Pay the instalment amounts worked out by us
You can choose this option in the first quarter of the income year - for most taxpayers, this is the activity statement or instalment notice due in October. If you choose this option for:
- PAYG, you need to pay the amount shown at label T7 on your activity statement or instalment notice
- GST, you need to pay the amount at label G21 on your activity statement or instalment notice.
If you choose to pay the PAYG or GST instalments calculated by us, your actual income tax and GST liabilities will be worked out when your income tax return or your annual GST return is processed. Any overpayments will be refunded to you, provided you have no other tax debts.
Vary your instalment amounts
You can vary PAYG or GST instalment amounts if you believe the amounts calculated by us (which include the GDP adjustment) will mean you will pay more or less than your actual tax liability for the income year.
You may be liable to pay the general interest charge if you vary your instalment down and end up paying less than 85% of the actual tax that you should have paid on your business and investment income (for PAYG) or GST net amount.
Work out your PAYG instalment or GST net amount
You can choose to work out your PAYG instalment or GST net amount yourself for:
- PAYG instalments, use PAYG option 2 (income x rate) on your activity statement
- GST, use GST option 1 or 2 on your activity statement to work out your actual GST net amount.
These options are generally only available in your first quarter.
If you have received an instalment notice in quarter one and you want to go back to working out your PAYG instalment or GST net amount each quarter, you will need to tell us that you want to revoke your election to pay instalment amounts. We will then send you an activity statement to complete and lodge. This needs to be done by 28 October.
You can revoke your election by phoning us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.