Join our investing community

Income tax variation

Discussion in 'Accounting, Tax & Legal' started by Triu, 23rd Dec, 2007.

  1. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    Hi i have just put in my income tax variation form for 2007/2008. my question is if i change to a new job with an increase in income do i have to notify the ATO with another income tax variation form or will it be automatically adjusted.

    thanks
     
  2. tasmo

    tasmo Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    47
    Location:
    Canberra, ACT
    Triu,

    When you submit a tax variation, the tax office calculates from your estimate of current financial years income, the percentage of wage or salary that need to be withheld by your employer for the balance of the financial year to meet your tax obligations. They then send a letter to your employer instructing them of the percentage of your remuneration to be withheld and remitted to the tax office. This percentage remains in place for that employer for the current financial year unless you submit another variation.

    Thus if you change employers you need to submit a new variation so the tax office will adjust the withholding percentage and most importantly, notify your new employer of the appropriate percentage of earnings withheld for tax .