Blog

Money Doesn’t Come Without Guidance ...

EXPLAIN THE PAYG INSTALMENTS FOR PRIMARY PRODUCERS AND SPECIAL PROFESSIONALS

Awesome Image
24
May

PAYG (Pay as you go) is an instalment paying system on your expected tax liability of your business & investment income during the income year. Your PAYG instalments are credited yearly to determine whether you owe more tax or are owed a refund against your assessment. Three payment schedules are available for your PAYG instalment amounts based on your circumstances, these are-

  •  Quarterly: The instalments are generally paid quarterly. In this case, you need to work out your PAYG instalments based on your instalment rate multiplied by your instalment income.

          Instalment Income ($) X Instalment Rate (%) = Instalment Amount ($)

          The due date for the first quarter is on or before 28 October and the other three quarters are 28  January, 28 April & 28 July.

  •  Two Instalments Option: Some primary producers and special professionals can pay two instalments a year and some have an annual instalment option. If you want to pay in two instalments, then you have to pay 75% of your annual PAYG liability by 28 April and the remainder by 28 July.
  •  Annual Instalment: The annual instalment is a single, lump sum payment of your PAYG liability for the year. Your PAYG letter will tell you if you may be eligible to pay annually. If so, it will advise you how you can elect to pay annually. If you are eligible to pay PAYG instalment at annual basis, then you have to inform this to Tax Office by 21 October.

Most of the Australian taxpayers balance their accounts based on a balancing date of 30 June and they can change their amount if they believe that they are paying more (or less) than their expected tax liability.


Comments 0

    Currently, there are no comment.

Login to comment

Latest Posts

Popular Post

We provide the fastest, easiest and most effective online tax return solution

trustedsite