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  • Partnerships and PAYG instalments

    Under the PAYG instalment system, your instalment income may be different if you receive PSI and operate as a partnership. A partnership will not be liable to pay income tax and therefore is not required to pay PAYG instalments.

    If your business is a partnership, you can work out your instalment amount (as an individual partner) for each period by using the 'instalment rate' option. Your share of the instalment income is based on the partnership's instalment income for the period.

    If PSI is attributed to an individual, the attributed amount is not included in the assessable instalment income of the partnership. In some circumstances, PSI may not be attributed to the individual who earned it, for example, where allowable deductions have reduced the attribution amount to nil.

    Any amounts of PSI that are not attributed to an individual and remain as the partnership's income are included when working out the instalment income. If this occurs, you should consider varying your instalment rate.

    Any attributed income that has additional PAYG withholding obligations is not instalment income.

    See also:

      Last modified: 30 Mar 2017QC 17515