- picklesamParticipant@picklesamJoin Date: 2004Post 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 everyoneTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213FletcherTaxMember@fletchertaxJoin Date: 2009Post Count: 31ducksterParticipant@ducksterJoin Date: 2004Post 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/4328785pwinneMember@pwinneJoin Date: 2006Post 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.
CheerspwinneMember@pwinneJoin Date: 2006Post 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
CheersFletcherTaxMember@fletchertaxJoin Date: 2009Post 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.auFinSpecMember@finspecJoin Date: 2009Post 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.