PAYG Variation Calculator
See how reducing your tax withholding with a PAYG Variation can increase your weekly take-home pay. For the 2025-26 tax year.
Step 1 of 3: Income
Income
Deductions
Results
Cash Flow Comparison
Standard PAYG Withholding
Your employer withholds tax based on your gross salary. Because this doesn't account for your large deductions, too much tax is taken out each payday. You get this excess back as a large lump-sum tax refund after lodging your tax return.
With a PAYG Variation
By lodging a variation, you give the ATO your estimated deductions upfront. They instruct your employer to withhold less tax. This increases your take-home pay each pay period, giving you access to your money throughout the year instead of waiting for a refund.
How the Calculator Works
This tool simplifies a complex process into a clear estimate. Here’s the logic:
1
Standard Tax Calculation
First, it calculates your annual tax liability based on your gross income alone, using standard ATO tax tables.
2
Recalculation with Deductions
Next, it subtracts your estimated annual deductions from your income to find your new, lower taxable income and recalculates the tax owed.
3
Find the Difference
The difference between the two tax amounts is your annual tax saving. The calculator divides this by 52 to show your extra weekly cash flow.