How do I vary my instalment if I am a two-instalment payer for PAYG?
You vary your PAYG instalment by first estimating your tax that you will pay on your business and investment income for that year of income. If you vary your instalment amount before the first instalment is due on 28 April, 75% of your estimated tax is your first instalment and 25% of your estimated tax is your second instalment. You write your estimated tax at label T8 and the varied amount at T9. Your reason code for varying the instalment should be written at T4. It is important to remember that there is a penalty if the estimated benchmark tax is less than 85% of the actual benchmark tax calculated by the Tax Office upon lodgment of the income tax return. For example: Sven Johannson is a farmer who has received a PAYG instalment amount for March 2002 of $15,000 ($20,000 GDP-adjusted notional tax). He estimates that his tax on business and investment income for the 2001–02 financial year will be $12,000 and so decides to vary his instalment amount for the third quarter. His instalme
