PAYG Variations – Negatively Geared Investments
PAYG variations are attractive to taxpayers who have negatively geared investments (such as rental properties or share portfolios), and receive large tax refunds when lodging their annual tax returns. This strategy involves lodging a PAYG variation with the ATO in July of each financial year to bring forward the tax benefit. Once the PAYG variation is processed by the ATO the taxpayer’s employer will reduce the PAYG withholding tax deducted from their weekly wage. This brought forward cashflow can then be banked into a mortgage offset account to reduce private non-deductible interest (on their private residence).
Similar posts you may like
- PAYROLL TAXES (1941)
The federal government introduced payroll tax in 1941 at 2.5% of wages to finance a national scheme for child endowment. In 1971, the federal Read more
- Putting Lipstick on the Pig
Talk to anyone in the accounting industry and it’s very apparent that compliance fees are falling (and will continue to fall year on year). Read more
- Is Bitcoin a Tax Haven?
Bitcoins most important characteristic is that it is decentralised so no single institution controls the Bitcoin network. Bitcoin is pseudonymous, meaning that funds are Read more
- Do you have a holiday season budget?
It’s easy to overspend in the holiday season and further distance yourself from your financial goals. We have spending pressures from every angle; gifts, Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2