This document provides an overview of the Pay As You Go (PAYG) installment compliance requirements, detailing when individuals are liable to make payments based on gross business and investment income. It outlines specific conditions for liability, payment schedules, and the implications of self-calculating installments versus using ATO calculations. Additionally, it addresses the filing procedures for business partnerships and considerations for non-residents.

1. A brief on Pay As You Go (PAYG)
Installments

2.  This Presentation is aimed at explaining
basic compliance requirement for PAYG
rule.
 It explains when you are liable to PAYG
and its calculation.

3.  You have reported $2,000 or more of gross business and
investment income on your previous tax return ( It also
excludes the income on which tax has been witheld as well as
capital gains earned)
 Tax payable on your last assessed tax return is more than
$500 (disregarding any voluntary payments or PAYG
installment credits that were applied)
 Tax payable is more than $250 in current year
 You are not entitled to the Seniors and pensioners tax
offset.
 In case of Non residents it is payable whenever income
accrues to an Assesses.

5.  The most recent notional tax was less than 8000$
 Business is registered for GST and it is payable annually
 if you are a partner in a partnership registered for the
GST and the partnership reports and pays GST annually.

6.  ATO will send Quarterly activity statement which
needs to paid quarterly
 The payment schedule would be as under:
Quarter Instalment due by
July - September 28 October
October - December 28 February
January - March 28 April
April - June 28 July

7.  An individual can opt to pay installments as per the
calculation done by individual himself however You may
have to pay interest if your installment amount or rate is
based on an estimate that is less than 85% of the actual
tax payable on your investment and business income.
 However if the PAYG installments are as per the
calculation of ATO there would be no need of penalty.