2019 Year PAYG Variations

The ATO are open to accepting PAYG Variations for the 2019 tax year. No changes to the software and this means the following problems remain :

• No iOS / Mac devices
• No Chrome or Mozilla
• Microsoft Edge doesnt work either

Internet Explorer remains the browser of choice.

Lodge between now and 30 June and no payslips are required to determine year-to-date earnings.

For those unfamiliar with the concept....A PAYG variation allows a taxpayer to estimate their 2019 year tax position in advance of doing a tax return. Typically if say you have neg gearing losses from property lets say of $30K. The variation allows you to reflect some or all of the neg gearing so less tax is deduction from pay each pay period. One or both owners of property can each do one.

Need to weigh up whether is worth doing. Some like a year end refund. See it as savings. Also if using a tax adviser to assist, then weigh up cost v's benefit.

Our tax checklist for variation is attached which also provides some further information about variation. It can be used by DIY variation preparers to get organised or shared with your tax adviser provided NO alterations are made.

 

Hi Paul,

Please excuse my naive questions, but:

- I thought payg variations were a form submitted to the payroll of the individuals business? Not through ATO systems.
- If it is submitted via ATO systems, how does it make its way back to your company who will eventually vary your payments?

Thanks!
Toby

 

No this is to do with your PAYG from your investment returns on top of your job
I pay PAYG every 3-6month to ATO, they send me a bill and I pay and it gets offset at tax time on total amount I pay at FY end ....if you negative gear you got nothing to pay but I get a lot of share dividend and always positive gear.

 

Employers are not permitted to reduce tax withheld and may only increase it on request by a employee. Only the ATO can authorise a reduction. That is what this process does.

The ATO write to the employer and tell them how much to withhold eg 10%. Instead of the scale tax.

The PAYG Variation process described by PandS is another system - confusingly also PAYG but called PAYG Instalments (years ago called provisional tax). The ATO issues notices to pre-pay a quarterly (or annual) instalment of tax to taxpayers who have untaxed income in prior returns and they assume it occurs again. These taxpayers can adjust the instalments if they think its too much and its also called a PAYG Instalment Variation. Confusing eh.

 

How much time does it take roughly to lodge one of these for a standard PAYG employee with a couple of IPs?

 

1-2 minutes. However the preparation and the quality of the data input takes a bit longer