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ECsunshine(I'm new)I'm new
3 Aug 2023

Hello ATO community,


I'm hoping you might be able to provide guidance to quarterly PAYG payments I need to make in addition to tax which gets automatically deducted from my monthly pay slip.


For context, I work full time in a single job, I own a few shares (but have never sold any and receive a small dividend payment from these), and have a HECS debt (where a proportion is paid off each month from my pay slip). I don't receive any other income and from my employer don't receive any additional benefits (e.g. fringe benefits).


I'm wondering why I need to make quarterly PAYG instalments? I also pay a tax bill at the end of each FY, so want to make sure the payments are correct. Any advice on how to check why I'm paying tax frequently?


Thank you in advance!

3,243 views
1 replies
3,243 views
1 replies

Most helpful response

Most helpful reply

WendyATO(Community Support)Community Support
3 Aug 2023

Hi ECsunshine,


You automatically get entered into PAYG Instalments if you have all of the following:


  • instalment income from your latest tax return of $4,000 or more
  • tax payable on your latest notice of assessment of $1,000 or more
  • estimated (notional) tax of $500 or more

We should have notified you in writing when and why we entered you into PAYG Instalments. Have you checked your mygov inbox?


Instalment income is ordinary income you earn not taxed at the original source. Refer to our webpage about the types of instalment income that might apply to you. It could be the small dividend payments you're receiving.


This could be possibly why you having to pay quarterly PAYG Instalments. These instalments will be used as a credit offset in your tax return reducing your liability or produce a refund.


You can read in detail about PAYG instalments on our webpage.


All replies

Most helpful reply

WendyATO(Community Support)Community Support
3 Aug 2023

Hi ECsunshine,


You automatically get entered into PAYG Instalments if you have all of the following:


  • instalment income from your latest tax return of $4,000 or more
  • tax payable on your latest notice of assessment of $1,000 or more
  • estimated (notional) tax of $500 or more

We should have notified you in writing when and why we entered you into PAYG Instalments. Have you checked your mygov inbox?


Instalment income is ordinary income you earn not taxed at the original source. Refer to our webpage about the types of instalment income that might apply to you. It could be the small dividend payments you're receiving.


This could be possibly why you having to pay quarterly PAYG Instalments. These instalments will be used as a credit offset in your tax return reducing your liability or produce a refund.


You can read in detail about PAYG instalments on our webpage.


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