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  • PAYG withholding variation application – senior Australians only

    Complete this application when you want to vary or reduce the amount of pay as you go (PAYG) tax withheld from payments made to you in the application year and you:

    • are a senior Australian
    • receive payments from multiple payers.

    Note: If you are a veteran or war widow/er and under 60 years old for the full income year, do not use this form. Complete a PAYG withholding variation application (NAT 2036) using reason codes 10A0 and 11A0.

    This application is non year specific and valid for one financial year. If you apply in May or June, the variation will apply to the financial year starting from 1 July.

    You can lodge your application during the year. The last date for lodgment is 30 April of the application year.

    The main purpose of varying or reducing the amount of withholding is to make sure that the amount withheld during the income year best meets your end-of-year tax liability. For example, you may want to apply for a variation if the normal rate of withholding leads to a large credit at the end of the income year because your tax-deductible expenses are higher than normal.

    Processing times

    The processing time for an application depends on the method you use to lodge your application. If you lodged:

    • online using an e-variation – within 28 days
    • by paper – within 56 days.

    How to lodge

    To lodge online using an e-variation, go to PAYG withholding variation application (e-variation)

    If you cannot lodge online, you will need to order a paper application by:

    • visiting Online ordering and search for NAT 5424
    • phoning our automated self-help ordering service on 13 28 65.

    Important information

    We will process your application only if you:

    • correctly complete all the questions in sections A to D
    • have lodged all required tax returns, or notified us in writing if you were not required to lodge tax returns in prior years
    • do not have any outstanding tax debt owing to the Australian Government
    • do not have any outstanding debts under any Acts administered by us.

    We may seek more information from you before or after your application is processed. If you fail to provide this, your application may not be approved.

    We process your application based on the information you provide. It is your responsibility to make sure this information is adequate to allow us to calculate a withholding rate to meet your end-of-year tax liability. If you need help to calculate your tax liability or complete the application, phone 1300 360 221.

    Your new withholding rate or amount

    Using the information you provide on your application, we will calculate a new rate or amount of withholding for you (this rate or amount may be zero, which means your payer should not be withholding tax from your payments). We will send a letter to you confirming your new rate of withholding. We will also send a notice of withholding variation to all payers that you list on your application to advise them of your new rate of withholding.

    If your new rate or amount of withholding is zero, and your taxable income is below the income threshold, you and your payer/s may be advised that this new rate or amount will remain in force indefinitely. If this is the case, you will not have to send any more PAYG withholding variation applications to us. Your payer may take some time to adjust your payments to stop tax being withheld. Any tax withheld after 1 July of the application year may be repaid to you by your payer.

    If your new rate or amount of withholding is not in force indefinitely, your letter will include an expiry date. This means that your new rate or amount of withholding will be valid only up to and including this date. To continue to get a reduced amount of tax withheld from your payments after this expiry date, you will have to send another PAYG withholding variation application to us. New applications should be lodged at least six weeks before the expiry date.

    Starting and finishing dates

    If your application is approved, the varied or reduced amount of withholding will start from the next available payday after your pay office receives the notice of withholding variation from us.

    Any amount withheld before the variation comes into effect will generally not be refunded. If the amount withheld is not refunded by your payer, you will need to lodge a tax return to get any refund due.

    Your variation finishes on the expiry date shown on the letter you receive from us. It is your responsibility to reapply for a future variation if your circumstances change.

    Find out about:

    See also:

    You can also phone us on 1300 360 221. If you are a tax agent, phone 13 72 86, fast key code 1 2 3 between 8.00am and 6.00pm Monday to Friday.

    Last modified: 01 May 2017QC 21683