221D (new form from ATO with longwinded name)

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From: Paula Dee


Hi there,

I'm new to this forum so I apologise if this question has been asked before. My question relates to the new version of the 221D form.
My husband and I have 3 IPs and combined, the expenses are quite huge. Cash flow can sometimes be tight. Is it really worth lodging this form? Can someone give me an
example of how much extra they got in their paypacket? Im paid monthly and hubby is fortnightly. Also, does this mean that you might have to pay the taxman at the end of financial year?

Paula

 

[duncan_m]

Reply: 1
From: Duncan M


The new form can be found at:

http://www.ato.gov.au/download.asp?file=/content/professionals/downloads/nat2036w.pdf

It's not unheard of them to grant a new withholding rate of 0%

Failing to keep accurate records and being able to easily assess your tax liability could indeed result in you paying the Taxman at the end of the year, keep a very close eye on expenses and both PAYE and Rental Income.

It is absolutely worth lodging, the many $1000's of dollars tax you're not lending to the Govt for a year could save you substantial amounts of interest in the long term.. Having said that, if you have trouble saving, retiring debt or servicing new debt with the new cashflow and would blow it on doodads or lifestyle, leave it with the govt for a year

Regards.

Duncan.

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Paula

I once had lots of clients that preferred the big cheque at the end of the tax year.

What cures that really quickly is when I ask them whether they think the ATO is a charity, and whether the ATO really needs an interest-free cash flow loan.

Now that will motivate most to do the yuk paperwork.

Ta

Rolf