How to vary pay as you go (PAYG) instalments

When you should vary your PAYG instalment amount or instalment rate

The instalment amount or instalment rate we calculated is based on your business and investment income tax from your last assessed income tax return.

Usually, you would vary only if your situation has changed and you think the amount or rate we calculated will result in you paying significantly more (or less) than your expected tax payable on your business and investment income for the year.

You do not have to vary your PAYG instalment if the amount or rate we calculated results in you paying too much - you will receive a refund of any overpayment when we assess your income tax return.

If the instalment amount or instalment rate we calculated is insufficient to meet your income tax liability for the year, you simply pay the balance owing when we assess your income tax return.

If you use the instalment amount or instalment rate we calculated, there is no risk that you will incur the GIC.

Whether or not you vary your PAYG instalment, when we have processed your income tax return, we will credit your PAYG instalments against your assessment to calculate whether:

• you owe more tax
• we owe you a refund.

Sections within When you should vary your PAYG instalment amount or instalment rate

• Instalment amount
• Instalment rate