PAYG instalments are reassessed after you lodge your tax return. If you have higher or lower business and investment income in your latest tax return, your instalment amount or rate may change.
If you think you will earn business and investment income over the threshold, it's a good idea to voluntarily enter PAYG instalments.
If you pay PAYG instalments using the amount method, your instalments have increased by the gross domestic product (GDP) adjustment factor. For the 2023-2024 financial year, the rate is 6%.
The Australian Taxation Office (ATO) encourage you to review your tax position regularly and vary your PAYG instalments if needed, to reflect your expected tax for the year and to avoid penalties.
WHICH PAYG INSTALMENT METHOD BEST SUITS YOUR NEEDS?
PAYG instalments are calculated using either the instalment amount or instalment rate method. If you're eligible to choose between these options, they'll both be shown on your business activity statement (BAS) or instalment notice.
For examples on how to manage PAYG instalments for investment income, refer to the fact sheet on Pay as you go (PAYG) instalments on the ATO website.