Professional Documents
Culture Documents
PAYG instalments
– how to complete
your activity statement
NAT 7393-11.2012
Our commitment to you
We are committed to providing you with accurate, consistent MORE INFORMATION
and clear information to help you understand your rights and
entitlements and meet your obligations. For a copy of any of the publications referred to in
these instructions, or for more information about PAYG
If you follow our information in this publication and it turns out instalments or completing your activity statement:
to be incorrect, or it is misleading and you make a mistake as n visit our website at www.ato.gov.au
a result, we must still apply the law correctly. If that means you n phone 13 28 66.
owe us money, we must ask you to pay it but we will not charge
you a penalty. Also, if you acted reasonably and in good faith we Other activity statement instructions:
will not charge you interest. n PAYG withholding – how to complete your activity
If you make an honest mistake in trying to follow our information statement (NAT 7394)
in this publication and you owe us money as a result, we will n Wine equalisation tax – how to complete your activity
not charge you a penalty. However, we will ask you to pay statement (NAT 7390)
the money, and we may also charge you interest. If correcting n Luxury car tax – how to complete your activity statement
the mistake means we owe you money, we will pay it to you. (NAT 7391)
We will also pay you any interest you are entitled to. n Guide to activity statements.
If you feel that this publication does not fully cover your If you do not speak English well and need help from
circumstances, or you are unsure how it applies to you, the ATO, phone the Translating and Interpreting Service
you can seek further assistance from us. on 13 14 50.
We regularly revise our publications to take account of any If you are deaf, or have a hearing or speech impairment,
changes to the law, so make sure that you have the latest phone the ATO through the National Relay Service (NRS)
information. If you are unsure, you can check for more recent on the numbers listed below:
information on our website at www.ato.gov.au or contact us. n TTY users, phone 13 36 77 and ask for the ATO
This publication was current at November 2012. number you need
n Speak and Listen (speech-to-speech relay) users,
phone 1300 555 727 and ask for the ATO number
you need
n internet relay users, connect to the NRS on
www.relayservice.com.au and ask for the ATO
number you need.
If you would like further information about the NRS, phone
1800 555 660 or email helpdesk@relayservice.com.au
Activity statement instructions are available from www.ato.gov.au or can be ordered by phoning 13 28 66. The ATO is authorised by the tax laws to collect this information to
This is where you sign administer those laws and may pass information to other government agencies. More information about privacy and access to your tax information is available from www.ato.gov.au
NAT 4192-06.2011 [JS 20301] that you use when making
and date your activity ATO code 0000 0156 03 a payment.
PAYMENT ADVICE - 59
statement.
Michael Jones ABN 97 999 999 999
Amount paid
Methods of payment
BPAY®: contact your financial institution to make Direct debit: have your payment deducted from your financial
this payment from your cheque or savings account. institution account (not credit cards). Phone 1800 802 308 to
Quote biller code 75556 and your EFT code (shown organise a direct debit or to get further information.
on the front of the payment slip) as the customer Mail payments: mail the payment slip together with your cheque or
reference number. money order using the envelope provided. Please do not use pins or
Credit card: payments can be made online or by phone, a staples. Do not send cash. See below for cheque information.
card payment fee applies. Go to www.ato.gov.au/howtopay Post office: payments can be made at any post office by cash,
or phone 1300 898 089. cheque or EFTPOS (where available and subject to daily limits). A
Direct credit: you can electronically transfer funds to the $3,000 limit applies to cash payments. Your payment slip must be
ATO’s direct credit bank account using online banking facilities. presented with your payment.
Use BSB 093 003, Account number 316 385 and your
EFT code. Phone 1800 815 886 for assistance if required. Cheques/money orders should be for amounts in Australian dollars
and payable to ‘Deputy Commissioner of Taxation’. Cheques should
be crossed ‘Not Negotiable’. Payments cannot be made in person
at any ATO site or shopfront.
Generally, if you have business or investment income, you will Varying your instalment amount
pay PAYG instalments quarterly or annually. If you think that using the pre-printed amount at T7 will result in
you paying more (or less) than your expected tax liability for the
You must choose your reporting option by the due date of your
year, you can vary it.
first activity statement for the income year. You cannot change
that option until the first quarter of the next income year.
If you have already chosen an option, there will be a pre-printed You may be liable to pay the general interest charge if
X in the box next to that option. you vary your PAYG instalment amount down, and end up
paying less than 85% of the actual tax that you should have
If you have not made a valid choice by the due date, the default paid on your business and investment income.
option will apply. If you paid PAYG instalments last year, you will
default to the same option you used last year (assuming you are
still eligible for it). If this is the first year that you are paying PAYG Primary producers and special professionals (such as
instalments, you will default to option 1 (paying an instalment sports professionals and authors)
amount) if you are eligible for it. Eligible primary producers and special professionals who
choose option 1 pay only two instalments instead of four. Under
Report and pay a PAYG instalment annually this arrangement you generally pay 75% of your annual PAYG
If you choose to pay an annual PAYG instalment, your choice instalment liability with your activity statement for quarter three
remains in place indefinitely unless your circumstances change (January to March) and the remainder with your quarter four
or you tell us that you no longer wish to pay annually. activity statement (April to June).
