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  • Stopping your PAYG instalments

    We will automatically remove you or your business from the PAYG instalments system when you no longer have to pay instalments. This will happen when:

    • you became entitled to and claimed the senior and pensioners tax offset (SAPTO) in your most recent tax return
    • you report business and/or investment income of less than $4,000 (for residents) or ($1 for non-residents) in your most recent tax return
    • you had a tax debt of less than $1,000 (after adjustments for PAYG instalments and voluntary payments) in your most recent tax assessment
    • you're an individual payer with an estimated tax liability of less than $500
    • you are under 18 and your most recent tax return shows Division 6AA income less than the lowest marginal threshold
    • you lodge a final tax return
    • your latest calculated PAYG instalment rate equals zero (if you‘re an individual or trust, or a company super fund or SMSF with instalment income of $2 million or more)
    • your tax professional lodges a 'further return not necessary'
    • you lodge a non-lodgment advice for the current year, which is a year later than your last lodged tax return
    • we are advised you are deceased.

    You can exit the system if you think you no longer need to pre-pay your income tax by instalments:

    When you can't exit PAYG instalments

    You can't exit from the PAYG instalments system if you have:

    • become bankrupt and are in a debt agreement (under Part IX of the Bankruptcy Act 1966) or personal insolvency agreement (under Part X of the act)
    • a debt of less than $500 that would have been more than $500 after including PAYG instalments for the year
    • received a refund that would have been a debt of more than $500 after including PAYG instalments for the year.

    Re-entering PAYG instalments

    If your circumstances change after you have stopped paying PAYG instalments, and you expect to earn over the entry threshold, or you want to plan ahead and budget for your income tax you can re-enter by:

    • lodging your tax return. Once it’s processed, if you’re eligible, we’ll automatically re-enter you in the system (and let you know when we’ve done this).
    • using your myGovExternal Link account linked to the ATO (for individuals, including sole traders)
    • contacting your registered agent
    • contacting us.
    Last modified: 26 Jul 2019QC 45470