ATO Community

Re: Can an individual receiving salary continuance manage their own PAYG

Newbie

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I am in receipt of longterm salary continuance benefits from an insurer. For reasons of superannuation contributions I prefer to manage income tax - PAYG myself.  How can I formally acheive this, if at all, ie., obtain approval from the ATO to satisfy the insurer to release gross income. the insurer is reluctant or resistant. I have no issue to PAYG myself.

thanks folks.

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ATO Community Support

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Hiya @isthatthetime,

 

You can apply for a withholding variation. In this case you would be requesting a downwards variation. I will provide a link below that contains the information on the situations when a downwards variation would be accepted and a copy of the application form.

 

Downward Variation.

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Most helpful response

ATO Community Support

Replies 2

Hiya @isthatthetime,

 

You can apply for a withholding variation. In this case you would be requesting a downwards variation. I will provide a link below that contains the information on the situations when a downwards variation would be accepted and a copy of the application form.

 

Downward Variation.

Newbie

Replies 1

Thanks for the prompt reply.

I did see and read the Variation option but it appears to only allow half dozen legitimates to Partially vary tax withheld where my aim is reverse 100% of withholdings, paying any income tax directly myself, that manage my gross salary as required. Am I interpreting this incorrectly?

 

Community Moderator

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Hi @isthatthetime

 

It sounds like you've interpreted it correctly. You can only apply for a downward variation for one of the reasons outlined. For example, you could apply if you're negative gearing.

 

Wanting to manage your tax yourself isn't a reason to apply. If you don't have a reason that's in line with one of the reasons listed on the variation application, it doesn't sound like you can apply.