Option 1 – instalment amount

Option 1 (instalment amount) is available to all individuals and most businesses. However, companies and super funds with business and/or investment income of more than $2 million do not have this option unless they are annual payers.

The advantage of this option is that we calculate instalment amounts from information you've previously reported so you don’t have to work it out yourself. We adjust these figures to take into account likely growth in your business and/or investment income. This is based on growth in Australia's economy, measured by GDP.

If you're eligible for this option, the amount will appear under option 1 on your activity statement or instalment notice. If you're not eligible, the amount shown in option 1 will be crossed out.

The instalment amount is shown on your activity statement at label T7 or on your annual PAYG instalment notice at label T5.

If you prefer to use this option, simply complete the details under option 1 on your first activity statement or instalment notice. If you later want to change to option 2, you need to wait until the first quarter in the next income year.

You must lodge and pay any amounts due by the date shown on your statement or notice. If you believe your PAYG instalment amounts will result in you paying too much tax for the current income year, you can vary the amount you pay.

If you've registered for myGov and linked your account to the ATO you will be able to lodge and pay online.

Lodge and pay

For other ways to pay, see Payments to ATO.

See also:

Last modified: 30 Nov 2015QC 45459