# ATO: PAYG instalments for the 2020-21 income year



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office's Small Business Newsroom:

https://www.ato.gov.au/Newsroom/sma...PAYG-instalments-for-the-2020-21-income-year/
*PAYG instalments for the 2020-21 income year*








*24 June 2020*
Pay as you go (PAYG) instalments allow you to make regular payments towards your expected end of year income tax liability. Every year we adjust PAYG instalment amounts using a formula known as the gross domestic product (GDP) adjustment.
For the 2020-21 income year, there is no GDP adjustment to PAYG instalments. This was recently legislated in response to COVID-19.
PAYG instalment variations made in 2019-20 won't carry over into the new income year. If you think you will pay too much (or too little) tax for the 2020-21 year, you will need to vary your instalments again.
Calculating and paying the right PAYG instalment amounts will help you manage a healthy cash flow.
Our approach for penalties and interest charges made to variations due to COVID-19 are being reviewed.
Remember, registered tax agents and BAS agents can help you with your tax.
*Next steps:*

It's quick and easy to lodge your variation, you can do this through:
myGovExternal Link
the Business PortalExternal Link
your registered tax agent

*Find out about:*
PAYG instalments
Varying the amount you pay

*See also:*
Our PAYG instalment calculator to help you work out the amount.


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## Jack Malarkey (Jan 11, 2016)

Jobkeeper payments income of a business participant is treated as part of the proceeds of the business.

This will mean that over the next two income years more drivers will find themselves in the PAYG system paying quarterly instalments of income tax to be credited against the end-of-year liability.

Jobkeeper payments will also result in increases in the quarterly PAYG payments as the jobkeeper amounts are relatively high and have no or minimal expenses linked to them.


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