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  • Varying your pay as you go instalments due to COVID-19

    You can vary your pay as you go (PAYG) instalments throughout the year if you think you will pay too much, compared with your estimated tax for the year.

    To assist self managed super funds (SMSFs) who continue to be affected by COVID-19, we will not apply penalties or interest on varied instalments for the 2021–22 income year for excessive variations when you have taken reasonable care to estimate your end of year tax.

    This means making a reasonable and genuine attempt to determine your liability. When considering if a genuine attempt has been made, we take into account what a reasonable person would have done in your circumstances. Variations do not carry over into the new income year. If you made variations in the 2020–21 income year, you may need to vary again in 2021–22. Your varied amount or rate will apply for all of your remaining instalments for the income year, or until you make another variation.

    We encourage you to review your tax position regularly and vary your PAYG instalments as your situation changes. By making regular payments (instalments) throughout the year you will not have to pay a large tax bill when you lodge your tax return.If you realise you have made a mistake working out your PAYG instalment, you can correct it by lodging a revised activity statement or varying a subsequent instalment.

    If you are unable to pay your instalment amount you should still lodge your instalment notice and discuss a payment arrangement with us to ensure you will not have a debt at the end of the year. Remember, registered tax agents and BAS agents can help you with your tax.

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      Last modified: 13 Oct 2021QC 67021