New to PAYG instalments?

If you earn business and investment income over the entry threshold, we may automatically enter you into pay as you go (PAYG) instalments.

PAYG instalments are regular prepayments of the tax on your business and investment income.

Here’s what you need to know when starting PAYG instalments:

• We’ll let you know when you’ve entered the PAYG instalment system, what you need to pay and what your lodgment dates are.
• You’ll hear from us via a letter in your myGov Inbox, or Online services for business or Standard Business Reporting software. If none of these services apply to your circumstances, you or your registered agent will receive a letter in the mail.
• You can start making payments once we send you a business activity statement (BAS) or instalment notice.
• When you lodge your tax return, the PAYG instalments you’ve paid during the year are offset against your tax, leaving you with little or no tax to pay.
• If your circumstances change, you can vary your PAYG instalments.
• Remember, registered tax agents and BAS agents can help you with tax advice.

Source: ATO