I had a Pay As You Go Plan with the taxation Office but I just want to exit this plan, How to do that? I just want to pay my income tax when I have lodged in my tax return and not prepay my income tax first and lodge my tax return later as I am now paying my 2026 income tax first before June 30 of 2026. I just want to pay my income tax once a year after I receive my tax assessment notice from the Taxation Office.
Do you mean PAYG instalments?
You may not be able to. There are eligibility requirements to exit. Link explains
Stopping PAYG instalments | Australian Taxation Office
Note from the link
"You can make a request to exit PAYG instalments using your myGov account linked to the ATO's Online services.
Select Tax > Manage > Tax registrations > Cancel. This option will only be available when you become eligible to exit PAYG instalments"
To exit PAYG Instalments you need to revise you Instalment Activity Statement to Nil and lodge prior to due date.
Please note that if you vary to Nil and have tax payable when lodging your tax return, penalties may be applied.
Hey @khoolantang - adding onto what's already been said.
As @KevColl has said, there may be tax consequences if you exit the PAYG Installment system when not eligible.
In addition to the link @YellowPotato included, I'd recommend also reading through some other content on our website:
If you're still unsure you can reach out to us directly or speak with a registered tax agent.
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