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  • PAYG instalments: special rules for primary producers

    If you're a primary producer, the following rules affect how you report and calculate your pay as you go (PAYG) instalments:

    Averaging provisions

    Tax averaging provisions even out your income and tax payable (over a maximum of five years) to allow for good and bad years. This ensures you don't pay more tax over time than taxpayers on comparable, stable incomes.

    PAYG instalments don't affect your entitlement to income averaging. If the averaging provisions apply to your income, the instalment rate or amount we work out for you will take this into account.

    See also:

    Farm management deposits scheme

    The farm management deposits scheme helps you to deal with uneven income flows. You can make tax-deductible deposits during successful years, which can be redrawn during less successful years.

    If you make a farm management deposit, your instalment income for that period is reduced. In the years when you withdraw a farm management deposit, the amount must be included in your instalment income.

    See also:

    Forced disposal of livestock

    If you are forced to dispose of livestock, you can choose to spread any profit earned from the disposal over a period of five years. Alternatively you can choose to defer the profit and use it to reduce the cost of replacement livestock in the disposal year or the next five income years.

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    Payment options

    As a primary producer, a range of PAYG instalment payment options are available so that when and how much you pay aligns with changes in your income. You may be able to pay:

    • twice a year rather than quarterly
    • annually.

    We'll let you know which options are available to you.

    See also:

    Last modified: 25 Jul 2019QC 42318