PAYG instalments for TOFA entities

Introduction

This fact sheet provides information about how the taxation of financial arrangements (TOFA) pay as you go (PAYG) instalment income rules affect:

• TOFA entities (other than individuals) that calculate PAYG instalment income using the income times rate option
• beneficiaries of a trust, where that trust is a TOFA entity
• partners in a partnership, where that partnership is a TOFA entity.

TOFA entities are entities that meet the TOFA thresholds or have chosen to use the TOFA rules. For more information about the TOFA rules, visit our website at www.ato.gov.au/tofa Individuals will only use the TOFA method for calculating instalment income when working out their proportion of a relevant partnership's or trust's instalment income.