• Option 1 – instalment amount

    If you choose Option 1 'instalment amount', you'll pay the pay as you go (PAYG) instalment amount we calculate. We calculate this amount from information reported on your tax return.

    Option 1 (instalment amount) is available to:

    • individuals (including sole traders)
    • trusts
    • super funds that are annual payers or have business and/or investment income of $2 million or less
    • companies that
      • are annual payers
      • have business and/or investment income of $2 million or less
      • are a small business entity – that is, have an aggregated turnover of less than $10 million.

    The advantage of the instalment amount 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 or investment income. This is based on growth in Australia's economy, measured by gross domestic product (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 Paying the ATO.

    See also:

    Last modified: 22 Jun 2017QC 45459