How to vary pay as you go (PAYG) instalments

Step 4: complete your activity statement or instalment notice

Write your estimated tax for the year (from step 2) in the box T8 on your activity statement.

Write your varied instalment amount for the quarter (from step 3) in box T9. If your varied instalment amount is a negative amount or zero, write '0' at T9.

Write your variation reason code in box T4 (see the list of reason codes). Do not leave T4 blank.

Transfer the varied amount from T9 to box 5A. (Ignore this step if you are using Form T as there is no 5A box.)

If the varied instalment amount you worked out at step 3 is zero or positive, go straight to step 5.

If the varied instalment amount you worked out at step 3 is negative, you are entitled to claim a credit from PAYG instalments you paid earlier in the income year. If you want to claim a credit against instalments paid in previous quarters, write the amount you worked out at step 3 in box 5B on your activity statement. However, write it as a positive amount (do not show the minus sign).

Even if you are entitled to a credit, you do not have to claim it in your activity statement. If you overpay your PAYG instalments we will credit them to you when we assess your annual income tax return.

Complete any other labels you are required to.

If you are satisfied that the information you have provided is not false or misleading, sign and date the form.

Sections within How to vary your instalment amount (option 1)

• Step 1: decide whether you want to vary
• Step 2: estimate the tax on your business and investment income for the year
• Step 3: work out the proportion of your estimated tax to pay in this instalment
• Step 4: complete your activity statement or instalment notice
• Step 5: lodge and pay