Tax Facts - PAYG Instalments

Pay As You Go (PAYG) instalments are paid on each business activity statement (BAS) or income activity statement (IAS) based on a previous income tax assessment. The instalment can often be a commissioner stated instalment or a commissioners rate of instalment. These instalments are a provisional tax payment against a future tax liability and are offset to your tax liability when your income tax return is completed. The same holds for individuals, companies and any other taxable entity.

PAYG instalments are generally paid quarterly, but they can be paid annually. The annual instalment is a single, lump sum payment of your PAYG liability for the year. For more information see the PAYG Annual Instalment Fact Sheet. If your company  is not eligible to pay an annual instalment, it can pay PAYG instalments quarterly.  The due date for lodging the activity statement and paying any amounts due will be printed on your company's activity statement and is subject to whether you lodge yourself or through a tax agent. This is also the case if you choose the two instalment option, however this only applies for some primary and special professionals (such as sports professionals and authors). For more information see PAYG Instalments Guide for Primary and Special Professionals.

For further information see the PAYG Instalments section of the ATO website.