As a small business, you can pay your pay as you go (PAYG) instalments using an amount the ATO calculates for you. It’s quick and easy because you don’t have to work out your instalments yourself.

PAYG Instalments Concession

The ATO calculates your instalment amounts by:

  • using information from your most recent tax return
  • adjusting them for any likely growth in your business and investment income.

If you are not a small business because your turnover is $10 million or more – but is less than $50 million – you can pay your PAYG instalments using an amount we calculate for you from 1 July 2021.

Pay using the instalment amount

To start paying using the instalment amount, simply complete the details under Option 1 on your first activity statement or instalment notice for the income year. You’ll then pay using an instalment amount for the rest of the year.

If you want to change to a different payment option later, you will need to wait until the first quarter of the next income year.

If your aggregated turnover is more than $10 million but less than $50 million, you will need to call the ATO on 13 28 66 before 28 October 2021 to request to pay by the instalment amount method.

For more information please contact your Client Relationship Manager.

Source: ATO