Downward variations

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.

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

How to apply for a downward variation

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

This is a transmittable form to lodge over the internet. For more information and to use the form, refer to PAYG withholding variation application (e-variation).

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

If you have difficulty downloading, completing or transmitting the e-variation, phone 1300 360 221. 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.

Alternatively, if you are a taxpayer, you can order a paper application by:

  • Visiting our online ordering and search for NAT 2036.
  • phoning our automated self-help ordering service on 13 28 65.
    Last modified: 29 Jun 2016QC 19428