What is the Pay As You Go Instalment (PAYGI) system?
The pay as you go (PAYG) instalment system is used for paying instalments during the income year towards your expected income tax liability on your business and investment income. Your actual tax liability is worked out at the end of the income year when your annual income tax return is assessed. Your PAYG instalments for the year are credited against your assessment to determine whether you owe more tax or are owed a refund. The Tax Office writes to tell you if you have to pay PAYG instalments. Your PAYG letter tells you the assessment year used in calculations, your PAYG instalment rate, your tax on business and investment income, your instalment amounts calculated by the Tax Office and how often you pay.
