• When downward variations start and finish

    Re-applying for the next financial year

    If you require a downward variation to be in place before the first pay of the next financial year, we recommend you lodge a new application by no later than the middle of May each year.

    Make sure you use the correct version of the application, or we will return it to you.

    Starting date

    If your application is approved, the varied rate or amount of withholding will start from the next available payday after your pay office receives the notice of withholding variation from us. The letter we send to you is not the official notice. Your payer cannot implement a variation using your letter.

    The implementation of your variation may be delayed if you do not provide a correct Australian business number (ABN) and your pay office's direct postal address – for example, if you give us your work location rather than the pay office postal address.

    Finishing date

    Your variation finishes on the expiry date shown on the notice of withholding variation from us. To continue to have reduced tax withheld from payments after this date, you must lodge another PAYG withholding variation application – at least six weeks before the expiry date.

    Multi-year variations

    Variations for allowances may now be issued for more than one year. The expiry date on the notice of withholding variation we send you after we process your application will show whether your variation has been issued for more than one year.

    Change of circumstances

    You must complete a new application and advise us of any change in your circumstances during the year – for example, when you sell a rental property, or your taxable income changes to the extent that you will receive a debit assessment of $500 or more.

    Class variations

    If you and your work colleagues are seeking an identical variation, your payer may apply for a class variation on your behalf. As an example, you and your colleagues may wish to vary your withholding amount to better reflect the deductible expenditure you would incur in relation to an allowance. In this case, your payer may apply for a class variation on your behalf.

    An application for a class variation may be lodged only on behalf of six or more payees. If there are fewer than six payees, the payees must apply on their own behalf using the PAYG withholding variation short application (NAT 5425).

    In making a request for a class variation, the payer makes a declaration on behalf of their payees. The declaration states that the expenditure to which the allowance relates can reasonably be expected to be deductible on assessment. The payer should ensure that they are able to correctly make this declaration on behalf of all payees included in their request. Payees for whom the payer is unable to make this declaration can apply individually for a variation using the PAYG withholding variation short application (NAT 5425).

      Last modified: 29 Jun 2016QC 19428