Why have I received an instalment rate when my business is no longer trading?
Your instalment rate is based on your most recently assessed income tax return. Generally, if you are an individual and your last income tax return showed $2,000 or more of income from business or investments and you had a tax debt of $500 or more (disregarding any voluntary payments or PAYG instalment credits that were applied), you will be given an instalment rate. Most companies and superannuation funds must pay instalments, unless they have lodged a final return. If you are using the option 1 instalment amount and your business is no longer trading, you may wish to vary your instalments to reflect the tax you expect to pay on your business and investment income for the year. You can vary to zero if you think you will have no business or investment income this year. If you are using the instalment income x rate (option 2) to work out your instalments and your business is no longer trading, your instalment income for the period is likely to be zero. As a result, your instalment will
Your instalment rate is based on your most recent assessment for your last income tax return that has been lodged. For most individuals, if your last income tax return shows $1,000 or more of income from business or investments you will be given an instalment rate. If you are a company, regardless of the amount of assessable income, unless you have lodged a final return, you should expect to get an instalment rate. If you receive an ‘ATO instalment rate’, you still need to lodge an activity statement. Your ‘ATO instalment rate’ will be withdrawn following lodgment of the final income tax return for your business.
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