Reporting and Paying PAYG

For taxpayers completing the IAS or the Pay As You Go (PAYG) instalment section of the BAS, there are two options for reporting and paying PAYG.

Tax has implemented these as options 1 and 2. The options are the same on both BAS and IAS.

Option 1: Pay PAYG Instalment Amount

The ATO has informed eligible taxpayers that they may pay the PAYG Instalment amount calculated by the ATO, quarterly.

If an eligible taxpayer chooses this method, they cannot revert to option 2 until the next income year.

For taxpayer adopting the Instalment method which Tax has implemented as Option 1, Labels T7—T9 and T4 are completed directly onto the activity statement.

Option 2: Calculate PAYG Instalment using Income Tax Rate

Tax implements this method as PAYG Option 2, which requires Labels T1—T4 to be completed directly on the activity statement or by using the supporting worksheets. This may be a quarterly or annual payment.

Label T1 PAYG Income Instalment: This is supported by the Quarterly instalment income worksheet.

Label T3 Varied Rate: This is supported by the 'Credit from PAYG instalment variation' worksheet which is also used for label 5B.