Tag: PAYG.PAYGW

Key Dates for May & June

Many lodgement and payment deadlines are looming for business including those relating to Activity Statments, Superannuation, and more….

MAY 2019

12 May – 3rd Quarter 2018/2019 Activity Staterments – due for lodgement and payment if lodging electronically

21 May – April 2018 monthly Activity Statements – due for lodgement and payment

21 May – FBT annual tax return – due for lodgement and payment for self-preparers

28 May – Due date for lodgement and payment of the Superannuation Guarantee Charge Statement if you failed to pay Superannuation Guarantee on time for the January-March quarter. Superannuation Guarantee Charge is not deductible

JUNE 2019

21 June – May monthly Activity Statements – due for lodgement and payment

25 June – 2019 FBT annual tax return – due date for lodgement and payment if using a Tax Agent who lodged electronically

30 June – Superannuation Guarantee payments must be received by Superannuation funds by this date in order to be deducted in 2018/2019

30 June – End of the 2018/2019 financial year

Where one of these dates falls on a weekend or a public holiday, the due date is extended to the next business day.

PAYGW TAX VARIATION

We have all heard about businesses varying their PAYG instalments on their Activity Statement if their business and investment income for the current year is expected to be less than anticitpated. However, the opportunity also exists for salary and wage earners to vary downwards the amount of PAYG tax deducted by their employer each pay cycle. The main purpose of varying the rate or amount of PAYG withholding is to ensure that the amounts withheld during the income year better align with your year-end tax liability if you are a taxpayer who has significant deductible expenses throughout the year which may be the case for:  

  • Property owners who are hightly negatively geared; and
  • Taxpayers, such as salespeople, who have large travel expenses and other costs. 
By having less PAYG deducted, you are improving your cash flow. Rather than having to wait until year end to receive a sizeable tax refund, the refund is effectively flowing through to you in each pay cycle. You then have control over this money earlier than you otherwise would and can use it to invest or discharge your everyday expenses etc. If you think you may fall into this category of having large deductible expenses, then you should complete a PAYG withholding variation form which is availbale on the ATO website. //www.ato.gove.au or consult your tax advisor. 

WARNING 
Before employing this strategy, be aware if the deductions you anticiapated having during the year do not materialise, or indeed, your untaxed income (such as rent, interest, dividends etc.) is higher than you anticipated for the year, you may end up with a tax bill when you lodge your return.