Income Tax Withholding Variations
Why would you want to wait months to receive your tax refund if you could receive it straight away? This could be money being directed to the reduction of debt and minimising interest paid to the bank.
Arguably the most effective tool available to improve your cash flow, an Income Tax Withholding Variation (ITWV) allows you to receive your tax refund in your pay cycle instead of when your annual tax return is lodged and assessed by the ATO. If you get paid monthly you’ll receive your tax benefit monthly, and likewise if paid on a weekly or fortnightly basis.
ITWVs are particularly popular with property investors. Property investors tend to have a significant amount of tax deductions therefore having access to this money sooner rather than later means that they can manage the cash flow requirements. If you have a negatively geared property we recommend you discuss if having an ITWV is possible and appropriate with the tax experts at McCarthy Accountants.
We’ve all heard the saying “cash is king” and many would understand that various financial problems for a household or business stem from cash flow issues. Why would you want to wait months to receive your tax refund if you could receive it straight away? This could be money being directed to the reduction of debt and minimising interest paid to the bank. It could be money that goes towards the many household or investment expenses you continually have to cope with. It could also be used to simply help take the stress out of managing your money by allowing for some buffer within the budget.