Its 2021 PAYG Witholding variation time

Discussion in 'Accounting & Tax' started by [email protected], 15th May, 2020.

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  1. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Its doesnt seem like a year but its that time again. Those planning a 2021 year withholding variation need to get their act together. This year some may even really want the cashflow that a variation can bring forward.

    I just sent out our checklist and guide to clients.

    I have attached a copy of our guide which has been updated to caution some issues affecting this year like:
    • Covid 19
    • No deductions for new property under construction owned by individuals
    If anyone wants the checklist I would say email me but its just as easy to share it here. For personal use only. Can be shared but not with any alterations. And of course the checklist doesnt come with any wisdom or technical support as its intended for use with professional tax guidance.
     

    Attached Files:

    Synergy and meni like this.
  2. Synergy

    Synergy Well-Known Member

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    My partner just finished her 9 month maternity leave. The last 2 months she was receiving $0. Should we hold off on the payg? Or its more complicated then that? Very cash flow poor atm
     
  3. NG.

    NG. Well-Known Member

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    Hi Paul

    thanks for sharing.

    does it make sense doing it now given the new FY has already commenced?
     
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    NG - Yes it can. The difference is now you need to also provide year to date pay and tax withheld on pay already paid. It really comes down to whether you want to and the value involved. I often see people and recommend they DONT do a variation as its just not viable or trivial

    If Synergys wife has resumed work it may be worthwhile but depends how mauch tax is being withheld etc. Not enough info. Thats were having a taxa dviser around to bounce thought off can be helpful.
     
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  5. Synergy

    Synergy Well-Known Member

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    Paul, our IP is 50/50 ownership. Does that mean we both need to do separate payg's?
     
  6. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Only if both want to vary. I often see joint property where one taxpayer may earn less and its less viable for them so only one person varies. Our pricing is tailored so that its not twice the cost to do 2.
     
  7. Synergy

    Synergy Well-Known Member

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    Because its joint ownership does that mean we have to both do our returns through the same accountant?
     
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    No but certain data may need to be consistent and matched in each. Spouses need to report certain info on the other. I wouldnt recommend doing that. Cost wise for example 2 returns is not twice that of one.