What to do with installment notices for GST and PAYG installments?

Many businesses in Australia get confused in the process of GST and PAYG instalments. They do not understand what to do with the instalment notice.

In this blog, we have provided you the information according to ATO’s website.

Based on the guidelines given on ATO’s website you will receive a quarterly goods and services tax (GST) or pay as you go (PAYG) instalment notice, instead of a business activity statement (BAS), if you:

  • report and pay your GST or PAYG instalments quarterly.
  • pay using the instalment amount advised by ATO (option 1).
  • have no other reporting requirements.

Your instalment notice will have a:

  • GST instalment amount displayed at G21 (if relevant)
  • PAYG instalment amount at T7.

Paying your instalment amount

You are required to pay the total GST and PAYG instalment amount by the due date on the notice.

If you receive your notice by post, you do not need to send the notice to the ATO with your payment. Keep the instalment notice for your records.

Varying your instalment amount

If you think that paying the instalment amount on your notice will result in you paying more (or less) than your expected tax for the income year, you can vary your instalment amount.

If you don’t want to vary, you can pay for the quarter. Then you’ll:

  • make a payment or receive a refund of GST when you lodge your Annual GST Return
  • pay income tax or receive a refund when you lodge your tax return.

See also:

Receiving your PAYG and GST instalment notice electronically.

ATO will no longer send you paper instalment notices for activity statements which are lodged electronically through:

  • a myGov account linked to the ATO
  • the Business Portal
  • Online services for agents
  • the practitioner lodgment service (PLS)
  • Standard Business Reporting (SBR)-enabled software.

You or your registered tax or BAS agent can access the instalment amount online three to four days after the activity statement generate date. If you do not use an agent and ATO have your email address, ATO will send you an email or SMS 21 days before the payment is due.

If you do not use ATO online services or a registered agent to lodge your activity statements, you will continue to receive your instalment notice by post.

If you are ready to make the change to electronic lodgement you can create an online account.

For other tax related queries, Visit the KPG Taxation website 

https://www.kpgtaxation.com.au/or contact us on the phone number to get expert professional advice to get Taxation benefits in Australia

Craigieburn Office Address: 37 Interlink Drive, Craigieburn VIC 3064, Australia


Call 03 9706 9313, or book online at www.kpgtacation.com.au and your tax agent will be in touch to help.


Email: info@kpgtaxation.com.au

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