PAYG Instalments for Business and Investment Income
Pay as you go (PAYG) instalments are regular prepayments of 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.
PAYG instalments are reassessed after you lodge your tax return. If you have higher or lower business and investment income in your latest tax return, your instalment amount or rate may change.
If you think you will earn business and investment income over the threshold, it’s a good idea to voluntarily enter PAYG instalments.
If you pay PAYG instalments using the amount method, your instalments have increased by the gross domestic product (GDP) adjustment factor. For the 2023-24 financial year, the rate is 6%.
The ATO encourage you to review your tax position regularly and vary your PAYG instalments if needed, to reflect your expected tax for the year and to avoid penalties.
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– an experienced team of Accountants providing Tax & Business Advisory services
– Bookkeepers to help you with BAS, IAS & Payroll
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– Mortgage Broking services for Home Loans, Investment Loans, Business and even Vehicle Finance
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