• Instalment rate

    An instalment rate is a percentage figure that approximates the proportion of your business and/or investment income that you must pay as tax, based on your last assessed income tax return.

    To work out the amount of your PAYG instalment, multiply the instalment rate by your instalment income for a quarter.

    There is no need to vary just because your income has gone up or down since your last tax assessment. The instalment rate is a percentage, so the amount you pay will go up or down with your income.

    Usually, you would vary your instalment rate only if there is a significant change in the proportion of your business and/or investment income that will be paid as tax. For example, if you have either:

    • much higher or lower expected tax deductions for a similar level of business and/or investment income
    • less or more business and/or investment income for the same level of expected tax deductions (for example, your running costs are about the same).
      Last modified: 17 Nov 2017QC 16159