PAYG Variation - NRAS

Hello,

Does anyone know how you enter your NRAS credit for the PAYG variation now. Seems they have changed the system?

Cheers

 

NRAS credits have never been a consideration in the witholding calculaltions. It only applies to WITHHOLDING. These credits are available after March 2022.

NRAS credits may not be given for example. Many NRAS projects are now starting to lose entitlement so advance claiming is a risk.

 

Thanks for your reply Paul but I have doing this for a number of years and paying no PAYG withholding based on the NRAS credits. Have talked to the ATO about it when they queried and it was no issue. You do need to explain what NRAS in to most ATO staff though. I know when my NRAS time is up so i only intent to put them in until the end of their life. Their is always a slight chance of NRAS getting rejected for a particular year but its unlikely and not something one would anticipate.
All I want to know is where to put them in the new form via MyGov.
Cheers

 

There has not been a field in the old process to enter tax credits arising from NRAS etc. Or franking credits as an example. These are matters that dont influence tax on withholding which only losses for example can do. Even if a refund could be due. That refund element is only available on lodgement. A variation is not intended to produce a pre-estimate of a taxpayer complete tax position. eg withholding can vary to $0 or 0%

I suppose you could engineer a outcome by including a gross up of the value of NRAS credits as a other property deduction and explain in comments. ie "Value of NRAS tax credits" so you may enter a $8K NRAS credit as say a $15094 other deduction (based on $8k/.53%) based on a top marginal rate of 47% as an example. You may find ATO call to discuss.

Note too that once the net income is low enough it wont matter whether there is a NRAS credit included in full. The lowest variation is $0.

Then that may bring witholding to $0.

 

Its a tax offset, if the amount of your tax offset exceeds the estimated tax payable it should vary you to 0. That's what ATO said it do which i did and it has worked fine.

Looking further at the Mygov one it looks like want a heap of information like every rental property address, date you purchased it, date of construction etc They have most of this in the annual tax return but is any imported into this?

Its it possible to use the old method still or is that gone?

 

Also been doing it for a number of years (atleast 5 years) no issues. Sometimes I get a call and they say I put it in the wrong box.

 

The ATO have decommissioned the VERY OLD script based lodgement. Once the new process is used it may be possible prior year data will prefill in the future so a simple "have any of you properties changed?" question will occur. This was a feature of the old form. The property and date and ownership information is available in a copy of the 2021 variation and also your 2020 tax return.

This new form reflects the ATO adopting a property database that is tied to actual titles.

 

The new system seems to be very painful as well. Doesnt carry your details over from the previous year. Very annoying to enter employment and houses etc again especially when you enter them and it doesn't save. Also a bit vague about where the NRAS goes

 

The ATO replaced the variation which was decades old and only used a unsupported browser. The details are required the first time. Thereaftre its actually much easier.

A tax return and variation are different matters. One projects a forward estimate and the other reports past actual expneses and income. . A variation may reflect change property use, new acquisitions or even disposals.