Hi @RLC,
There isn’t a requirement to vary – it’s optional.
If your income has dropped and you now only receive dividends or other investment income, the instalments may no longer reflect your actual tax position. You have two options:
- Vary your PAYG instalments if you expect your tax for the year will be lower. This reduces or stops future instalments, but you need to take reasonable care when doing it. If you vary too low and still have a tax liability at year end, interest or penalties can apply.
- Leave the instalments as they are and settle everything when you lodge your next tax return.
Any excess instalments you’ve paid will be credited or refunded at that time.
Your instalments will also be reassessed automatically after you lodge your next tax return, so if your income remains lower, they may reduce or stop for future years.
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