If you're a taxable not-for-profit and earn instalment income over a minimum amount known as the entry threshold, we may automatically enter you into pay as you go (PAYG) instalments.
PAYG instalments are regular prepayments of the tax on your instalment income.
Here's what you need to know when starting:
- We'll let you know when you've entered the PAYG instalment system, what you need to pay and what your lodgment dates are.
- You'll hear from us via:
- Online services for business, or Standard Business Reporting software
- a letter in the mail to you or your registered agent if none of the above services apply to your circumstances.
- You can start making payments once we send you a business activity statement (BAS) or instalment notice.
- When you lodge your tax return, the PAYG instalments you've paid during the year are offset against your tax, leaving you with little or no tax to pay.
- If your circumstances change, you can vary your PAYG instalments.
Remember, registered tax agents and BAS agents can help you with tax advice.
Here's what you need to know when starting pay as you go (PAYG) instalments.