PAYG TAX INSTALMENTS EXPLAINED
Pay as you go (PAYG) instalments is a system for making regular payments towards your expected income tax liability. By making regular payments (instalments) throughout the year you won’t have to pay a large tax bill when you lodge your tax return.
Your payments are made based on your business and/or investment income (which is also known as instalment income). When you lodge your tax return, all the amounts you’ve paid during the year will be offset against any tax you owe for the year.
Why you have entered PAYG instalments
The ATO work out whether you need to pay PAYG instalments based on information you reported in your latest tax return.
Changing the amount you pay
If your circumstances change and you think the instalment amount or rate we have worked out will mean you’ll pay too much or too little tax, you can:
– Vary your PAYG instalment on your current activity statement. This MUST be done before it is due
– Lodge a revise activity statement
How to vary your instalments online
For Individuals including Sole Traders:
You can view, lodge, pay, vary and manage all your PAYG instalment obligations in one place. All you need is a myGov account linked to the ATO.
You need to have Online Services for Business set up and login.
We can manage it for you
If you do not have access to MyGov or Online Services for Business we can lodge and vary your amounts.
For more information: https://www.ato.gov.au/General/payg-instalments/