# ATO: Varying PAYG instalments



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s tax professionals newsletter:


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Tax professionals newsletter​










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Issue No. 39​13 October 2021​






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News highlights this week*Varying your PAYG instalments due to COVID-19*

If your clients continue to be affected by COVID-19, we will not apply penalties or charge interest on varied pay as you go (PAYG) instalments that relate to the 2021–22 income year


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## Jack Malarkey (Jan 11, 2016)

Varying PAYG instalments will commend itself to many rideshare drivers and particularly so if they received assessable jobkeeper payments in 2020-21 but tax-free state government grants or tax-free federal government disaster payments in 2021-22.

This statement about the Tax Office not imposing penalties or interest will reassure many who are considering varying their PAYG instalments.

For more information about varying PAYG instalments due to COVID-19, see:






Page not found | Australian Taxation Office







www.ato.gov.au





Note that PAYG instalments affect the timing of the payment of income tax rather than substantive tax liabilities as a full credit is given for PAYG instalments paid during the income year. (No interest is paid to you, however, if you end up paying too much by way of PAYG instalments.)


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## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office’s small business newsroom:









Varying your PAYG instalments due to COVID-19


Businesses can tailor their instalments to endure challenging times.




www.ato.gov.au






*Varying your PAYG instalments due to COVID-19*










*11 October 2021*

With pay as you go (PAYG) instalments, you make regular tax payments throughout the year. This helps you avoid a large tax bill when you lodge your tax return.

You can vary your PAYG instalments if you think you will pay too much compared with your estimated tax for the year.

We recognise that many businesses continue to be affected by COVID-19. We will not apply penalties or interest for any excessive variations for the 2021-22 income year.

This applies when you have taken reasonable care to estimate your end of year tax. When considering if a genuine attempt has been made, we take into account what a reasonable person would have done in your circumstances.

Variations do not carry over into the new income year. If you made variations in the 2020–21 income year, you may need to vary again in 2021–22.

You can vary your instalments multiple times throughout the year. Your varied amount or rate will apply for all your remaining instalments for the income year, or until you make another variation.

If you realise you have made a mistake working out your PAYG instalment, you can correct it by lodging a revised activity statement or varying a subsequent instalment.

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

*Next steps:*

PAYG instalments calculator
myGovExternal Link
Online services for business
Lodge with a registered tax agent
*Find out about:*

Varying your PAYG instalments due to COVID-19
PAYG instalments
Additional support during COVID-19


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