PAYG instalments how to complete your activity statement

Transcription

1 Istructios for busiesses ad ivestors PAYG istalmets how to complete your activity statemet For more iformatio visit NAT

2 Our commitmet to you We are committed to providig you with accurate, cosistet ad clear iformatio to help you uderstad your rights ad etitlemets ad meet your obligatios. If you follow our iformatio i this publicatio ad it turs out to be icorrect, or it is misleadig ad you make a mistake as a result, we must still apply the law correctly. If that meas you owe us moey, we must ask you to pay it but we will ot charge you a pealty. Also, if you acted reasoably ad i good faith we will ot charge you iterest. If you make a hoest mistake i tryig to follow our iformatio i this publicatio ad you owe us moey as a result, we will ot charge you a pealty. However, we will ask you to pay the moey, ad we may also charge you iterest. If correctig the mistake meas we owe you moey, we will pay it to you. We will also pay you ay iterest you are etitled to. If you feel that this publicatio does ot fully cover your circumstaces, or you are usure how it applies to you, you ca seek further assistace from us. We regularly revise our publicatios to take accout of ay chages to the law, so make sure that you have the latest iformatio. If you are usure, you ca check for more recet iformatio o our website at or cotact us. This publicatio was curret at November MORE INFORMATION For a copy of ay of the publicatios referred to i these istructios, or for more iformatio about PAYG istalmets or completig your activity statemet: visit our website at phoe Other activity statemet istructios: PAYG withholdig how to complete your activity statemet (NAT 7394) Wie equalisatio tax how to complete your activity statemet (NAT 7390) Luxury car tax how to complete your activity statemet (NAT 7391) Guide to activity statemets. If you do ot speak Eglish well ad eed help from the ATO, phoe the Traslatig ad Iterpretig Service o If you are deaf, or have a hearig or speech impairmet, phoe the ATO through the Natioal Relay Service (NRS) o the umbers listed below: TTY users, phoe ad ask for the ATO umber you eed Speak ad Liste (speech-to-speech relay) users, phoe ad ask for the ATO umber you eed iteret relay users, coect to the NRS o ad ask for the ATO umber you eed. If you would like further iformatio about the NRS, phoe or helpdesk@relayservice.com.au AustrAlIA taxatio OffIce for the Commowealth of australia, 2012 You are free to copy, adapt, modify, trasmit ad distribute this material as you wish (but ot i ay way that suggests the ATO or the Commowealth edorses you or ay of your services or products). PublIshed by Australia Taxatio Office Caberra November 2012 JS 26169

3 INTROduCTION Pay as you go (PAYG) istalmets is a system for payig amouts towards your expected ed of year icome tax liability. We work out your actual icome tax liability whe we assess your aual icome tax retur. To make sure your icome tax assessmet takes ito accout the istalmets you ve paid through the year, you must fialise your PAYG istalmets before you lodge your icome tax retur. For more iformatio about PAYG istalmets, refer to Itroductio to pay as you go (PAYG) istalmets (NAT 4637). The dates give i these istructios are based o a balacig date of 30 Jue, which is whe the majority of taxpayers i Australia balace their accouts. PArtershIPs Ad ActIvIty statemets If you are a parter i a partership, you may receive more tha oe activity statemet. For example, if your partership is registered for goods ad services tax (GST): you ll receive a activity statemet for the partership to report GST, ad each parter may also receive a activity statemet to pay their ow PAYG istalmet. If you are a parter i a partership or a beeficiary of a trust, there are special rules to work out the amout to iclude i your idividual istalmet icome. These rules are explaied i: PAYG istalmets icome parterships (NAT 3494), ad PAYG istalmets icome trusts (NAT 3495). PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 1

