form 208

Yes, that is correct. The advantage of this strategy is it gives you extra cashflow now. If you pour that money straight back into your loan, or use it to minimse your personal debt, it will save you considerable interest on your loans over the future years.

Basically, you receive your tax return weekly instead of in one lump sum at the end of the year.

Your accountant can do it for you; they send a letter to your employer telling them to withold less tax than normal – to the value of your tax return divided into weekly repayments, or whenever you get paid. So, for example; if your tax return was to be $5,200 for this upcoming year, you receive an extra $100 in your pay packet each week if you get paid weekly.

There are 2 problems with this strategy;
1. most people are tempted to spend the extra $100 on c.r.a.p. If you receive your tax return in one lump sum, you are less likely to blow it on junk, but re-invest it back into your I.P loan or pay down personal debt (I hope).
2. the actual tax return may not be totally accurate, which means that you will need to revise it in next year's return. It could mean you owe the A.T.O more tax next year, or you may be owed more. It is not a major concern, but it can get a little messy. This is probably why most accountants are reluctant to do it and will try to talk you out of it.

If you could do with the extra cashflow to help with a neg geared property, and your tax return looks as though it will be a significant amount, I would recommend arranging the "variation" with your accountant.

No worries.
Here to help, tell bad jokes and generally annoy people – not in any particular order.

So does that mean my jokes are getting better?