• Annual instalments

    Annual pay as you go (PAYG) instalments are a single lump sum payment made towards your expected tax liability on business and/or investment income for the year.

    If your income year ends on 30 June, the dates below relate to you. If you've been granted a substituted accounting period, different due dates apply.

    Find out about:

    Eligibility for the annual instalments option

    You may be eligible to pay PAYG instalments annually if you meet the following criteria, at the end of your first instalment quarter of the income year:

    • your most recent notional tax assessment was less than $8,000
    • you're registered for GST, and you report and pay GST annually
    • you're a partner in a partnership that is registered for GST and reports and pays GST annually
    • in the case of a company, you're not part of an instalment group, a head company of a consolidated group or a participant in a GST joint venture.

    Note: An instalment group is a group of companies controlled by a head company, unlike consolidated groups, which can include trusts/partnerships as well as companies.

    Choosing annual instalments

    Self-preparers

    If you are eligible to pay PAYG instalments annually, we'll let you know. If you would like to pay your instalments annually, you'll need to tell us by the due date of your first quarterly PAYG instalment of the year, as shown your letter. Any changes requested after this date will take effect the next year and you will have to pay quarterly instalments until then.

    You can make your request to choose annual instalments online through your myGovExternal Link account linked to the ATO (for individuals including sole traders). Alternatively phone 13 72 26 and follow the prompts.

    We will notify you of the outcome of your request. If your request is successful, we'll send you an annual instalment notice, telling you how much to pay and when it's due.

    Tax agents

    If you're a registered tax agent and you have clients who are eligible and wish to pay annual PAYG instalments, you can use our online form, Choosing to pay an annual PAYG instalment. This allows you to transmit details (for up to 20 clients at a time) online, providing you meet the minimum system requirements. If you have more than 20 clients, you will need to transmit more than one form.

    Next step:

    When to pay

    Self-preparers

    For those with a financial year ending 30 June who prepare their tax return themselves, you do not need to pay the annual instalment. You can just complete your income tax return for the year prior to 31 October.

    Tax agents

    For those with a financial year ending 30 June, annual instalments are due on 21 October. If you've been granted a substituted accounting period, then the due dates to lodge and pay your instalment will be different.

    You need to pay your annual instalment before you lodge your tax return. If you've already lodged your tax return before paying, you will need to pay the amount we calculate for you at T5 on your instalment notice by 21 October. Do not vary or calculate your instalment amount as this may result in the wrong amount being credited towards your tax return.

    If you pay the amount calculated by us at T5 on your instalment notice, you don't need to lodge your notice. Simply pay the amount by 21 October.

    General interest charge (GIC) will apply to any amount not paid by the due date.

    You will receive credit for the PAYG instalment amount which will appear on your notice of assessment.

    You will continue to pay your instalments annually in future years unless your circumstances change or you tell us you no longer want to do so.

    Last modified: 12 Jul 2017QC 45466