Pay as you go (PAYG) instalments allow you to make regular prepayments throughout the year towards the expected tax on your business and investment income. By paying regular instalments throughout the year, you should not have a large tax bill when you lodge your tax return.
You can vary your PAYG instalments if you think your current payments will result in you paying too much or too little tax for the income year. You must make variations on or before the payment due date. Your varied amount will apply for all your remaining instalments unless you make another variation before the end of the income year. If you have been impacted by the recent floods, you may vary your PAYG instalments, as well as claim a credit at label 5B on your activity statement for previous instalments paid.
The ATO will not apply penalties or charge interest on variations for the 2021–22 income year if you have taken reasonable care to estimate your end of year tax liability.
The ATO encourage you to review your tax position regularly and vary your PAYG instalments if your situation changes.
Calculating and paying the right PAYG instalment amounts will help you manage a healthy cash flow.
If you have any questions, feel free to ask them in the comment section. We will be happy to answer all your queries.
Disclaimer : All the content (including Blogs, newsletters, Fact sheets, calculators etc.) provided on this website is general information only and is neither intended to nor be considered personal financial or taxation advice. The content has been prepared without taking into account your personal circumstances, financial situation or objectives. In making any financial, investment or taxation decision, information provided on this website should not be relied upon and you should seek personal advice. AVS Business Services Pty Ltd disclaims any responsibility for any decision that you make, based on the information provided on this website.All the information provided on this website is prepared in good faith and based on AVS’s knowledge and understanding of superannuation, taxation and other relevant laws and is believed to be correct at the time of writing the information. However as the laws, being dynamic by nature, keeps on changing, you should not rely on the information provided on this website without first obtaining advice from qualified professional.