PAYG Income Tax Withholding Variation Application (ITWV)
- Thread starter val1239
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you download the form from the ATO, fill out your detials & post it off. They work out how much tax you should pay for the financial year and instruct your work's payroll to charge more/less till the end fo the financial year accorgingly. You receive a letter telling you how much the adjustments are etc.
Seems to be pretty quick, I beleive you can send in a new form up to every month
Seems to be pretty quick, I beleive you can send in a new form up to every month
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The ITWV is the greatest cash flow tool for PAYG investors. Instead of waiting a year for a return, based on negative gearing losses, the tax benefits are realised each pay cycle by way of a reduced tax rate.
I like to understate mine a little so I get a tax return. It's a bit of a long standing tradition of mine that I do certain "fun" things with my annual return, so I like to maintain the tradition.
It's also good to have a bit of a buffer in the ITWV figures in case you get unbudgeted rent increases or rate rises during the year. The ATO don't like it if they give you too much tax relief during the year and have to ask for some back when you lodge your return.
OK so how do i calculate what my rate should be then?
my husband is about to change jobs and income levels (and tax rates) will be changing. this is happening in May.
also, as of next week or so we should have our first IP rented!
so there are a couple of changes going on all at once and i would like to make sure that i am making the most of the PAYG!
thanks
my husband is about to change jobs and income levels (and tax rates) will be changing. this is happening in May.
also, as of next week or so we should have our first IP rented!
so there are a couple of changes going on all at once and i would like to make sure that i am making the most of the PAYG!
thanks
The ATO work out the rate. You just provide details of income, rent., interest and other expenses plus depreciation etc.
I provide accurate fugures for all the hard numbers, but the soft stuff, like depreciation etc I usually estimate (based on previous years figures) and understate by an amount I feel comfortable with.
I provide accurate fugures for all the hard numbers, but the soft stuff, like depreciation etc I usually estimate (based on previous years figures) and understate by an amount I feel comfortable with.
The form is basically the same as the tax return, just in advance. They ask what your current/expected income is, they ask you to attach a payslip, current rent, estimate of rental and work expenses, add it all up and estimate your tax refund for the year, then the ATO contacts your employer and asks them to give you this in 12, 52nd or 26th incremenents depending on your pay period.
You can ask your accountant to help with the forms, though they may charge a (tax deductable) fee. Its worthwhile using an accountant if you dont feel comfortable I reckon, at least for the first time. They can work out how much you will be getting back, and perhaps underestimate your expenses a bit so you dont need to pay any tax at the end of the year.
You can ask your accountant to help with the forms, though they may charge a (tax deductable) fee. Its worthwhile using an accountant if you dont feel comfortable I reckon, at least for the first time. They can work out how much you will be getting back, and perhaps underestimate your expenses a bit so you dont need to pay any tax at the end of the year.
I remember someone advising the forum last year when the 2009/10 form was available for downloading. Hopefully some kind soul will do the same to advise that the 2010/11 form is up...
(Yes, I could check the ATO every day from May/June myself, but I assume that if you've submitted an ITWV before - I haven't -then you're quickly advised via email alert or something similar?)
(Yes, I could check the ATO every day from May/June myself, but I assume that if you've submitted an ITWV before - I haven't -then you're quickly advised via email alert or something similar?)
Yeah, usually Rixter or myself do that. It's all about sharing The Love.
thanks for your replies. Seeing as its nearly year end i might not vary it. I'll fill in a "dummy" form and see if i manage.
I'd love to be able to give this to my accountant but im not happy with her service/fees but don't know who i could go too so I'm slightly stuck!!
I'll give it a go and might just ask here again when i get stuck
I'd love to be able to give this to my accountant but im not happy with her service/fees but don't know who i could go too so I'm slightly stuck!!
I'll give it a go and might just ask here again when i get stuck
It's not hard. But it's not intuitive, either. There are people here who can give you some general advice on completing the form.
Relax. This is supposed to fun. Don't forget that!
Relax. This is supposed to fun. Don't forget that!
Or other negative geared investment.
There's also a form for people who get car allowances etc so they can claim expenses via a special ITWV.
But don't tell everyone about the ITWV. The positive cash flow brigade don't get Fed Govt assistance to build their portfolio. They will feel like they're missing out. So Sshhh Secret Squirrel
