Pay As You Go (PAYG) Instalments are Income Tax Instalments paid by Individuals and Companies to the Australian Taxation Office (ATO) on a regular basis. Below we will discuss the following: What are PAYG Instalments Why me? Payment frequency How to vary the instalment amount How do I pay PAYG Instalments What are PAYG Instalments? PAYG Instalments are a pre-payment towards your financial year income tax, similar to how PAYG Withholding tax is withheld from employees wages. When you lodge your Income Taxation Return, your PAYG Instalments will show as a credit towards Income Tax Payable. If you have paid more PAYG Instalments than you are required to, you will receive a Tax Refund. PAYG Instalments are not an additional tax. Why me? Company: If your notional tax is $500 or more in the previous financial year, and you have utilised all your income tax losses carried forward. Individual: You have reported $4,000 or more of income on your last Taxation Return which has not been subject to withholding tax. Examples of this is business income as a sole trader, and investment income, including distributions from a related Family Trust. Payment Frequency PAYG Instalments are generally paid quarterly, however the … Continue reading PAYG Instalments – what and why!