PAYG Withholding Variation Calculator
Find out how much extra you could take home each pay cycle by varying your PAYG withholding based on investment property losses.
What is a PAYG variation?
If you have a negatively geared investment property, your employer is likely withholding too much tax from your pay — because they do not know about your investment losses. A PAYG withholding variation (also called an income tax withholding variation) tells the ATO to reduce the tax taken from your pay, giving you the tax benefit throughout the year instead of waiting for your tax return.
How much extra per fortnight?
The amount depends on your investment property loss and your marginal tax rate. For example, if your property makes a $15,000 annual loss and your marginal rate is 37%, you could receive approximately $213 extra per fortnight ($15,000 x 37% / 26 fortnights).
How to apply
- Calculate your estimated net rental loss for the financial year
- Apply to the ATO online via myGov or through your tax agent
- The ATO issues a variation notice to your employer
- Your employer adjusts your PAYG withholding from your next pay
Disclaimer: This calculator provides estimates only. The actual variation amount is determined by the ATO based on your complete financial situation. This does not constitute financial or tax advice. Consult a qualified professional before applying for a PAYG variation.