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Cos_1982(Newbie)Newbie
15 Apr 2026

I have a balance overdue for an activity statement which relates to a past financial year. What i don't understand is that should i need to be paying this amount relating to a past year if i have lodged my tax returns to date and paid all my tax owing?


I don't understand why i need to pay for a past year if i am up to date with my tax return and payment of tax debt for that year.


I do have an investment property which all it goes into my personal income tax return as its in my name. This is all up to date with my personal income tax return


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52 views
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KaraATO(Community Support)Community Support
15 Apr 2026

Hi @Cos_1982,


Activity statement debts and income tax debts are separate obligations in your ATO account. Paying your income tax after lodging your tax return doesn't clear an outstanding activity statement debt from a previous year.


Activity statements report different tax types compared to your annual income tax return. If you have an overdue balance on your activity statement account (account 002), this is a separate debt that needs to be lodged and paid, even if your income tax returns are up to date and paid.


For rental property income from your investment property, you're correct that this income is reported in your personal income tax return since the property is in your name. However, this again is different from activity statement obligations when related to reporting requirements such as PAYG instalments.


Start by looking at the overdue activity statement balance through your ATO online services. This will show you exactly what the overdue amount relates to.


If you're unsure why you have an activity statement debt is there or you think it doesn't look correct, give us a call. We can go over the accounts to see what's happening and provide a more thorough account explanation.

YellowPotato(Taxicorn)Taxicorn
16 Apr 2026

Activity Statement and Income tax accounts are separate. I don't know what you owe but most likely answer is PAYG instalments in activity statement account


If it's PAYG instalment, it makes sense you owe money despite up to date with your tax returns. This is because your tax return will have tax credits for PAYG instalments RAISED, regardless if it's paid or not.


Simplistic Example: If tax return says $2000 payable and $1000 PAYG instalment had been raised for that tax return and haven't paid the PAYG instalment. The $2000 payable is already including the unpaid $1000 PAYG instalment, then in reality $3000 is owed. Just that it would be $2000 in the income tax account and $1000 in activity statement account.


I wasn't able to find ATO material using the language 'PAYG instalment raised' in the individual tax return instructions, but here's the equivalent for company

  • "PAYG instalment raised"
  • https://www.ato.gov.au/forms-and-instructions/company-tax-return-2025-instructions/instructions-to-complete-the-company-tax-return-2025/calculation-statement/calculation-statement-labels-i-[Removed by moderator]-and-s#ato-KPAYGinstalmentsraised

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Why do I still have an overdue balance on ATO account 002 if all my tax is paid? | ATO Community