# ATO: Varying PAYG instalments: what you need to know



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:









Varying PAYG instalments: what you need to know


Do you need to vary your PAYG instalments?




www.ato.gov.au





*Varying PAYG instalments: what you need to know*










*9 March 2022*

Pay as you go (PAYG) instalments allow you to make regular prepayments throughout the year towards the expected tax on your business and investment income. By paying regular instalments throughout the year, you should not have a large tax bill when you lodge your tax return.

You can vary your PAYG instalments if you think your current payments will result in you paying too much or too little tax for the income year. You must make variations on or before the payment due date.

Your varied amount will apply for all your remaining instalments unless you make another variation before the end of the income year.

Provided you take reasonable care to estimate your end of year liability, we will not apply penalties or charge interest to excessive variations in the 2021-22 income year.

We recognise that many businesses in local government areas in Queensland and New South Wales have been affected by the floods. We are here to support the community's recovery efforts during this difficult time by providing administrative support to help taxpayers.

If your business activity statement or instalment notice has an original due date of 28 February 2022 or 21 March 2022, you don't need to lodge relevant returns until 28 March 2022. You don't need to request a lodgment deferral if you lodge by 28 March 2022.

We encourage you to review your tax position regularly and vary your PAYG instalments if your situation changes.

Calculating and paying the right PAYG instalment amounts will help you manage a healthy cash flow.

Remember, registered tax agents can help you with tax advice.

*Next steps*

Use our PAYG instalment calculator to help you work out your new instalment amount.
Lodge your variation. You can do this through myGovExternal Link, Online services for business or your registered tax or BAS agent.
*See also*

PAYG instalments
Varying your PAYG instalments due to COVID-19
Flood support


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