PAYG instalment income – trusts
Pay as you go (PAYG) instalments is a system for making regular payments towards your expected annual income tax liability. It only applies to you if you earn business and/or investment income over a certain amount.
If you pay PAYG instalments, you still need to lodge an annual tax return.
We will notify you if you need to start paying by instalments under the PAYG instalments system. Alternatively you can voluntarily enter PAYG instalments and make payments towards expected annual income tax liabilities. Depending on your circumstances, we will also send you an activity statement or instalment notice before your PAYG instalments are due.
As an individual (including if you're in business as a sole trader), you can view, lodge, pay, vary and manage all your PAYG instalment obligations online if you have a myGov account linked to the ATO.
When to use these instructions
You can use these instructions to work out your proportion of the trust's instalment income if you are a beneficiary of a trust and you choose Option 2 (instalment rate) to work out PAYG instalments.
Your instalment income is generally the ordinary income you have derived in the period that is assessable income for that income year. Your assessable income will include your proportion of the instalment income earned by the trust for the period.