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u/Clearandblue

r/AusFinance r/AusMining r/mildlyvagina
Image 1 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 2 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 3 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 4 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 5 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 6 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
Image 7 — Aerial view of an active open-cut gold mine in Western Australia's Goldfields
▲ 1.7k r/AusMining+1 crossposts

Aerial view of an active open-cut gold mine in Western Australia's Goldfields

u/Clearandblue — 3 months ago
▲ 4 r/AusFinance

Moving from quarterly to annual PAYG instalments?

Heard someone say they've moved from quarterly to annual PAYG instalments. But I can't see an official channel for doing it?

Has anyone here done it and can explain how?

Reasoning is that:

  1. The effective rate they give you is pretty high and always leads to significant over payment.
  2. To compound that, you can't even deduct expenses from it.
  3. 1 and 2 combine to mean you pay your Q4 instalment and then do EOFY tax return and get most of your Q4 refunded back a month later.
  4. Since I'm already withholding tax in a savings account, I could earn more interest allowing it to accrue over the full year.
  5. All up, paying quarterly is costing me on both cashflow and lost interest. Not just lost interest on withholdings, but also lost interest on the over payment amount that's sat with the ATO until they refund in August.

It's just a little bug bear really, but one I'd love to solve.

Best I could find online was that you can appeal to change the effective rates they give each quarter. But that if you end up going too low and need to make an EOFY payment, you'll owe the ATO interest on any under payments. Which stings when they're capturing so much extra from you without paying interest back.

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u/Clearandblue — 4 months ago