employers
Understanding Your Rights & Responsibilities
as an Employer in Public Commerce
Taxpayer Status
Why You’ve Received a Taxpayer
Status Update Letter
Why You’ve Received a Taxpayer Status Update Letter
As an employer operating within the public commercial system, you may have received a notice or TFN update from an employee asserting their right to withdraw from the Australian Taxation Office’s taxpayer scheme.
This page provides the information, legal references, and historical context to support your understanding of the matter and to offer clarity on your rights and obligations under law.
The Shift Happening in the Economy
A growing number of Australians are choosing to lawfully restructure their lives and revenue streams by operating within the private domain—outside the coercive mechanisms of the public sector. This includes the lawful withdrawal of taxpayer status, the non submission of a TFN, and the refusal of tax withholding (PAYG/PAYE).
history
The History of Income Tax in Australia
Pre-1942: Income tax was administered by individual states.
1942: The Federal Government centralised tax collection as a “temporary wartime measure” under the Income Tax Act 1942.
Post-War: This “temporary” centralised taxation has never been reversed, and continues today under the Income Tax Assessment Acts of 1936 & 1997.
PAYE System Introduced: In 1944, Pay-As-You-Earn (PAYE) tax collection began for employees without constitutional referendum or vote by the people. Originally established to help support the families of Australia.
The Burden of Tax Today
$296+ billion in individual income tax is collected annually making employees the largest source of government revenue. In contrast, many large corporations and mining companies pay little to no tax, often using legal loopholes or offshore arrangements. Government expenditure includes billions spent on war, surveillance, corporate subsidies, and foreign obligations not directly benefiting the average Australian.
THIS SYSTEMIC IMBALANCE HAS LED MANY TO QUESTION:
“Is this system truly serving the people or extracting from them?”
Your Role as an Employer
Employers are not tax agents.
The Income Tax Assessment Act does not require you to enforce taxation on behalf of the ATO.
Withholding PAYE tax from an employee’s income is done voluntarily, under the presumption that the individual is a taxpayer and has a TFN on file.
If an employee has:
Revoked Power of Attorney over their TFN
Issued alawful declarationupdating their Taxpayer status
Provided an updated form of identification or lawful notice
…then you, as an employer, are not obligated to deduct tax unless you are directed to by court order or legal process (not policy).
LEGAL GROUNDS FOR WITHDRAWAL
Employees have the lawful right to withdraw
From PAYG withholding based on principles found in both domestic legislation and international human
rights frameworks.
Under Australian Law:
Nationality and Citizenship
Act 1948
Highlights the contractual nature of citizenship and the shift from subject to citizen under administrative governance, not sovereign law.
Public Sector Ethics
Act 1994
Reinforces that public service must operate with integrity, transparency, and respect for the rights of individuals — including freedom from unjust coercion.
Under International Law:
Rome Statute of the International Criminal Court
Article 7 Defines systematic financial exploitation, coercion, and abuse by governing entities as potential crimes against humanity.
Universal Declaration of Human Rights (UDHR)
Article 17: Protects the right to property and freedom from arbitrary deprivation.
Article 23: Upholds the right to work freely and fairly, without exploitation.
Article 26: Reinforces equality before the law and freedom from discrimination — including in economic participation.
Hague Convention on the Law Applicable to Trusts (1985)
Establishes the international recognition of trust relationships, affirming that individuals who are not trustees have the right to know, challenge, and withdraw from terms that disadvantage them especially where fiduciary obligations are breached.
ALBANESE GOVERNMENT & THE ICC
Recent whistleblower submissions and reports show that the Albanese government has been reported to the International Criminal Court (ICC) for breaching trust, coercive governance, and enabling financial exploitation of its people. This case is evolving and further strengthens the position of those choosing to withdraw from taxation systems.
YOUR NEXT STEPS
If you’re unsure or concerned about
this process:
01
Know that you are protected
you are not liable for withholding tax if a worker has lawfully withdrawn their taxpayer status.
02
Browse our resources
and information to make an informed decision with your employee.
03
Keep a record
of the employee’s notice and correspondence.
04
Reach out to us
at the Private Members Union for guidance or clarification.
You Have the Right to Know.
They Have the Duty to Withdraw.
The Private Members Union is here to support the lawful, peaceful, and empowered transition of individuals and businesses into the private. We honour your position and respect your inquiry. Thank you for being open to understanding this emerging pathway toward financial equity and freedom.
Start your business transition into
the Free Trade Economy.
Let’s build a better future—one where business, sovereignty, and community thrive together.
FAQs
Is it legal to ask my employer to stop withholding tax from my wages?
Yes. PAYG withholding operates on the basis of voluntary compliance. There is no law that forces you to participate. You have the lawful right to negotiate the terms of your labour and request that withholding cease. However, you must act peacefully, honourably, and in writing.
Will I get in trouble with the ATO if I stop PAYG withholding?
You may still have taxation obligations depending on your personal circumstances. This campaign is not about tax evasion. You are simply asserting your right to manage your own tax affairs directly, without automatic deductions. Many Australians self-manage their tax lawfully through private arrangements, declarations, or other structures.
Does my employer have to agree?
No — they are not automatically required to accept your request. Employers operate within public statutes and may be hesitant due to misunderstanding or fear. However, you are asserting your lawful right to renegotiate terms and beginning a peaceful, honourable dialogue. Some employers may agree easily. Others may need time and more education. We have information and resources for Employers on the Employer Info Page
Could my employer fire me or punish me?
In Australia, employers must comply with the Fair Work Act 2009, which prohibits adverse action against employees for asserting workplace rights. However, risks vary depending on the situation. That’s why documentation, clear communication, and honourable conduct are critical. If a workplace controversy occurs, you can seek advocacy through the Private Members Union (optional).
Will I still have to pay tax at the end of the financial year?
No, this puts you in a self determined tax exempt category. Your Tax Return Filing will not include any Gross Wage amounts paid under this arrangement. Should you have other sources of revenue throughout the financial year you may or may not have to lodge your tax return. You remain responsible for assessing and managing your financial affairs.
Is this tax evasion?
No. Tax evasion is the unlawful avoidance of assessed tax obligations. What this campaign promotes is lawful reform through peaceful negotiation and political pressure by reclaiming your right to manage your revenues and to negotiate the conditions of your labour.
How does this movement help Australia?
By withdrawing blind, forced compliance, we expose broken trust, push for lawful accountability, and demand reform. This campaign pressures the government to review, restructure, and correct systems that are no longer serving the people.It is a peaceful, lawful political stand for financial sovereignty and social justice.
What happens if my employer refuses my request?
If your employer refuses to stop withholding, you can:
– Accept the situation peacefully for now, or
– Continue to peacefully negotiate and educate, or
– Seek lawful support through Private Members Union advocacy (membership required only if a formal dispute arises).
You remain in control of your decision at all times.
What support is available if I need help?
General education and campaign resources are free and available to everyone. Workplace dispute support (industrial relations style) is available through optional membership in the Private Members Union if required. We are here to support peaceful, honourable action — not conflict.