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  • PAYG instalments for primary producers and special professionals

    If you're a primary producer or special professional such as a sportsperson, author, inventor, performing artist or production associate, there are a range of payment options available to you to help align your pay as you go (PAYG) instalments with changes in your income.

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    Payment options

    Depending on your circumstances, you can pay:

    We will let you know which options are available to you.

    Regardless of which option you use, you can vary the amount you pay if your circumstances change.

    Quarterly instalments

    If you pay quarterly instalments, you work out your PAYG instalments using an instalment rate we provide you, multiplied by your instalment income.

    As a primary producer or special professional if you pay using an instalment amount, you pay only two instalments each year instead of four.

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    Two instalments

    We'll tell you if you're eligible to pay your PAYG instalments in two instalments per year.

    Generally, you'll be eligible if:

    • you're a quarterly PAYG instalment payer and pay using the instalment amount worked out by us
    • on your most recent tax return your gross income from primary production or special professional activities was more than your deductions for those sources of income.

    We work out your instalment amounts using information from your latest tax return, which we adjust to take into account likely growth in your business and/or investment income.

    You'll pay 75% of your instalments by 28 April and the remainder by 28 July.

    If you want to change to quarterly instalments, you need to tell us by the date your first quarterly instalment would be due. If you don’t, you will continue to pay two instalments per year. If you prefer to pay four instalments per year, you will need to work out your instalments yourself using the ‘instalment rate’ option (option 2).

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    Annual instalment

    An annual instalment is one lump sum payment made toward your expected tax liability on your business and investment income for the year.

    We will let you know if you're eligible to pay your instalments annually. You'll need to tell us that you want to pay annually by the date your first quarterly PAYG instalment would be due. If you don’t tell us, you'll have to pay quarterly instalments.

    When it's time to make your annual payment, we'll send you an instalment notice telling you how much to pay.

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    Monthly instalments

    If you're required to pay monthly instalments we will let you know. You can't elect to pay monthly instalments.

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    Varying the amount you pay

    You can vary your instalments if you think the amount or rate we worked out will result in you paying more (or less) than your expected tax for the income year.

    When you vary your instalments it's important not to underestimate your amount, rate or income. We compare your instalments to the total tax payable on your instalment income for the income year. If the value of your varied instalments is less than 85% of that total, you may be subject to general interest charge (GIC) on the difference, as well as penalties.

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    Special rules for primary producers

    If you are a primary producer, the calculations for your PAYG instalments may be affected by:

    • averaging provisions
    • farm management deposits
    • forced disposal of livestock.

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      Last modified: 01 Jul 2021QC 16375