Landlord with cashflow problems? Getting the best out of your negative gearing may be the solution.

Did you know that if you are an owner of a negatively geared rental property or shares that you can derive more in your pay packet each pay rather than wait until you lodge your annual tax return for the refund? If you normally get a tax refund at the end of the financial year as a result of your negative gearing, then this is for you!

How does this work?  By completing a PAYG withholding variation form, the Australian Tax Office (ATO) will instruct your payroll department to reduce the PAYG withholding tax from each pay until the end of the financial year. As a result, you get your tax refund released little by little during the year by way of a bigger pay packet each pay rather than waiting until you lodge your income tax return – a much more effective way of benefiting from your negative gearing.  If you find that you enjoyed the benefit of this cash flow, then a new application would need to be prepared preferably in June 2019 in readiness for the next financial year.

Some people use the extra cash to pay down their own home mortgage faster, pay the utilities for the rental property or just to help out balance the weekly household cashflow requirements. Everyone has their own needs.

For a fee from $250 (which is tax deductible) we can prepare the PAYG variation and lodge it with the ATO, so that you can enjoy the benefits of the increased cash flow from your negative gearing as soon as your payroll department is notified by the ATO.

If you are interested, please give us a call on 3821 4401 or send us an email on [email protected] and we can answer any of your questions.

Leanne Apiata CA

Manager