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Tax

PAYG instalments

Work out a client's quarterly PAYG instalment by the ATO's rate or amount method, and vary it when income changes.

PAYG instalments are payments towards a client's yearly income tax, made each quarter through their activity statement. The worksheet works out each quarter's instalment so it can flow onto the BAS.

How do I work out a quarter?

  1. Open the client and go to TaxPAYG instalments.
  2. Pick the Financial year.
  3. On the quarter's row, choose Add quarter.
  4. Pick the Method the ATO gave the client.
  5. Fill in the figures and choose Save quarter.

The quarters follow the financial year, so the first quarter is July to September. Saving a quarter again replaces what was there. Switching method clears the other method's figures.

Which method do I pick?

  • Instalment rate (T1 × T2): enter the Instalment income (T1) for the quarter and the ATO rate % (T2).
  • Instalment amount (T7): enter the ATO amount (T7) from the client's notice.

How is the instalment worked out?

  • Rate method: the quarter's instalment income times the rate. A varied rate replaces the ATO's rate.
  • Amount method: the ATO's amount, or your varied amount if you enter one.

How do I vary an instalment?

If the ATO's figure is too high or low for this year, enter a Varied rate % (T3) or Varied amount (T8), plus a Variation reason. The quarter is marked Varied.

A variation needs a reason. Keep your working in Notes in case the ATO asks.

Where does the instalment go?

The quarter's instalment fills the PAYG instalment line on that quarter's activity statement. It only fills a statement that covers exactly that quarter, so a monthly statement needs the figure typed in.

The tiles show Total instalments, Total instalment income (rate-method quarters only) and whether any quarter is Varied or Using the ATO’s figure.

Is the worksheet locked after the BAS is lodged?

No. The worksheet has no status and stays editable. Once a statement is lodged, its figures are frozen there, so changing the worksheet later doesn't change a lodged statement.

Made a mistake? Choose the bin on the quarter, then Clear, and start that quarter again. Editing needs the tax permission.

Next

Activity statements for clients

Prepare a client's BAS or IAS from their books and pay runs, check it, mark it ready and record it as lodged.

Prepare an income tax return

Start a client's return for the year, fill in the labels and schedules, check the working and get it ready to sign.

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Activity statements

Prepare a client's BAS or IAS from their books and pay runs, check it, mark it ready and record it as lodged.

FBT returns

List the fringe benefits a client gave their staff, work out the FBT payable and record the return as lodged.

On this page

How do I work out a quarter?Which method do I pick?How is the instalment worked out?How do I vary an instalment?Where does the instalment go?Is the worksheet locked after the BAS is lodged?Next