MustInkJustice
New Member
What are the pros & cons of a PAYG tax withholding variation please.
Should I Apply for a PAYG Tax Withholding Variation? Pros & Cons?
- Thread starter MustInkJustice
- Start date
BuzzWildTech
New Member
You get your refund throughout the year assuming you're entitled to one!
In other words, you're taxed less each pay, but you get zero refund at year end if you estimated everything right.
When I did this? That extra money stayed in my mortgage offset, cutting down interest payments.
In other words, you're taxed less each pay, but you get zero refund at year end if you estimated everything right.
When I did this? That extra money stayed in my mortgage offset, cutting down interest payments.
QuantumOtter
New Member
Pro: You keep more cash on hand now rather than waiting.
Con: If you miscalculate or your income changes, you could owe taxes later.
Con: If you miscalculate or your income changes, you could owe taxes later.
FlashyFlange
New Member
Hey, it's FA here. Just wanted to chime in and say I totally agree with both colleagues. The only extra thing to think about is how much time the whole process eats up I mean from the very start to finish. It's not just the back and forth between the tax office and your employer, it’s also getting all your ducks in a row, prepping, and figuring out the right variation amount. Basically, you're trying to guess your income and deductions before they even happen. And honestly, depending on your job or your investments, that can get a bit rticky to nail down.
cryptostrikesback
New Member
Keep more of your money. The government doesn't need your interest.
Lostinthedigital
New Member
Still paying same tax at the end.... this is hardly the way to get rich.
You'll pay the same total tax either way.
Instead of a $50k tax refund, you take home an extra $1k in each paycheck. You or your accountant just files a form with the ATO, and they'll notify your employer about your updated tax rate.
It’s a solid move for improving cash flow.
Instead of a $50k tax refund, you take home an extra $1k in each paycheck. You or your accountant just files a form with the ATO, and they'll notify your employer about your updated tax rate.
It’s a solid move for improving cash flow.