PAYG Instalments: An Overview

The provided text from Expert-Tax explains Pay As You Go (PAYG) installments, which are prepayments of estimated income tax based on previous tax assessments determined by the Australian Taxation Office (ATO). These instalments are credited against a taxpayer’s actual tax liability when their annual tax return is lodged, potentially resulting in a refund or a remaining balance to pay. Taxpayers have the option to vary their PAYG instalment amounts if they believe the ATO’s estimate does not accurately reflect their current income.