Making The Most Of A Tax Variation
With interest rates making an impact on outgoings for many Pillar clients, it’s a timely reminder to consider arranging for a Tax Variation for the new financial year.
In essence, a Tax Variation is a method of reducing your PAYG tax withholdings so that you may have improved cashflow with which to service your investment property loan.
The application provides your employer with an authority from the Australian Taxation Office to effectively ‘bring forward’ any tax credits you might otherwise receive at the end of the financial year (annually adjusted pay-to-pay).
It can be an effective tool in mitigating rising interest rates when it comes to keeping your investment property ticking along.
For those who aren’t afraid of some ATO paperwork, here’s the link to the ATO web site: https://www.ato.gov.au/Forms/
For everyone else, we recommend talking to your accountant. If your accountant isn’t aware of the Tax Variation, it may be time to find a new one.