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Pay as you go instalments for business and investment income

Last updated 23 October 2022

Start PAYG instalments

Pay as you go (PAYG) instalments are regular prepayments of the tax on your business and investment income. Paying tax throughout the year will help you avoid a large tax bill when you lodge your tax return. Most instalments are paid quarterly.

If you're new to business, or think you will make a profit from your business or investment income, it's a good idea to enter PAYG instalments voluntarily. This way you can get on top of your finances early.

If you choose not to enter voluntarily, you may be entered automatically. This happens when you lodge a tax return with instalment income above the entry threshold.

See Starting PAYG instalments (in English).

Calculate PAYG instalments

You can use our PAYG instalment calculator to decide whether you should enter voluntarily and how much you will need to pay in instalments over the financial year.

The calculator will ask you to estimate your annual income and your tax deductions related to this income.

Your instalment amount is based on your estimates. Your actual tax payable will be determined when you lodge your tax return.

See PAYG instalments calculator (in English).

Vary or stop your PAYG instalments

You can vary your instalments if you think you are paying too much or too little tax for the year. If you have overpaid, you will receive a refund when you lodge your tax return. See How to vary your PAYG instalments (in English).

If you are no longer earning business or investment income you can request to exit PAYG instalments. Make your request in your myGov account linked to ATO online services. See Stopping PAYG instalments (in English).