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  • Varying the amount you pay

    Whichever option you use to calculate your pay as you go (PAYG) instalments, you can vary the amount you pay if you believe you might end up paying too much (or too little tax) for the year.

    To do this, you need to be able to estimate the tax on your business and/or investment income. You can use the PAYG instalment calculator to help you work out your instalments and your variation.

    If you vary your instalments, it's important that you don't underestimate the amount or rate. Your instalments will be compared to your tax payable for the year. If your varied instalments are less than 85% of your total tax payable for that year, you may be subject to general interest charge on the difference.

    How to vary your PAYG instalments

    You can vary your PAYG instalments on your current activity statement or by revising a lodged activity statement. You need to do this by due date of your instalment and before you lodge your income tax return for the year.

    Once you've lodged a variation, your new PAYG instalment rate or amount will be applied to all your activity statements for the rest of the income year or until you make another variation.

    You can vary your PAYG instalments online:

    You don’t have to vary your instalments. If the amount or rate we calculate results in you paying too much tax, you'll receive a refund of any overpayment after we process your tax return. If the amount or rate we calculate is insufficient to meet your tax liability for the year, simply pay the balance owing when your tax return is processed.

    Next steps:

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    Last modified: 15 Feb 2019QC 45462