With interest income up a lot this year, will a substantial voluntary payment before EOFY help me avoid provisional tax next FY? I also get quite a bit of dividend income on top of my part time university salary.
will a substantial voluntary payment before EOFY help me avoid provisional tax next FY?
No, because there is a formula applied to the income items disclosed in your tax return.
will a substantial voluntary payment before EOFY help me avoid provisional tax next FY?
No, because there is a formula applied to the income items disclosed in your tax return.
Hi Team, im in the same position with getting extra interest earning, if i estimate the tax and pay before EOFY, or just pay it with the tax return is there any difference? Any things should be aware of?
Hi @mikeydawson,
You can pay before EOFY as voluntary payment so when the liability arises. We will use this money to offset your debt.
It comes down whether you want to keep the monies in your own bank account or in your ATO account.
Some people do voluntary enter themselves into PAYG Instalments. This helps you smooth out your cashflow and avoid a large tax bill when you lodge your tax return.
Sometimes, we will automatically enter you into instalments based on your last tax return. If you have all of the following:
You can read more about this on our starting PAYG Instalments page.
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