You may be able to exit pay as you go (PAYG) instalments if you are no longer earning business or investment income.
We will automatically remove you from PAYG instalments if you:
- are eligible to claim the senior and pensioners tax offset in your tax return
- report business and investment income of less than $4,000 (for residents, or $1 for non-residents) in your tax return
- have a tax debt of less than $1,000 (after adjustments for PAYG instalments and voluntary payments) in your tax assessment
- have a calculated PAYG instalment rate of 0.0%
- have an estimated (notional) tax liability of less than $500
- are under 18 and your tax return shows Division 6AA income less than the lowest marginal threshold, or
- lodge a final tax return or non-lodgment advice, or your tax agent lodges a 'further return not necessary'.
We will also remove a taxpayer from PAYG instalments if we are advised they are deceased.
We will automatically remove a trust from PAYG instalments if it:
- has an estimated (notional) tax liability of less than $500
- reports instalment income of less than $4,000 in its tax return
- has a tax debt of less than $1,000 (after adjustments for PAYG instalments and voluntary payments) in its tax assessment, or
- has a calculated PAYG instalment rate of 0.0%.
Companies and super funds
We will automatically remove a company or super fund from PAYG instalments if all of the following apply:
- it has a calculated PAYG instalment rate of zero or an estimated (notional) tax liability of less than $500
- it has instalment income (excluding capital gains) in its most recent income tax assessment of less than $2 million
- it is not the head company of a consolidated group.
You can exit PAYG instalments if you are no longer earning business or investment income.
You can't exit PAYG instalments if you have:
- become bankrupt and are in a debt agreement (under Part IX of the Bankruptcy Act 1966) or personal insolvency agreement (under Part X of the Act)
- a tax debt of less than $500 that would have been more than $500 after including PAYG instalments for the year
- received a refund that would have been a debt of more than $500 after including PAYG instalments for the year.
Individuals, including sole traders
You can make a request to exit PAYG instalments using your myGov account linked to the ATO's Online services.Sign in to myGov (individuals and sole traders)
Select Tax > Manage > Manage PAYG instalments. This option will only be available when you become eligible to exit PAYG instalments.
Individuals and all businesses
You can ask to exit through your registered tax or BAS agent, or by phone:
- 13 28 66 for businesses
- 13 28 61 for individuals not in business.
If you lodge a tax return with income or tax above the entry thresholds, we will contact you about re-entering PAYG instalments.
You can re-enter PAYG instalments voluntarily if your circumstances change or you want to plan ahead for your income tax.If you are no longer earning business or investment income, you may be able to exit PAYG instalments.