4 YOuR ACTIvITY STATEmENT Below is a example of a quarterly activity statemet. Your activity statemet will cotai all of your reportig requiremets ad may ot look exactly like this example. example: busiess activity statemet frot This bar code is used by our electroic scaers to idetify your activity statemet. The documet ID is a uique idetifier for each activity statemet you receive. Your Australia busiess umber (ABN) or tax file umber (TFN). This is the optio you complete if you are payig a PAYG istalmet amout otified by us. This is the optio you complete if you pay your PAYG istalmet by calculatig your istalmet icome x istalmet rate. This is where you sig ad date your activity statemet. B Whe completig this form: prit clearly usig a black pe roud dow to whole dollars (do ot show cets) if reportig a zero amout, prit 0 (do ot use NIL) leave boxes blak if ot applicable (do ot use N/A, NIL) do ot report egative figures or use symbols such as +,, /, $. PAYG icome tax istalmet For the QUARTER from 1 Jul 2012 to 30 Sep 2012 Complete Optio 1 OR 2 (idicate oe choice with a X) Optio 1: Pay a PAYG istalmet amout quarterly ATO istalmet amout T7 $ Write the T7 amout at 5A. If varyig the T7 amout, see over. OR Optio 2: Calculate PAYG istalmet usig icome times rate PAYG istalmet icome T1 $,,,.00 Notioal tax of ATO istalmet rate T % $XXX,XXX,XXX from your XXXX ameded assessmet Write the result of T1 x T2 at 5A. If varyig the T2 rate, see over. Paymet or refud? Is 8A more tha 5B? (idicate with X) Michael Joes 123 Lower Moutais Road MT PLEASANT NSW 2222 Declaratio I declare that the iformatio give o this form is true ad correct, ad that I am authorised to make this declaratio. Sigature Date / / NAT [JS 20301] 5400 Yes, the write the result of 8A mius 5B at 9. This amout is payable to the ATO. Office use oly Documet ID Form due o Paymet due o Cotact phoe umber Authorised cotact perso who completed the form Amouts you owe the ATO PAYG icome tax istalmet Deferred compay/fud istalmet 5A $,,,.00 7 $,,,.00 5A + 7 8A $,,,.00 Amout the ATO owes you Credit from PAYG icome tax istalmet variatio No, the write the result of 5B mius 8A at 9. This amout is refudable to you (or offset agaist ay other tax debt you have). 5B $,,,.00 Retur this completed form to Your paymet or refud amout 9 $,,,.00 Do ot use symbols such as +,, /, $ HRS MINS Estimate the time take to complete this form. Iclude the time take to collect ay iformatio. Activity statemet istructios are available from or ca be ordered by phoig The ATO is authorised by the tax laws to collect this iformatio to admiister those laws ad may pass iformatio to other govermet agecies. More iformatio about privacy ad access to your tax iformatio is available from PAYMENT ADVICE - 59 Michael Joes From XXXX ameded assessmet TFN australia ta atio of ce loc ed Bag 1 Perith sw 1 ATO code July to September Oct Oct 2012 ABN This is the reportig period that the activity statemet covers. It s usually a moth or a quarter. These are importat dates. They idicate whe you have to lodge your activity statemet ad whe you have to make a paymet. These are your cotact details. We use this iformatio to cotact you if there is a problem with your activity statemet. This is the sectio where you summarise your reportig obligatios ad calculate whether you are due a refud or you eed to pay. This is the paymet advice that you use whe makig a paymet. Amout paid Australia Taxatio Office Locked Bag 1793 PENRITH NSW 1793 EFT code To make sure we sca your activity statemet correctly: use a black pe leave boxes blak if they do t apply to you, uless we ask you to write 0 roud dow to whole dollars (do t show cets) do t report egative figures or use symbols such as +,-,/,$, ad do t write ay additioal iformatio o your activity statemet cotact us if your details have chaged. 2 PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

