The tax variation form, also known as a withholding variation form, is important for individuals or property owners to adjust the amount of tax withheld from their regular income or rental income throughout the year. By completing this form, you can receive the tax benefit immediately rather than waiting until the end of the financial year to receive a tax refund.
Here’s why the tax variation form is significant:
Cash flow relief
With the rising costs of goods and services and higher interest rates, it can be financially challenging for individuals to manage their expenses. By submitting a tax variation form, you can reduce the amount of tax withheld from your income, which means you have more money available in each pay cycle. This increased cash flow can help alleviate financial strain and provide immediate relief.
If you own rental properties, completing a tax variation form is particularly important. By adjusting the tax withheld, you can ensure that you receive the benefits of deductions and expenses related to your properties throughout the year. This helps improve your cash flow from the rental income and allows you to use the funds for property-related expenses or other investments.
Personal financial management
Even if you have only one property or haven’t experienced financial difficulties, submitting a tax variation form is still beneficial. By receiving the tax benefit throughout the year instead of waiting for a lump sum refund, you have more control over your finances. Having the money in your pocket gives you the flexibility to manage your expenses, invest, or save as per your financial goals.
In the video Kiran explains in detail how to complete the form. It should only take you 20 minutes. Also walks through a case study to show you how a client is getting over $1,000 of extra pay in their bank account every month as a consequence of filling in that tax variation form.
Step 1 : Go to your myGov account
Step 2 : Click Tax tab
Step 3 : Click Manage
Step 4 : Click PAYG withholding variation
Step 5 : Complete form
In summary, the tax variation form provides an opportunity for immediate cash flow relief and improved financial management. By adjusting the tax withheld, you can have more money available in each pay cycle or rental income period, allowing you to meet your financial needs and goals throughout the year.
For further information visit ATO PAYG Witholding Variation