PAYG Variations - No better time ?

Discussion in 'Accounting & Tax' started by Paul@PAS, 13th Feb, 2017.

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    With all the bank changes to servicing I question if a existing investor may be better off now with a PAYG variation prior to applying for new loans. Could this help demonstrate real servicing rather than calculations that factor in negative gearing benefits that seem problematic.

    Brokers ? Your views ?
     
    Paul@PAS, 13th Feb, 2017
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    Redwing likes this.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This won't change serviceability though as lenders go on gross income.
     
    Terry_w, 13th Feb, 2017
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    But isnt tax a factor that affects servicing.
     
    Paul@PAS, 13th Feb, 2017
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Nope.
     
    Terry_w, 13th Feb, 2017
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  5. Sonamic

    Sonamic Well-Known Member

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    Either way it's still a good idea to fatten the bank account weekly via a Variation rather than wait for Xmas in July Tax Return.
     
    Sonamic, 13th Feb, 2017
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It is a good idea because you will be saving more interest - as long as you don't increase spending to match the increased cash flow
     
    Terry_w, 13th Feb, 2017
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