If I pay an amount worked out by the Tax Office as a PAYG instalment, will I still have to lodge a tax return?
Yes. PAYG instalments is a system for paying instalments of your expected tax liability on investment and business income in a financial year – your actual tax liability is worked out when your annual income tax return is assessed. Your PAYG instalments are credited against your income tax assessment. When you lodge your annual tax return you may have to pay a wash up payment or receive a refund. If my circumstances change so that I expect to pay less (or more) tax this year, can I vary the amount that the Tax Office has worked out as my quarterly PAYG instalment amount or annual instalment amount? Yes. For information on variations see the booklet Varying your PAYG instalments – Individuals (NAT 4159).
