I have noticed I have an activity statement 003 that is overdue and I'm not sure what this is for. My last tax lodgement, I owed money which I paid earlier this year. And now I've noticed this statement 003. I'm not a sole trader.
I've paid it as I panicked but it was a lot of money I really didn't have to pay for it.
Probably a PAYG instalment. You would have received notification of being entered into the system - notification through myGov. Check your inbox.
Starting PAYG instalments | Australian Taxation Office
Hi @Stepho26,
@Taxduck is on the right track with their thinking here.
A new activity statement form type like 003 usually relates to PAYG instalments (PAYGI). These are pre-payments towards your expected tax bill. PAYGI can be triggered after lodging a tax return with a payable amount, even if you're not a sole trader.
To check what the activity statement is for and how the amount was worked out, you can:
Log in to ATO Online Services via myGov
Go to Tax > Activity statements
Select the relevant period and click View to see the details
If it turns out you’ve paid an amount you didn’t need to, you may be able to request a refund or apply it to a future liability.
I too have received this & non business abn. Though I had a higher than usual tax payment which i paid in full in time.How do I get out of this to just pay at tax time.Should I pay the amount it says is overdue now?
Hi @Keggy,
You can’t skip a PAYG instalment once it’s been issued. PAYG instalments are separate from your year‑end tax return, and you still need to lodge the activity statement when it appears.
If the instalment amount doesn’t fit your current situation, you can vary it (including to $0) when you lodge the statement. Many people do this if their income drops or if the instalment isn’t needed.
If you’ve already paid the overdue amount, it will sit on your ATO account as a credit and will be applied when your next tax return is processed. You may also be able to request a refund if the instalment wasn’t needed.
PAYG Instalments aren’t just for businesses – the system can start automatically after a tax return shows a higher‑than‑usual payable amount. You can check the details of your instalment by going to myGov > ATO > Tax > Activity statements.
You can voluntarily opt into the PAYG instalment system, or you may be automatically entered by our system. This is usually because you've earned over a certain amount in the previous financial year, triggering the system to enter you. If anything changes, like your business ceases or you're not earning as much anymore you can request to vary your instalments or potentially opt out. You must meet certain criteria for this.
If you’re unsure, a registered tax agent can help check whether you should vary the instalment or stay in the system.
We also have a really handy article about the PAYG instalment system. Definitely worth a read.
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