Income Tax Withholding Variation (ITWV)
One of the services we offer our clients is to prepare an ITWV which can be used to get early access to a future tax refund. If you are expecting a large tax refund in the current tax year we can prepare an ITWV which is an estimated future tax return. We must include an estimate of ALL income an expenses for the year. Wages, interest, dividends, capital gains, rent, trust distributions as well as deductions.
From this estimated return ATO determine a new tax rate applicable to your gross pay for the remainder of the tax year. ATO send a letter to you and to your employer.
Effectively you get a little bit of your future refund as reduced tax each pay period. Note that each ITWV expires at the end of the tax year that it applies to.
Common reasons to submit an ITWV would be negative geared rental property losses, high motor vehicle deductions or any deductions that will generate a large tax refund.
Any queries please contact us. Current clients please fill in the form below. New clients please contact us to discuss.