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  • Who needs to pay PAYG instalments

    We work out whether you need to pay PAYG instalments based on information you reported in your latest income tax return. If you are required to pay instalments, we will notify you.

    Generally, for individuals and trusts you will need to pay instalments if you reported $4,000 or more ($1 or more if you're not a resident) of gross business and/or investment income in your latest tax return, unless one of the following applies:

    • the tax payable on your latest notice of assessment is less than $1,000
    • your notional tax is less than $500
    • you are entitled to the seniors and pensioners tax offset.

    If you're a company or super fund, you'll generally need to pay instalments if either:

    • the instalment rate we calculate is more than 0% and your notional tax is $500 or more
    • the instalment income included in your most recent income tax assessment is $2 million or more
    • you're the head of a consolidated group.

    Notional tax is an estimate of the tax payable for the financial year, excluding capital gains tax. If you are superannuation fund or self-managed super fund, capital gains are generally included in this calculation.

    Special rules apply to PAYG instalments for partnerships, trusts, companies, primary producers and consolidated groups.

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    Last modified: 05 Apr 2018QC 45455