• What is a withholding variation?

    Under tax law, the Commissioner of Taxation may vary the amount a payer is required to withhold from a withholding payment, to meet the special circumstances of a particular case or class of cases.

    The main purpose of varying your rate or amount of withholding is to ensure that the amounts withheld during the income year best meet your end-of-year tax liability. An example is where the normal rate or amount of withholding would lead to a large credit at the end of the income year because your tax-deductible expenses are higher than normal.

    You can request an increase or decrease in the rate or amount of withholding.

    If you believe your circumstances warrant a variation of the rate or amount of withholding, you will need to determine whether the variation is upwards or downwards.

    Note: The granting of a variation does not mean that we have accepted the tax treatment of the income and deductions in your application – your actual tax liability will be determined when you lodge your income tax return. Under tax law, you must keep records of your relevant income and expenditure for a minimum of five years.

    Find out about:

    • Phone 1300 360 221
    • Email ITWvariation@ato.gov.au
    • If you are a tax agent, phone 13 72 86 Fast Key Code 1 2 3

    Our phone services are available from 8.00am to 6.00pm, Monday to Friday.

      Last modified: 29 Jun 2016QC 19428