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  • Exiting PAYG instalments

    If you no longer have to pay instalments, we will automatically remove you from the PAYG instalments system.

    We will remove you from the PAYG instalment system if any of the following occur:

    • you become entitled to and claim the senior and pensioners tax offset in your latest tax return
    • your latest tax return, for the most recent year of income, indicates business and/or investment income of less than $4,000 for residents or $1 for non-residents
    • you had a tax debt of less than $1,000 (after adjustments for PAYG instalments and any voluntary payments) in your most recent assessment
    • you are an individual payer who has a notional tax amount of less than $500
    • your latest tax return for the recent income year indicates Division 6AA income less than the low marginal threshold
    • you lodge a final return
    • your latest calculated instalment rate equals zero
    • your accountant lodges a 'further return not necessary' or you lodge a non-lodgment advice for the current year which is a year later than the base assessment year
    • we are advised you are deceased.

    Alternatively, you can contact us to remove you from the system if your circumstances change.

    Eligible individuals (including sole traders) with a myGov account linked to the ATO can exit the PAYG instalments system online.

    Manage your PAYG instalments

    When you can't exit PAYG instalments

    There are several circumstances where you will not qualify for removal from the PAYG instalments system, including if you have:

    • become bankrupt and are in a debt agreement (Part IX of the Bankruptcy Act 1966) or personal insolvency agreement (Part X of the act)
    • a debt of less than $500 and it would have been more than $500 after adding back PAYG instalments for the year
    • received a refund which would have been a debt of more than $500 after adding back PAYG instalments for that year.
    Last modified: 30 Nov 2015QC 45470