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PAYG Variation

What Is a PAYG Variation?

A s221D PAYG Variation is used to vary or reduce the amount of tax withheld from your wages/salary. This application is valid for one financial year. If you apply in May or June, the variation will apply to the financial year starting from 1 July.

Who should apply for one?

Anybody can get one but the main purpose of one is to make sure that the amount withheld during the income year best meets your end-of-year tax liability.  This is typically applicable to individuals who have negatively geared investments or a lot of work-related deductions, resulting in high refunds at tax time.

How do you apply?

The e-variation is a transmittable form you need to lodge online over the internet. Your computer needs to meet the minimum system requirements to do this. If your computer meets the requirements then you download the PAYG withholding e-variation. Your Registered Tax Agent can lodge this form for you.

When do you apply?

The last date for lodgement is 30 April of the application year. It takes the ATO up to 28 days to process your application.

What is needed to apply?

You will need:

  • A computer that meets all the minimum system requirements.
  • Your details such as name, DOB, TFN, address and contact details
  • If your request is due to a negatively geared investment property:
    • Contract of Sale (page indicating contract date & purchase price)
    • Bank Letter of Offer (pages indicating amount of loan, interest rate & term)
    • Solicitor’s correspondence (letter provided by Solicitor at settlement detailing all costs, fees and disbursements)
    • Quantity Surveyors Report
  • Two (2) recent pay slips showing year to date gross and year to date tax instalment deductions (If your pay slips do not show YTD figures please provide a letter from your employer showing – last date paid, YTD taxable gross and YTD tax withheld) Your payslip also needs to show your employers name, ABN, your employee number, contact number for your employer and address of your employer

Copy of last tax return lodged – if completed by another accountant

Please note that due to Covid 19 restrictions, we can only have one client in a meeting with a staff member at any one time. We will be staggering appointments and staff availability due to this.

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