# ATO advice on PAYG instalment variations



## Jack Malarkey (Jan 11, 2016)

Australian Taxation Office advice from their Small Business Newsroom:


*PAYG instalment variations: what you need to know*









Pay as you go (PAYG) instalments is a system for making regular payments towards your expected end of year income tax liability. We will automatically enter you into the system if you earn over a certain amount of business and/or investment income.

We work out your instalment amount or rate using information you reported on your last income tax return.

If your amount or rate doesn't reflect your current financial circumstances, you or your agent can vary it so you don't pay too much (or too little) income tax for the year.

You can vary your PAYG instalments on your current activity statement or as a revision to a lodged activity statement. You need to do this by the date your instalment is due and before you lodge your income tax return for the year.

Once you've lodged a variation, your new PAYG instalment rate or amount will be applied to all your activity statements for the rest of the financial year.

It's quick and easy to lodge your variation. You can do this through:

myGov
the Business Portal
with your registered tax agent
Calculating and paying the right PAYG instalment amount will help you manage a healthy cash flow.

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

*Next steps:*

Use our PAYG instalment calculator to help you work out the new rate or amount
Lodge your variation by logging in to myGovExternal Link or Business PortalExternal Link
*Find out about:*

How to vary the amount you pay


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