Here are some of our most frequently asked questions.
Pay As You Go (PAYG) instalments are, unfortunately, something we have little control over. They are automatically triggered when an individual meets a certain set of criteria within the ATO’s system.
When an individual had a tax payable result the previous year, the ATO uses that information to calculate the approximate tax liability for the following year. If their projected liability is deemed large enough, the amount is divided into instalments to be paid off over the year.
The actual tax liability is worked out at the end of the income year when the accountant prepares the tax return. PAYG instalments that have been paid are credited against the tax assessment to determine if the individual owes more tax or is owed a refund of some of the paid instalments.
The easiest way to manage your PAYG instalments is by using the ATO’s online services. You can view, lodge, pay, vary and manage all your PAYG instalment obligations in one place. All you need is a myGov account linked to the ATO. If you don’t have a myGov account linked to the ATO, you can create one at ato.gov.au/onlineservices
Can’t find the answer you are looking for? Feel free to contact our office.