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  • Downward variations

    You can ask your payer to reduce the amount of withholding from your income.

    Example 1

    Sue is a salary and wage earner who uses her own vehicle for work purposes. Her payer pays her an annual motor vehicle allowance of $10,000. Sue estimates that her annual tax-deductible car expenses will be $9,000. She can apply for a variation so that her payer will withhold tax from only $1,000 of her allowance.

    End of example


    Example 2

    John is a real estate salesperson who is paid on a commission basis. He owns a rental property. John's annual gross income from his only payer is $45,000. He estimates that his rental property loss will be $15,000. So, his estimated taxable income will be $30,000 ($45,000 − $15,000). John can apply for a variation to have his withholding rate calculated based on his estimated taxable income of $30,000.

    End of example

    Processing times

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

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

    How to lodge a downward variation

    If you want to vary your withholding amount downwards, you need to lodge a PAYG withholding variation application with us.

    Lodging an e-variation, rather than a paper application, will reduce the time taken to process the application.

    If you cannot lodge online, you will need to order a paper application (NAT 2036).

    Next steps:

      Last modified: 29 Jun 2018QC 19428