Posted Under: Accounting and Taxation Posted On 11/06/2015
EASING THE BURDEN FOR PROPERTY INVESTORS
2015/2016 PAYG Withholding Tax Variations
Many property investors rely on tax breaks to make money on their investment, however hanging on until the end of the financial year (and until you file your return) can seriously impact your cash flow.
You can improve your cash flow by applying for a PAYG Withholding Variation. A PAYG Withholding Variation lets you receive your tax breaks each time you’re paid. You are effectively getting your deduction drip-fed through the year. Once approved, the ATO tells your employer your new tax rate, so your take-home pay effectively increases.
You need to apply for a PAYGWV each year. With the upcoming tax season fast approaching, now is the time (prior to June 30) to prepare for submission of your annual PAYG Withholding Tax Variation.
Also a reminder that if you change jobs during the year, you’ll need to put in a new application to the ATO.
For those clients that currently have an investment property and do not prepare a Tax Variation but would like to find out more please contact us.