For more information on annual reporting, refer to For more information, refer to PAYG instalments for
Paying your annual PAYG instalment (NAT 9411) or contact primary producers and special professionals (NAT 4352).
us on 13 28 66.
T3
Don’t include at T1: New varied rate
n Capital gains If you want to vary your instalment rate, write your new rate at T3.
n GST, wine equalisation tax or luxury car tax you collected
n input tax credits
n any income (such as salary, wages or income subject to
For more information, refer to How to vary pay as you
a PAYG voluntary agreement) where amounts have been go (PAYG) instalments (NAT 4159).
withheld or should have been withheld (other than income
that an amount has been withheld from because you did not
provide your tax file number or Australian business number)
T4
Reason code for variation Example
If you vary your instalment rate, choose a reason from the list
below that best describes why and write the appropriate code In the first quarter of the income year, you are offered a
at T4. choice of options. You decide to use option 2 and you place
an X in the option 2 box.
Reason Code Your income for the quarter is:
n total sales of $22,000 (including $2,000 GST), and
Change in investments 21
n interest and dividends received of $100.
Current business structure not continuing 22
Your instalment income is $20,100 (that is $22,000 less
Significant change in trading conditions 23 $2,000 GST plus $100 other income). Write the figure
20,100 at T1.
Internal business restructure 24
Our calculated instalment rate pre-printed on your activity
Change in legislation or product mix 25 statement at T2 is 1.7%.
Financial market changes 26 You calculate the instalment amount to pay as follows:
Use of income tax losses 27 T1 × T2 = $20,100 × 1.7% = $341.70
Consolidations 33 Write the figure 341 at T11. Copy the figure 341 to 5A.
T11
T1 × T2 (or T1 × T3)
Multiply the amount at T1 by either:
n the instalment rate pre-printed at T2, or
n if you vary the rate, your new varied rate that you wrote at T3.
3 4 1
Write the result at T11.
3 4 1
5A
PAYG income tax instalment
Copy the amount at T11 to 5A on your activity statement. This
is the amount of your PAYG instalment for the quarter.
You can write ‘0’ at 5A instead of your instalment amount if:
n your instalment amount for the period covered by the activity
statement is $50 or less
n you are not claiming a credit at 5B, and
n PAYG instalments is your only obligation.
Use the following table to calculate the amount of credit you can
claim at 5B.
If the instalment you are varying is your first for the income year, 7 If the result is a positive amount, this $50
you can’t claim a credit. is the amount of credit that may be
claimed at 5B
Example
We notify you that your instalment rate will be 10% for the
first quarter. You multiply this rate by your instalment income
of $1,000, resulting in an instalment payment of $100.
For the second quarter you choose to vary the instalment
rate to 5%. You multiply your current instalment income
of $1,000 by the varied rate, resulting in an instalment
payment of $50.
You then decide to claim a credit to put you in the position
that you would have been in if your instalment rate had
always been 5%.
Direct Credit
For more information on electronic lodgment, visit: Transfer your payment to us online from your cheque or
n www.ato.gov.au/onlineservices or phone us on savings account. You can transfer funds directly to the
13 28 66 for business tax enquiries or 13 28 61 ATO using internet banking or a computer based banking
for personal tax enquiries software package.
n www.ato.gov.au/sbr the SBR website.
Direct debit
Have your payment automatically deducted from your cheque
or savings account. You will need to complete a direct debit
By mail request to have your payment electronically deducted from your
Mail your original, completed activity statement with your nominated bank account.
cheque using the pre-addressed envelope provided.
If you misplace the envelope, you can send your activity Mail
statement to: Mail your payment slip together with a cheque or money
VIC, TAS, WA, SA, NT NSW, QLD, ACT order to us.
Australian Taxation Office Australian Taxation Office You can send a cheque using the pre-addressed envelope
Locked Bag 1936 Locked Bag 1793 provided. Be sure to include the original payment advice slip
Albury NSW 1936 Penrith NSW 1793 if you have lodged your activity statement electronically.
Make cheques payable to the ‘Deputy Commissioner of
Taxation’ and cross them ‘Not negotiable’. Don’t attach your
It’s important that you send your original activity
cheque with pins or staples and don’t send cash.
statement, not a copy or a version generated from a
commercial software package. If you do use a commercial
package, make sure you copy the information onto your
original statement.