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PAYG instalments: special rules for primary producers

How averaging provisions, farm management deposits and forced disposals of livestock affect PAYG instalments.

Last updated 24 July 2019

Averaging provisions

Tax averaging provisions even out your income and tax payable (over a maximum of 5 years) to allow for good and bad years. This ensures you don't pay more tax over time than taxpayers on comparable, stable incomes.

PAYG instalments don't affect your entitlement to income averaging. The instalment rate or amount we work out for you will take your averaging provisions into account.

Farm management deposits scheme

The farm management deposits scheme helps you to deal with uneven income flows. You can make tax-deductible deposits during successful years, which can be redrawn during less successful years.

If you make a farm management deposit, your instalment income for that period is reduced. The amount must be included in your instalment income in the years when you withdraw a farm management deposit.

Forced disposal of livestock

If you are forced to dispose of livestock, you can choose to spread any profit earned from the disposal over a period of 5 years.

Alternatively you can choose to defer the profit and use it to reduce the cost of replacement livestock in the disposal year or the next 5 income years.

Payment options

As a primary producer, a range of PAYG instalment payment options are available so that when and how much you pay aligns with changes in your income.

We'll let you know which options are available to you. You may be able to pay quarterly, twice a year or annually.