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Who can pay using the instalment amount

If you are eligible to use the PAYG instalment amount, it will be shown on your activity statement or instalment notice.

Last updated 8 March 2022

If you are eligible to use the pay as you go (PAYG) instalment amount, it will be shown on your activity statement or instalment notice.

Who is eligible to pay using the instalment amount

Based on the information in your tax return, we determine whether you are eligible to pay your PAYG instalments using the instalment amount option. We will show this on your activity statement or instalment notice.

You can use the instalment amount if you are:

  • an individual (including sole traders)
  • a trust
  • a super fund that          
    • is an annual payer
    • has business and investment income of $2 million or less
     
  • a company that          
    • is an annual payer
    • has business and investment income of $2 million or less
    • is a small business entity with an aggregated turnover of less than $10 million
     

From 1 July 2021, a business entity with an aggregated turnover of less than $50 million can use the instalment amount option.

If you are eligible to pay using the instalment amount, the amount will be shown at Option 1 on your activity statement.

If your only reporting obligation is PAYG instalments, we will send you an instalment notice instead of an activity statement.

How to pay using the instalment amount

To pay using the instalment amount, complete the details under option 1 on your first activity statement or instalment notice for the income year. You will then pay using an instalment amount for the rest of the year.

If you want to change to Option 2 (instalment rate), you will need to wait until the first quarter of the next income year.

You need to pay your instalment amount by the date shown on your activity statement or instalment notice.

If you think your PAYG instalment amount will result in you paying too much or too little tax for the current income year, you can vary the amount.

QC68097