How to reduce PAYG underwithholding risk before the financial year ends

Published by SESAY · 2026-10-07 · General Australian payroll guidance

What to understand first

PAYG withholding is a contribution toward final tax, not a guarantee of a nil assessment. Multiple jobs, changing income and personal circumstances can create a gap. An employee can discuss extra withholding with payroll; reducing withholding may require ATO approval under the applicable rules.

Practical checks

• Employee: review year-to-date income and withholding across payers.
• Check declarations, loans and any recent changes.
• Use current ATO tools and seek advice on your full tax position.
• Document an agreed extra-withholding instruction and review it when circumstances change.

Fictional example

Fictional employee Alex estimates a possible $1,200 shortfall with their tax adviser. With 12 fortnightly pays remaining, they ask payroll to withhold an extra $100 each pay. This simple budgeting example assumes the estimate and remaining pay count are correct; it does not calculate Alex’s actual tax or guarantee the final outcome.

Your next step

Payroll should show the extra amount clearly and verify the first affected pay. An instruction should specify when it begins and how it is changed or stopped. Employees should revisit the estimate after a bonus, job change or significant income change. A larger deduction affects current take-home pay, so plan household cash flow too.

How SESAY can help

SESAY can support additional-withholding workflows, employee checklists and practical training on explaining PAYG without promising a particular refund.

Official sources

• ATO — Multiple jobs or change of job
• ATO — Tax withheld calculator
• ATO — Schedule 5: working out withholding

Sources researched 2026-10-07. Examples are fictional and use stated assumptions. Confirm current rules and your circumstances before acting. This is general information, not individual tax or legal advice. SESAY is independent of the regulators linked here.