Use these tips to help report pay as you go (PAYG) instalments correctly on your clients' company tax return.
Include total PAYG instalments for the year
You must include the total of the company’s PAYG instalments for the income year at label K of the calculation statement. This is regardless of whether the instalments have actually been paid.
Instalment amount
If you use the instalment amount (option 1 on the activity statement) and:
- you did not vary it, at label K on your tax return enter either
- the total amounts from T7 (Instalment amount) on the activity statements for the income year
- the amount from T5 (Tax payable) on the annual instalment activity statement
- you varied it, at label K on your tax return enter either
- the total varied amounts from 5A on the activity statements for the income year
- the varied amount from T6 on the annual instalment activity statement.
Instalment rate
If you use the instalment rate (option 2 on your activity statement):
- From the activity statements for the income year, deduct the amounts at 5B (Credit from PAYG income tax instalment variation) from the amounts at 5A (PAYG income tax instalment).
- Enter the sum of the result at label K on the tax return.
Don't include 'wash-up' or residual payments
At label K (PAYG instalments raised), record all the monthly, quarterly or annual instalments that were raised during the financial year.
Exclude instalment amounts that you paid this year which related to previous financial years.
Reporting other credits
Don't include PAYG instalment amounts at label H7 (Other credits). This is for credits such as the company’s share of credits from a partnership or trust where tax was withheld because an Australian business number (ABN) was not quoted.
See also
Find out about reporting PAYG instalments on a company tax return and how to get it right.