All Topics / Finance / PAYE change with work

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  • Profile photo of DraconisVDraconisV
    Join Date: 2006
    Post Count: 319

    In investing everybody(well not everybody) generally sees what they can claim on tax and contacts the ATO and then changes the amount of tax they pay each year by recieving like a little bit each week or so instead of the lump sum when the new financial year starts.
    So my question is, can you contact the ATO and tell them not to take any money out for tax and thus make you have a debt to pay the ATO in the new financial year. But with this extra money that you are accumulating over the year that you would normally pay in tax is put in a savings account(e.g.ING DIRECT). You then would earn alot of interest on it, and then when you have to do the tax you only pay back the amount that you should have payed before.
    Thus you are gaining an invisible income with which you can you to generate interest. The only benefit at the end is the interest as thge principle(the tax you get each week back) has to be payed back when tax is done.

    Is this a viable and practical option to gain some interest(free-money)???

    I am getting so creative, that i didn’t know if i should put this in the creativity forum or the finance, but as it include tax and stuff its here in finance. Hope to hear what everyone has to say. Thanks.

    Regards Christopher Fife.

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    Good try Christopher, but the ATO is aware of people wanting to keep their tax money as long as possible. I think there are penalties if you submit a variation of tax thing and at the end of your you figures are out by more than X% (maybe 20%).

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    Profile photo of DraconisVDraconisV
    Join Date: 2006
    Post Count: 319

    Dam, thats another idea down the drain.
    I’ll just have to keep trying…..

    Profile photo of joshadelsajoshadelsa
    Join Date: 2006
    Post Count: 53


    I think you can get a variation authorised which allows your payroll to adjust your tax however I think you need to get an accountant to calculate tax deductions such as depreciation, interest etc and then submit the variation. But yeah Terryw is rite you can get into a bit of trouble if your calculations are wrong, thats why accountant might be better to organise it for you.

    good luck


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