Taxation Administration Act 1953
Note: See section 3AA .Chapter 2 - Collection, recovery and administration of income tax
Parts 2-5 and 2-10 establish the PAYG system, which has 2 components:
Under PAYG withholding, amounts are collected in respect of particular kinds of payments or transactions. Usually, someone who makes a payment to you is required to withhold an amount from the payment, and then to pay the amount to the Commissioner.
For a list of the payments and other transactions to which PAYG withholding applies, see Division 10 .PAYG instalments 6-5(3)
You pay PAYG instalments directly to the Commissioner. These are usually based on your GDP-adjusted notional tax or your ordinary income for a past period, but excluding:
An instalment is usually paid after a quarter, but some taxpayers are eligible to pay an annual instalment after the end of the income year.