I am currently enrolled in the PAYG instalments due to interest earned in previous financial year. I will stop being a tax resident at the middle of the financial year due to moving overseas for work and will stop receiving an Australian salary. I will notify my bank in order for them to withhold the appropriate 10% from interest earned. How can I stop my PAYG instalments when I leave before the next tax return? I know once I lodge my next return it will stop because I will stop being an Australian tax resident for part of the year but I would like to avoid having to pay more PAYG instalments until then.
All replies
Hi @funguy
Yes, you can exit PAYG instalments before your next tax return if you're no longer earning business or investment income in Australia. Since you'll stop being a tax resident partway through the financial year and won't receive Australian salary income, you can request to exit the system.
You can exit PAYG instalments using your myGov account linked to ATO online services:
- sign in to myGov
- select Tax > Manage > Tax registrations > Cancel
- this option will only be available when you become eligible to exit PAYG instalments.
You can also ask to exit through your registered tax agent or phone us on the individual enquiries line. The system recognises that you can exit if you're no longer earning business or investment income that would require instalments.
Once you cease being an Australian resident, you won't need to report foreign income to us from that date. Your bank withholding 10% from interest earned while you're a non-resident is correct.
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