PAYG withholding vs tax return
PAYG withholding is an in-year estimate. Your final tax position is calculated when your full-year income, deductions, and offsets are assessed in your tax return.
Why estimates and final outcomes differ
- Withholding formulas operate at each pay cycle, not always on full-year context.
- Bonuses, job changes, and irregular income can change effective annual outcomes.
- Deductions and offsets are often only fully reflected at return time.