PAYG instalments - how to complete your activity statement

A downloadable version of this guide is available.

Introduction

Pay as you go (PAYG) instalments is a system for paying amounts towards your expected end of year income tax liability. We work out your actual income tax liability when we assess your annual income tax return. To make sure your income tax assessment takes into account the instalments you've paid through the year, you must finalise your PAYG instalments before you lodge your income tax return.

For more information about PAYG instalments, refer to Introduction to pay as you go income tax (PAYG) instalments (NAT 4637).

The dates given in these instructions are based on a balancing date of 30 June, which is when the majority of taxpayers in Australia balance their accounts.

Partnerships and activity statements

If you are a partner in a partnership, you may receive more than one activity statement. For example, if your partnership is registered for goods and services tax (GST):

• you'll receive an activity statement for the partnership to report GST, and
• each partner may also receive an activity statement to pay their own PAYG instalment.

If you are a partner in a partnership or a beneficiary of a trust, there are special rules to work out the amount to include in your individual instalment income. These rules are explained in: PAYG - working out your proportion of partnership instalment income (NAT 3494), and PAYG - working out your proportion of trust instalment income (NAT 3495).