• Calculating the amount you pay

    As a pay as you go (PAYG) instalment payer you may be able to choose between two options to calculate how much to pay:

    1. by instalment amount, or
    2. by instalment rate.

    If you’re eligible to choose, these options will be shown on your first activity statement or instalment notice, and you must indicate your choice on this form. Once you’ve chosen an option, you must continue to use that option for the rest of the financial year. You can change your option on your first quarter activity statement of the next financial year.

    If you choose Option 1 'instalment amount', you'll pay the amount we calculate.

    If you select Option 2 'instalment rate', you'll work out the amount yourself using the instalment rate we provide and your instalment income.

    When we calculate your instalment rate or amount we use information from your most recently lodged income tax return. At times this calculation can produce a rate or amount which might not reflect your circumstances.

    If your calculated rate exceeds the highest applicable income tax rate, we will automatically reduce it to a more reasonable rate which will appear on your activity statement.

    If you believe your instalment rate or amount doesn’t represent your current circumstances, you can make it higher or lower by varying it.

    Next steps:

    See also:

    Last modified: 30 Jun 2017QC 45458