Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
PGat2210(Initiate)Initiate
3 Nov 2022

I received my "You have entered the PAYG instalments system" letter this month, missing the 28 October deadline for the first quarterly installment. The letter explains the basis for the income determined, being over the $4000 threshold, and the notional tax, also over the $500 threshold. I have been in the system previously.

However on the next page it states under the heading "How much you will need to pay" ... "The easiest and most popular option is to pay the quarterly instalment amount that we have worked out for you of $0".

I went into myTax, manage PAYGI option which states I have a quarterly payment of $0 and offers one option of exiting the PAYGI system. I actually want to stay in the PAYGI system and increase the estimated tax due to changed circumstances.

I rang the call centre and they advised I would receive the next quarterly installment statement in December, and I am assuming I will then be able to either vary the installment amount of $0 or the calculated tax amount. They also showed me how to pay in advance if I wished.

Why is the letter showing an amount of $0 for the quarterly payment and myTax offering an exit option only?

Will I get an installment notice for the next quarter and what amount $0 or >$500 will appear? Or will I get the 2 installment form in the third quarter?


1,220 views
3 replies
1,220 views
3 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
7 Nov 2022

Hi @PGat2210


It's difficult to know exactly why your letter shows $0, without access to your record. Does the letter state that you missed the first quarter? This could be why. If we made an amount payable then it'd be late. Does it have an instalment rate under the same section?


You should get another activity statement for next quarter. If paying by the amount then we may expect Q1 and Q2 together. Again its difficult to know without seeing your account.


If you're eligible to exit the system then exiting online is an option you've got.


Our PAYG instalment article has further information on entering and exiting the system.

All replies

Most helpful reply

AriATO(Community Support)Community Support
7 Nov 2022

Hi @PGat2210


It's difficult to know exactly why your letter shows $0, without access to your record. Does the letter state that you missed the first quarter? This could be why. If we made an amount payable then it'd be late. Does it have an instalment rate under the same section?


You should get another activity statement for next quarter. If paying by the amount then we may expect Q1 and Q2 together. Again its difficult to know without seeing your account.


If you're eligible to exit the system then exiting online is an option you've got.


Our PAYG instalment article has further information on entering and exiting the system.

PGat2210(Initiate)Initiate
7 Nov 2022

Replies to the above

Does the letter state that you missed the first quarter?

No, I did not lodge the tax return until 21/10/22 and NOA received on 28/10/22. Any quarterly installment form would not be generated for the first quarter, since I only entered the PAYGI system once the NOA was issued.

@AriATO the point I am trying to make is that the body of the letter under the heading:

The table below shows why you have entered into the PAYG instalments system had

Estimated tax for this income year (notional tax) More than $500

but the letter quotes $0.

There is a 7.8% installment rate in the letter on page 3. Until I actually get an activity statement, which I expect will happen before 28-Feb-23, I can't manage which option, nor the amount for an installment amount.

I would also add that I rang the call centre about this matter before I posted this as I was none the wiser after the call. Hence the post.

CaroATO(Community Support)Community Support
17 Nov 2022

Hi @PGat2210,


Sorry to hear you're having a rough time with this.


When you lodged your most recent tax return did you let us know you received business and/or investment income of more than $4,000 and tax payable of $1,000 or more?


We've a planned generation date of 4 December 2022 for quarter 2 BASs.


On this BAS you'll be able to vary up the pre-printed amount to reflect the amount of tax you need to pay on your business/investment you received for the first 2 quarters of this financial year. If you prefer to use the instalment rate


We can't tell you why on your letter the estimated tax for this income year is $0 without looking into your account.


Have a look at the information on our website where it talks about estimating tax on your instalment income.

Featured articles

Finding your TFN

6 Feb 2026 · 4 min read time

Linking your myGov account to the ATO

24 Aug 2025 · 3 min read time

Spouse details and your tax return

15 Apr 2026 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3257 likes

  2. Taxduck

    (Taxicorn)

    2056 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    528 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10396contributions

  2. Taxduck

    (Taxicorn)

    4752contributions

  3. PayrollDeanne

    (Taxicorn)

    2055contributions

  4. YellowPotato

    (Taxicorn)

    1351contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Why am I entering the PAYGI system for $0? | ATO Community