How to vary pay as you go (PAYG) instalments

PAYG instalments

PAYG instalments is a system for you to pay your expected tax liability on your business and investment income in instalments for the current income year.

We use your last assessed income tax return to calculate and advise you of:

• a PAYG instalment amount that you pay, or
• an instalment rate that you can use to work out your instalment amount yourself.

Some quarterly payers pay four PAYG instalments a year. These quarterly payers (such as some primary producers and special professionals) are eligible to pay two instalments each year.

You will receive a quarterly activity statement or instalment notice that tells you your tax obligations, including your PAYG instalment amount or rate.

This guide will help you work out how to vary your instalment amount or rate on your activity statement or instalment notice.