Lodged your tax return and received a PAYG instalment notice?
Turns out PAYG instalments aren't just for businesses. There are other factors that lead individuals to be automatically entered into PAYG instalments. Investment income is a common reason people forget about!
If you're entered into PAYG instalments, we'll tell you through ATO online services or by post.
What's the point of PAYG instalments?
PAYG instalments are designed to help you avoid a large tax bill when you lodge your return.
Generally, we look at your previous tax assessment and what you declared as income, and divide the estimated tax for the year into quarterly payments. These payments are then credited against your tax payable, meaning you'll pay less or no tax when you lodge!
Think your instalment income amount is too high or too low?
You can always vary your payments when you lodge your activity statement or instalment notice. If you pay too much, we'll refund it to you after you lodged your tax return. If you pay too little, you;ll have to pay the shortfall.
Can I stop my instalments?
You can only exit the PAYG instalments yourself if you stop earning business or investment income. We'll also automatically remove you from PAYG instalments when you no longer meet the entry criteria.
Still have questions? Check out our PAYG instalment article to learn more.
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