I have somehow incorrectly been enrolled into PAYG. I am employed full time on a salary as my income (outside of minimal shares). I now am in arrears for approx $3k for April-June. Do I have to pay that in order to be able to claim 5b Credit? I am so confused how this has even been set up.
Hi Mozzerita,
You've likely been enrolled in PAYG instalments automatically because you met certain criteria from your last tax return. This could happen if you had:
We generally send a letter if you've been entered into the PAYG instalment system letting you know how much you need to pay and when, and the dates you need to lodge by.
It might be worth checking what address is stored on your tax account, as it may not be up to date. You can check and update this online.
We have a handy article on ATO Community that can help answer your PAYG instalment questions.
You don’t need to pay the $3,000 shown on the quarter 4 (April to June) PAYG activity statement to claim a 5B credit. You can wait until you lodge your tax return, and any PAYG instalment credits will be applied when your final tax position is calculated.
If you believe you shouldn't be in this system, you can request to exit PAYG instalments using your ATO Online Services or phoning our business line.
Hi Mozzerita,
You've likely been enrolled in PAYG instalments automatically because you met certain criteria from your last tax return. This could happen if you had:
We generally send a letter if you've been entered into the PAYG instalment system letting you know how much you need to pay and when, and the dates you need to lodge by.
It might be worth checking what address is stored on your tax account, as it may not be up to date. You can check and update this online.
We have a handy article on ATO Community that can help answer your PAYG instalment questions.
You don’t need to pay the $3,000 shown on the quarter 4 (April to June) PAYG activity statement to claim a 5B credit. You can wait until you lodge your tax return, and any PAYG instalment credits will be applied when your final tax position is calculated.
If you believe you shouldn't be in this system, you can request to exit PAYG instalments using your ATO Online Services or phoning our business line.
Thank you so much
Yes I have updated my address and have exited the PAYG installments this morning.
Further complicating this is: Earlier this year I set up instalments to pay for a tax debt and now I'm being advised that due to this PAYG amount being owed these repayment instalments are at risk of being cancelled. Can I lodge the 5B credit and how do I do this? It's confusing
Hi @Mozzerita,
Since the $3,000 instalment was for April - June, you only need to lodge your tax return to claim any owed credits. If your tax return outcome was a credit, those credits will be applied to your payment plan.
You were likely advised the payment plan may be cancelled because a condition of being in a payment plan is that you pay your future tax obligations on time. If you don't the plan may automatically default.
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