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Instalment income

Instalment income is your gross business and investment income, excluding GST. You use it to calculate pay as you go (PAYG) instalments.

Last updated 8 March 2022

Income you include

Your instalment income is all the ordinary income you earned from your business and investment activities for the quarter (excluding GST).

Make sure you include your gross income. Do not use your net income, taxable income, or income reduced by any deductions.

Instalment income includes:

  • gross rent
  • dividends received or reinvested on your behalf (do not include imputation credits)
  • royalties
  • foreign pensions that are assessable in Australia
  • your share of the income from a partnership or trust
  • foreign income
  • interest received or credited to an account
  • gross sales (excluding GST)
  • gross fees for services (excluding GST)
  • income earned from the sale of goods or services you sell or supply
  • gross amount of income if tax was withheld because you did not provide your tax file number (TFN) or Australian business number (ABN)
  • withdrawals from farm management deposits – if you make a farm management deposit, this reduces your instalment income for that period
  • fuel tax credits
  • net capital gains or net losses if you are a super fund or self-managed super fund
  • JobKeeper payments.

If you receive any of the above payments in cryptocurrency, you need to include the value of the cryptocurrency in Australian dollars as part of your ordinary income.

Income you do not include

Instalment income does not include:

  • GST, wine equalisation tax or luxury car tax that you charge your customers, clients or tenants
  • income such as salary and wages, where amounts were withheld or should have been withheld under the PAYG withholding system. However, if amounts were withheld because you did not provide your TFN or ABN, the income is included in instalment income
  • any franking credit recorded on a dividend statement
  • any amount deemed to be a dividend under income tax laws
  • capital gains, unless you are a super fund or self-managed super fund
  • exempt income, such as the family tax benefit or child care benefit payments
  • payments made and non-cash benefits provided under the National Rental Affordability Scheme
  • grants under the energy grants credits scheme, including the product stewardship (oil) benefit.

If you are a partner in a partnership, to work out your PAYG instalments you may need to calculate how much instalment income you receive from the partnership.