PAYG Instalments: Which Financial Year Do They Cover?

 Author: NikkiATO(Community Moderator)Community Moderator

17 Apr 2026

Hi @raani,

From what you’ve explained, it sounds like they’re for the 2026 financial year.

PAYG instalments are prepayments of tax for future income years, not for the year you’ve just lodged.

If you lodged your 2025 tax return and were then placed into the PAYG instalment system:

• The instalments raised after assessment are for the 2025–26 income year onwards.
• They’re based on your most recent assessed tax position and are intended to help you pay tax gradually on income you’re expected to earn in the current or future years.
• They’re not additional tax for 2024–25 – that year’s tax position is already finalised through your return and notice of assessment.

Our Answers to your PAYG instalment questions article has some great info, if you’d like to check it out.

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