• Complete activity statement - pay as you go (PAYG) instalment - amount variation entry

    This screen is displayed if you selected option 1 to pay a PAYG instalment amount (the reporting method). 

    The ATO has calculated your PAYG instalment amount. The instalment amount is based on the information provided on your last assessed income tax return or varied by you in a previous quarter.

    How to vary your instalment amount

    You can vary your instalments if you think that using the amount the ATO has provided means you will pay more (or less) than your expected tax for the income year.

    To vary the amount:
    • enter your new annual estimate
    • choose a reason for variation at T4, and
    • select the Next button.

    If you are a quarterly instalment payer, you must use the varied amount for the remaining quarterly instalments in the income year, unless you again choose to vary.

    Round this value down to the nearest whole dollar amount. So instead of entering $124.75 you would enter $124 only.

    Why vary your instalment amount

    You may want to vary the instalment amount advised by us because of significant changes in your income or tax situation, such as:

    • reducing or expanding a share portfolio (or receiving significantly lower or higher dividends from a share portfolio)
    • using savings or investments for private purposes, reducing the amount of income you receive
    • selling or buying an investment property (or receiving more or less rent from a property)
    • ceasing to earn income from business activities
    • having much higher or lower expected tax deductions for about the same level of investment and business income, or
    • having less, or more, investment and business income but about the same level of expected tax deductions – for example, because your running costs are about the same, or having repaid all you owe under the higher education loan program (HELP) or student financial supplement scheme (SFSS).

    Variations to the instalment amount must be completed by the lodgment due date.

    PAYG credit claim

    You may be eligible for a PAYG credit if you varied your PAYG instalment rate down from a previous quarter in the same financial year. If you are entitled to claim a credit, the Complete activity statement – pay as you go (PAYG) instalment credit claim screen will automatically be displayed.

    Screen fields

    The fields will vary depending on whether you have received a quarterly instalment or an annual instalment.

    Quarterly instalment

    The following fields are displayed if you are varying a quarterly instalment amount:

    T7 ATO instalment amount

    This field is pre-populated with your quarterly PAYG income tax instalment worked out by the ATO.

    T8 Estimated tax for the year

    Only complete this field if you are varying your instalment amount for the quarter.

    You can vary your instalment amount if you think that using the amount at T7 will result in you paying more (or less) than your expected tax for the income year.

     You may be liable to a penalty if you vary and underestimate your tax by more than 15%.

    Enter your estimate of the tax on your business and investment income for the year. After you have completed this screen, the ATO will use your estimate for the year to calculate your quarterly instalment for you. 

    If you complete this field you must also complete T4.

    T4 Reason for variation

    Select the reason for variation from the list provided. Only complete this field if you are varying your instalment amount.

    Annual instalment

    The following fields are displayed if you are varying an annual instalment amount:

    T5 Tax Office supplied instalment amount

    This field displays your annual PAYG income tax instalment worked out by the ATO.

    T6 Varied instalment amount

    Only complete this field if you are varying your instalment amount. You can vary your instalment amount if you think that using the amount at T5 will result in you paying more (or less) than your expected tax for the income year.

     You may be liable to a penalty if you vary and underestimate your tax by more than 15%.

     Enter your estimate of the tax on your business and investment income for the year.

    If you complete this field you must also complete T4.

    T4 Reason for variation

    Select the reason for variation from the list provided. Only complete this field if you are varying your instalment amount.

    Available buttons

    Go to list

    Returns you to the Activity statement list screen. If you choose this option all of the data you have entered will be lost, unless you have saved this activity statement to your computer.

    Save

    Saves a draft version of this activity statement to your computer. The Complete activity statement – save activity statement screen will be displayed.

    Start again

    Removes any of the details you have entered for this activity statement. The Complete activity statement – activity statement start again screen will be displayed.

    View activity statement

    Shows the activity statement you are working on. The details displayed will include your obligations and the values that you have entered.

    Discard variation

    Discards the variation details you have entered.

    If you discard the variation and you are a quarterly payer you will be returned to the Complete activity statement – pay as you go (PAYG) instalment option 1 - pay a PAYG instalment amount quarterly screen.

    If you discard this variation and you are an annual payer you will be returned to the Complete activity statement – pay as you go (PAYG) instalment Annual PAYG instalment notice screen.

    Next

    Use this button to accept the ATO instalment amount or your new annual estimate.

    The amount will be transferred to 5A on the Complete activity statement – summary screen and the Complete activity statement – pay as you go (PAYG) instalment Amount variation result screen will be displayed.

     


     

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We are committed to providing you with advice and guidance you can rely on, so we make every effort to ensure that what we give you is correct.

If you follow our advice or guidance and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

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