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sri2024(Newbie)Newbie
22 Oct 2024


I have lodged tax return and ready to pay, however I just got noticed that the ATO asks me for paying both Income Tax 551 (IT 551) and Activity Statement 003 (AS003). The amount of bill in AS 003 is based on my income from bank interest in which it was already included and calculated in my tax return for IT 551. As I do not have any other business, I think this is double charge for the same source of income (bank interest of my saving). Do I need to pay IT 551 only as I have already declared all of my income sources or I also have to pay bill of AS 003 (which is unfair I think due to double charge)? Thank you soo much for your response.

2,622 views
1 replies
2,622 views
1 replies

Most helpful response

Most helpful reply

MelATO(Community Support)Community Support
24 Oct 2024

Hi @sri2024,


You need to pay both.


AS 003, sounds like you were put on pay as you go instalments (PAYGI). This means prepaying tax on your interest earned in your bank account.


When the tax return is processed, we credit the PAYGI amounts to the return as tax paid.


So, if you haven’t paid the PAYGI amounts you’re receiving a credit on your return that you’re not entitled to. If we were to remove those credits from the return and paid them to the AS 003, the debt on the tax return would be larger.


Anyone that is receiving $4000 or more in instalment income such as:

  • Gross rent
  • Interest
  • ABN income

Are put onto the PAYGI to prepay their tax liability for the year.


It’s the same principle as when an employer withholds tax every pay period and sends it to us to prepay the tax liability for the year.

All replies

Most helpful reply

MelATO(Community Support)Community Support
24 Oct 2024

Hi @sri2024,


You need to pay both.


AS 003, sounds like you were put on pay as you go instalments (PAYGI). This means prepaying tax on your interest earned in your bank account.


When the tax return is processed, we credit the PAYGI amounts to the return as tax paid.


So, if you haven’t paid the PAYGI amounts you’re receiving a credit on your return that you’re not entitled to. If we were to remove those credits from the return and paid them to the AS 003, the debt on the tax return would be larger.


Anyone that is receiving $4000 or more in instalment income such as:

  • Gross rent
  • Interest
  • ABN income

Are put onto the PAYGI to prepay their tax liability for the year.


It’s the same principle as when an employer withholds tax every pay period and sends it to us to prepay the tax liability for the year.

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