PAYG income tax instalment

Some clients will require PAYG Instalment payments to be made as part of lodging /paying the BAS.

This typically arises after the annual tax return is lodged and the ATO deems that a business should be paying something towards the estimated end of year tax payable.

When the subsequent BAS is generated, the ATO will provide a fixed amount payable or a rate to be calculated against the income.

We typically only find this out when we’re going to lodge the next BAS for client.  The ATO will calculate an amount payable as either a fixed amount per quarter or as a % of the income for the quarter.  If we note this when processing a BAS for you, we will send an email to advise you.  

We find that most clients prefer to pay using the fixed amount method and will included this in the BAS calculations by default when we send you the Activity statement for e-signing.  If you wish us to use the % of income method instead please advise and we will send you a revised Activity Statement to sign off on.

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