Each year our two returns are lodged and our tax assessments are paid ASAP. A variance of income occurred which caused my wife to have an increased tax payable, whereupon she was put into the PAYG protocol. We are accustomed and able to pay tax as it becomes due without the unnecessary imposition of PAYG, and would like to know if it is possible to revert to the previous protocol.
You can exit the PAYG instalment system if eligible. See below
Tax rates – Australian resident | Australian Taxation Office
However, you can't exit on the basis of preference.
Thanks
Seems like ATO has 'doubts' as to whether a taxpayer can cope with an increased tax liability. Wonder if it should be an 'opt-in/opt-out' option when it first becomes 'applicable'.
Haven't really seen this since PAYG GST and (shudder) Provisional Tax.
Guess we cannot change the Law...
Provided incorrect link earlier. Correct one below
Stopping PAYG instalments | Australian Taxation Office
When entering taxpayers into the instalment system the ATO state they are helping you. From ATO. " ... planning ahead for your income tax is important to help you keep a healthy cash flow.
PAYG instalments help you do this, this is how it works.'
Starting PAYG instalments | Australian Taxation Office
Not always the case. From an income point of view those instalment amounts could be placed into an interest bearing account.
However, the PAYG withholding system for employees works the same way. There is no opt in or opt out of that system either.
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