How to get your tax refund each pay day
If you usually get a big tax refund each year, it may be possible to arrange to get
your refund each pay day rather than waiting for tax time.
You will need to apply for a PAYG withholding variation from the ATO.
If it’s accepted your employer will reduce the amount of tax you pay on your salary which means your take-home pay will increase.
This strategy is most commonly used by people with an investment property that is negatively geared.
Of course, this will mean that you’ll get a smaller refund at tax time or even no refund. There is also the risk that, if your estimate was wrong and you didn’t pay enough tax during the year, you could end up with a tax bill!
It’s best to speak to a tax agent or accountant to help you run through the numbers before applying for a PAYG withholding variation.
Effie Zahos
Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.
The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.
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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.