Show download pdf controls
  • PAYGI instalments – activity statement variations and revisions

    You can change your client’s pay as you go (PAYG) instalment on their activity statement if:

    • they will pay too much or not enough tax for the year using the current rate or amount
    • you realise you’ve made a mistake after their activity statement was lodged.

    Use the following tips to ensure your client’s PAYG instalment changes are calculated and lodged correctly.

    Correcting a mistake

    If a mistake was made when calculating your client’s PAYG instalment and their activity statement has already been lodged, you can correct it by either:

    • revising their current activity statement
    • varying their instalment in a later activity statement, as long as it’s from the same income year.

    See also:

    Changing the amount your client pays

    If your client‘s financial situation has changed, you may wish to vary their PAYG instalments so they don’t pay too much or too little tax by the end of the year.

    You can lodge a variation on their current activity statement (if it hasn’t yet been lodged) or as a revision to a lodged activity statement.

    If your client pays by option 2 ‘instalment rate’, they don’t need to vary their rate if their income changes. When paying by instalment rate, they pay a proportion of their income, so their PAYG instalment amount changes as their income changes. They’ll only need to vary their rate if there‘s a significant change in their proportion of their business and investment income that needs to be paid as tax.

    Your clients don’t have to vary their instalments. If the amount or rate we calculate results in them paying too much tax, they’ll receive a refund after their tax return has been processed. If it’s not enough to meet their tax liability for the year, they just need to pay the balance after their tax return has been lodged.

    See also:

    Calculating the variation

    To vary the rate or amount, you first need to estimate your client’s business and investment income and estimated tax payable on this income. You can use the PAYG instalments calculator or our instructions to work this out.

    The varied amount or rate will appear on your client’s activity statements for the rest of the income year or until another variation is made.

    Next steps:

    Due dates for revisions and variations

    You need to lodge your client’s variation or revision before both when their:

    • PAYG instalment is due
    • income tax return for the year is lodged.

    See also:

    Lodging a revision or variation

    It’s quick and easy to lodge revisions and variations online through the Tax Agent Portal or BAS Agent Portal.

    Interest and penalties

    If you vary or revise your clients PAYG instalments, it’s important not to underestimate the amount, rate or their instalment income. We compare their instalments to their total tax payable on your instalment income for the year. If their instalments are less than 85% of that total, they may be subject to general interest charge on the difference, as well as penalties.

    See also:

      Last modified: 21 Mar 2018QC 43836