If you own an investment property — or a few — chances are you’re no stranger to a big tax refund come July. Between interest on the mortgage, property management fees, insurance, and depreciation, you’re likely to have accrued thousands, or even tens of thousands, in deductible expenses throughout the financial year.

But here’s the thing: you don’t have to wait until tax time to see the benefit. With a PAYG withholding variation, you could start seeing that money in your regular pay — right now.

So, What Is a PAYG Withholding Variation?

It’s a request you (or your accountant) lodge with the ATO to reduce the amount of tax taken out of your wages throughout the year.

To learn more, click here PAYG Withholding Variations

Why? Because you know you’ll be getting that tax back later anyway — this just means you get it as you go instead of all-in-one lump sum at tax time. This strategy is especially useful if you have:

• One or more negatively geared investment properties;
• High tax-deductible expenses throughout the year; and
• A decent refund coming your way and you’d rather have that extra cash flow now.

Real clients are using PAYG withholding variations and here’re ways they are taking advantage of it:

• Cover rising mortgage repayments;
• Pay down non-deductible debt faster;
• Boost their savings; and
• Reinvest into their next property.

How it Works?

In simple terms, there are two main ways in terms of how PAYG withholding variation works:

1. Downward variations – Most common. You reduce the tax being withheld from your pay to better reflect the deductions you’ll be claiming.
2. Upward variations – Less common but used if your investment is positively geared and you want to avoid a tax bill later by increasing your PAYG withholding.

It can however be a complex taxation strategy as it involves the following key considerations:

• The variation lasts for one financial year — so you’ll need to renew it each year;
• It’s important to get your estimates right (a wrong estimate can mean a larger than expected tax bill at tax time); and
• It can be a complicated process to navigate and require specialist taxation knowledge.

The best approach? Work with an accountant who understands your situation and can prepare it properly

Let’s Help You Get Started

Not sure if this is right for you? Or worried about getting the numbers wrong? That’s exactly what we’re here for.

Book a free, no-obligation chat with one of our taxation accountants – we’ll talk through your numbers, assess whether a PAYG variation makes sense for you, how you can best take advantage of it and take care of the paperwork if you want to go ahead.

To book in your free, no-obligation appointment:

• The Hopkins Group – 15 Quick Chat
• Request a Call-back

It’s your refund — why not get it sooner?

As The Reserve Bank of Australia (RBA) announced the widely expected cash rate cut by 0.25%, combined with the optimistic view that more cuts could happen in the future – we can now take a breath and explore what we need to do when interest rate is lowered, and how we can take advantage of it.

Some of the important things you should know and considered are:

• Cash rate cut does not automatically mean interest rate cut – your lender might not necessarily as onto your home loan. Furthermore, the lending market is becoming more and more competitive.
• Repayment amount does not automatically lowered after an interest rate cut – depending on your repayment structure, you might have to manually adjust your monthly repayment schedule to take advantage of the lowered interest rate.
• Different lenders might provide additional incentives – you should explore as many lenders as possible to compare the incentives they provide and consider refinancing with the lender that has the benefits most suited for your situation.

Ready to Review Your Mortgage but don’t know where to start? Book a free, no-obligation 15-minute conversation with one of our mortgage advisers, Loreen Dyer. We’ll help you understand where you stand, explore your options, and make sure your loan still works for you.

Planning for the future isn’t just about building wealth — it’s also about protecting it and making sure it ends up exactly where you want it when the time comes. That’s where estate planning comes in. It helps you take control, reduce complications for your loved ones, and make sure your assets are dealt with in the way you intended.

One area that’s often overlooked but can play a powerful role in a smart estate planning strategy, is the use of reversionary pension.

So, What Exactly Is a Reversionary Pension?

Put simply, a reversionary pension is a type of income stream set up using a deceased person’s superannuation. It’s only available to certain dependants — like a spouse, a de facto partner, or dependent children.  Instead of receiving a lump sum after someone passes away, the beneficiary continues to receive regular payments from the deceased pension account.

Who Might Benefit from It?

If you’ve lost a loved one who had super, and you were financially dependent on them, a reversionary pension might be an option.   It can be a smart way to manage tax, cash flow, and long-term financial stability. It’s not something that applies to everyone, but when it does, it can make a real difference.

It can help:

• Spouses and partners continue receiving income in a tax effective manner

• Dependent children be financially supported in the longer term in a tax effective manner

It’s important to note, though, that this should be considered and used as part of a broader estate plan as there are limits on the amounts you can have in your super account and this might not work for you. 

Making Sense of the Jargon: Reversionary, Non-Reversionary & BDBNs

There’s a lot of terminology in superannuation that can be confusing — especially when it comes to what happens after someone passes away. Here’s a quick breakdown:

• Reversionary pensions: These automatically pass to a nominated dependent when the person dies. It’s clean, simple, and avoids delays — but the nomination has to be documented as part of your pension paperwork.

• Non-reversionary pensions: The trustee decides how the benefit is paid out. There’s more flexibility here, but also more uncertainty.

• Binding Death Benefit Nominations (BDBNs): These give you control. They legally bind the trustee to follow your wishes — but only if they’re valid, signed properly, and kept up to date.

Getting these settings right can mean the difference between a smooth handover and a drawn-out, expensive process for your family.

Reversionary Pensions as Part of Your Estate Plan – What You Need To Think About

Reversionary pensions aren’t just a financial tool — they’re part of a bigger picture: how your legacy is structured. If you’re thinking about estate planning, here are seven things to think about:

1. Clarify Your Objectives
   What do you want your estate to achieve? Whether it’s helping kids through university, giving loved ones financial security, or protecting assets — clear goals lead to better plans.

2. Review What You’ve Got
   A solid plan starts with understanding your current financial position and identifying how to transfer wealth in the most tax-effective way.

3. Check Your Beneficiaries
   Your super doesn’t automatically go through your will. Extra planning needs to happen — ensures it ends up with the right people.
   
4. Explore Trusts
   Testamentary or family trusts can provide added protection, tax benefits, and control over how and
   when beneficiaries receive assets. It’s worth discussing with an adviser.
   
5. Document Your Plans in a Valid Will
   A legally sound will is non-negotiable. Without one, the law decides where your assets go — and it might not reflect your wishes.
   
6. Appoint Powers of Attorney
   If something happens and you can’t make decisions, who will step in? Choosing someone you trust is essential — both for financial and medical matters.
   
7. Keep It Fresh
   Life changes — and so should your estate plan. Marriage, divorce, children, or major financial changes all mean it’s time for a review.

Not Sure Where to Begin? We’re Here to Help

If all this sounds a bit overwhelming — that’s completely normal. Thinking about what happens after you’re gone isn’t easy. But the good news? You don’t have to figure it all out on your own.

A quick chat with someone who understands the landscape can make things clearer, calmer, and more actionable.

Book a free 15-minute, no-obligation consultation with one of our advisers. Whether you’re starting from scratch or reviewing your current arrangements, we’ll help you take the next step with confidence.

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