Hi there!
I currently have a PAYG withholding variation as I have quite a few tax deductions that would cause an overpayment of PAYG tax throughout the year.
My question is, if I change employers how does my new employer know to withhold my tax as per the PAYG withholding variation?
My understanding is that employers are only able to do this after the ATO has sent them a physical letter.... Must I ask the ATO to do this once I change employers?
Hiya @FinanceDude 👋
All tax treatments apply between the payee (you) and the payer (your former payer). I assume the variation you're talking about is the ATO downward variation?
You have to apply again if you get a new payer. The existing arrangements are only for the former payer.
No payer is permitted to apply a downward variation other than from receipt of an ATO downward variation letter. They must tax you as per the tax documents you provide to them: TFN declaration, withholding variation, medicare levy variation. Only ATO can provide the downward variation, it's not transferable.
Deanne
Hi @FinanceDude
Our Varying your PAYG withholding page under Change of circumstances states you must complete a new application and let us know of any change in your circumstances during the income year.
You will need to re-apply.
The withholding variations will also cease to have effect if we receive advice from either yourself or an employer advising that the relationship has ended.
Hiya @FinanceDude 👋
All tax treatments apply between the payee (you) and the payer (your former payer). I assume the variation you're talking about is the ATO downward variation?
You have to apply again if you get a new payer. The existing arrangements are only for the former payer.
No payer is permitted to apply a downward variation other than from receipt of an ATO downward variation letter. They must tax you as per the tax documents you provide to them: TFN declaration, withholding variation, medicare levy variation. Only ATO can provide the downward variation, it's not transferable.
Deanne
15 Apr 2026 · 8 min read time
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15 Apr 2026 · 4 min read time
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