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  • Managing payments

    Tips on how to manage your payments, including prepayments and payment transfers.

    Find out about:

    See also:

    Budgeting for tax

    Keep an adequate amount aside to cover tax whenever you receive a payment that hasn't been taxed, such as:

    • income as a contractor
    • profit from selling shares or property (capital gains tax may apply)
    • rental income
    • interest and share dividends
    • sharing economy payments.

    You can use our income tax estimator to work out if you're likely to owe tax this income year.

    See also:

    Making prepayments

    You don’t need to wait for a bill from us to make a payment. You can make prepayments at any time and as often as you like to make it easier for you to manage your tax. What you need to do:

    We will hold prepayments you make towards your expected bill unless you, or your agent, request a refund. If you already have an existing debt with us, these payments may be used to pay that debt.

    See also:

    How to prevent debt

    Our research shows that you are more likely to stay on top of your payments to us if you:

    • keep amounts for GST, superannuation and income tax payments separate from your other business affairs – for example in a separate bank account or by making a prepayment to us
    • manage your cash flow and budget for monthly income and expenses
    • keep good business records and update them frequently – for example, weekly or monthly.

    It's important to have a good understanding of your payment obligations so you can plan ahead to pay the right amount at the right time.

    Request a payment transfer

    A payment transfer is the movement of a payment from one ATO account to another ATO account if a payment has been credited to the wrong account. You can request a partial transfer where a payment should have been made for two different accounts.

    You need to provide the following details to request a payment transfer:

    • your contact details, including your name and phone number – you must pass proof of identity on the account the payment is being transferred from
    • details of the account the payment was made to, including the PRN, account name, TFN or ABN
    • amount of the payment
    • payment method – for example, credit card or BPAY
    • date of the payment
    • payment receipt number (if known)
    • tax type – for example income or activity statement
    • details of the account that the payment is to be transferred to, including the PRN, account name, TFN or ABN
    • details of the amount of the payment to be transferred – you can request a transfer of the whole, or partial amount.

    You can request a payment transfer by phoning 13 11 42 during our operating hours.

    Businesses can use the Business portalExternal Link and registered agents can use Online services for agents.

    Last modified: 22 Jul 2020QC 50464