3. File a PAYG variation to reduce your tax
Rather than letting the Australian Taxation (ATO) keep your monies, file a PAYG variation to reduce your tax bill and use your cash during the year. It’s your money after all, so
why shouldn’t you have access to it sooner?
When you file a PAYG variation you’ll receive your refund on a regular basis – with ever pay packet-rather than one time at the end of the financial year.
Use the increased cash flow to pay down a bad debt, add towards an investment property deposit, add to your buffers, go on a holiday – whatever you choose.
The PAYG variation doesn’t take the place of your annual tax return. Obviously, you will still need to lodge a return as usual; the payments you receive throughout the year will b credited against your tax obligations.
Note that variations expire June 30 of each year so best practice is to submit a new application by May or early June each financial year. Don’t forget that if you change employers you will need to file a new variation request.