All Topics / Legal & Accounting / Stopping PAYG?

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of picklesampicklesam
    Participant
    @picklesam
    Join Date: 2004
    Post Count: 55

    Hi all, is there anyway I can stop PAYG tax? Im thinking if i do that i can put more $$$ into my PPOR loan and have a big tax bill at the end of the year instead?
     
    have a great weekend everyone

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Yes there is a way to stop paying tax and that is to earn less than $15,000 pa

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of FletcherTaxFletcherTax
    Member
    @fletchertax
    Join Date: 2009
    Post Count: 31

    You can vary your PAYG but it only gets cancelled/stopped by the ATO dependent on your profits/earnings upon lodgement of your next tax return.

    Fletcher Tax Accountants
    http://www.fletchertaxaccountants.com.au

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    But if you get the calculation wrong on the section 15/15 tax variation form form you will pay penalties to the ATO or can go to jail.
    see posting for tax office website links
    https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4328785

    Profile photo of pwinnepwinne
    Member
    @pwinne
    Join Date: 2006
    Post Count: 81

    little bit melodramatic duckster

    I've been running a variation for years.

    I do a quarterly check on myself. If I've overquoted I contact the ATO and they give you Bpay account to 'top up' your tax; should you need to. I've only has this issue with extra large bonuses from work and some excellent wins on the ASX.

    I've found the ATO to be genuinly helpful with variations, in fact I think they'd prefer it if we all did one.

    Cheers

    Profile photo of pwinnepwinne
    Member
    @pwinne
    Join Date: 2006
    Post Count: 81

    I should add that duckster is however correct – ANY misleading information provided to ATO, variation or not, leaves you open to prosecution; especially if you knowlingly do it.

    variations are an excellent way to reduce you PAYG tax legit.

    See an accountant on how to do it; I am not one :)

    Cheers

    Profile photo of FletcherTaxFletcherTax
    Member
    @fletchertax
    Join Date: 2009
    Post Count: 31

    Yes penalties may apply if your over 10% of the estimate you gave/varied, but you can top up as you go if you see a particularly sensational quarter/change in circumstances.

    I would suggest to be conservative in your estimates and leave room for unexpected income and expenses within your variation.

    Fletcher Tax Accountants
    http://www.fletchertaxaccountants.com.au

    Profile photo of FinSpecFinSpec
    Member
    @finspec
    Join Date: 2009
    Post Count: 137

    Are we right to assume that you're not self employed?  Fletcher Tax is right, you should be conservative and leave some room.  If you do go hard and trying and get as much back, just be prepared if you get wrong, as you'll need to come up with more money.  Don't hinge your future cash flows (and gearing levels) on the additional cash flow, as that can change in a heartbeat.

    Profile photo of ajaydee73ajaydee73
    Participant
    @ajaydee73
    Join Date: 2009
    Post Count: 36

    May as well pay your tax bill up front. There's no point in fooling yourself how much cash you have available.

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