Hi @Colin_Oscopy,
Your earlier PAYG instalment variation hasn’t been ignored, but it doesn’t permanently override how instalments are calculated.
PAYG instalments are reviewed and re‑set after your most recent tax return is lodged. When your 2024–25 return was processed, we recalculated your instalment rate or amount based on any likely growth in your income. The adjustment is based on changes in Australia’s gross domestic product (GDP). That recalculation applies automatically, even if you lodged a variation earlier in the year based on estimates.
A variation applies to the financial year it’s lodged for. Once a new assessment issues, we’re required to base instalments on that updated assessed position to keep them aligned with your most recent tax outcome.
If the revised instalment amount doesn’t reflect your expected income for 2025–26, you can lodge another variation to adjust it.
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