24 June 2020
Pay as you go (PAYG) instalments allow you to make regular payments towards your expected end of year income tax liability. Every year we adjust PAYG instalment amounts using a formula known as the gross domestic product (GDP) adjustment.
For the 2020-21 income year, there is no GDP adjustment to PAYG instalments. This was recently legislated in response to COVID-19.
PAYG instalment variations made in 2019-20 won't carry over into the new income year. If you think you will pay too much (or too little) tax for the 2020-21 year, you will need to vary your instalments again.
Calculating and paying the right PAYG instalment amounts will help you manage a healthy cash flow.
Our approach for penalties and interest charges made to variations due to COVID-19 are being reviewed.
Remember, registered tax agents and BAS agents can help you with your tax.
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