amounts, count as a credit against my tax once my return for the year is assessed. I can change or stop this request by writing to you.

Thank you,

____________________

[YOUR FULL NAME]

For me — side income estimate

Line Amount

Expected sales for the year $[SALES]

Less expected costs (stock, fees, postage) $[COSTS]

Expected profit $[PROFIT]

My tax rate band on top of my salary (2026–27) [RATE]% (30% if total taxable income is between $45,001 and $135,000)

Estimated extra income tax (profit × rate) $[EXTRA TAX]

Plus Medicare levy and other amounts, if any $[OTHER]

Pays left until 30 June 2027 [NUMBER]

Additional amount per pay (total ÷ pays) $[AMOUNT]

[ ] Request given to payroll on [DATE]; first payslip checked on [DATE]

[ ] Sales tracked monthly; GST turnover kept below $75,000 or GST registration within 21 days

[ ] ABN only if this is a business, not a hobby