5 YOuR ACTIvITY STATEmENT example: busiess activity statemet rear Variatio codes (T4) Reaso for varyig T4 code Chage i ivestmets 21 Curret busiess structure ot cotiuig 22 i ificat c a e i tra i co itios 23 Iteral busiess restructure 24 Chage i legislatio or product mix 25 Fiacial market chages 26 Use of icome tax losses 27 Optio 1: PAYG istalmet amout If varyig the T7 amout, complete T8, T9, T4 Reaso code for variatio OR Estimated tax for the year Varied amout payable for the quarter T4 Optio 2: PAYG istalmet rate If varyig the T2 rate, complete T3, T11, T4 New varied rate T3. % Reaso code for variatio T8 $,,,.00 T9 $ T3 x T1 T11 $ T4,,,.00 Write the T9 amout at 5A o the frot,,,.00 Write the T11 amout at 5A o the frot You also eed to complete these details if you wat to vary the PAYG istalmet amout otified by us. You also eed to complete these details if you wat to vary the PAYG istalmet rate otified by us. BPAY : cotact your acial istitutio to make this paymet from your cheque or savigs accout. Quote biller code ad your EFT code (show o the frot of the paymet slip) as the customer referece umber. Credit card: paymets ca be made olie or by phoe, a card paymet fee applies. Go to or phoe Direct credit: you ca electroically trasfer fuds to the ATO s direct credit bak accout usig olie bakig facilities. use BSB , Accout umber ad your EFT code. Phoe for assistace if required. met ods of paymet Direct debit: have your paymet deducted from your acial istitutio accout (ot credit cards). Phoe to orgaise a direct debit or to get further iformatio. Mail paymets: mail the paymet slip together with your cheque or moey order usig the evelope provided. Please do ot use pis or staples. do ot sed cash. See below for cheque iformatio. Post of ce: paymets ca be made at ay post of ce by cash, cheque or EFTPOS (where available ad subject to daily limits). A $3,000 limit applies to cash paymets. Your paymet slip must be preseted with your paymet. Cheques/moey orders should be for amouts i Australia dollars ad payable to deputy Commissioer of Taxatio. Cheques should be crossed Not Negotiable. Paymets caot be made i perso at ay ATO site or shopfrot. PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 3

6 REPORTING OPTIONS This sectio outlies the optios for reportig PAYG istalmets. Geerally, if you have busiess or ivestmet icome, you will pay PAYG istalmets quarterly or aually. You must choose your reportig optio by the due date of your first activity statemet for the icome year. You caot chage that optio util the first quarter of the ext icome year. If you have already chose a optio, there will be a pre-prited X i the box ext to that optio. If you have ot made a valid choice by the due date, the default optio will apply. If you paid PAYG istalmets last year, you will default to the same optio you used last year (assumig you are still eligible for it). If this is the first year that you are payig PAYG istalmets, you will default to optio 1 (payig a istalmet amout) if you are eligible for it. report Ad PAy A PAyG IstAlmet AuAlly If you choose to pay a aual PAYG istalmet, your choice remais i place idefiitely uless your circumstaces chage or you tell us that you o loger wish to pay aually. to calculate your quarterly istalmet amout. This optio also meas you will kow the amout of your istalmet each quarter, which may help you to pla ad budget for the paymet. Varyig your istalmet amout If you thik that usig the pre-prited amout at T7 will result i you payig more (or less) tha your expected tax liability for the year, you ca vary it. You may be liable to pay the geeral iterest charge if you vary your PAYG istalmet amout dow, ad ed up payig less tha 85% of the actual tax that you should have paid o your busiess ad ivestmet icome. Primary producers ad special professioals (such as sports professioals ad authors) Eligible primary producers ad special professioals who choose optio 1 pay oly two istalmets istead of four. uder this arragemet you geerally pay 75% of your aual PAYG istalmet liability with your activity statemet for quarter three (Jauary to march) ad the remaider with your quarter four activity statemet (April to Jue). For more iformatio o aual reportig, refer to Payig your aual PAYG istalmet (NAT 9411) or cotact us o report Ad/Or PAy PAyG IstAlmets quarterly Eligible quarterly PAYG istalmet payers ca choose from the two reportig optios outlied below. Your quarter oe activity statemet will cotai a box ext to each of the optios available to you. Place a X i the box ext to the optio you choose. If you have already chose a optio, there will be a pre-prited X i the box ext to that optio. optio 1: Pay a PaYG istalmet amout quarterly Optio 1 is available to: all idividuals compaies ad superauatio fuds with busiess or ivestmet icome of $2 millio or less i their last icome tax retur, ad compaies ad superauatio fuds that are eligible to pay a aual PAYG istalmet. uder optio 1, we calculate the amout you eed to pay based o the busiess ad ivestmet icome show o your most recet icome tax retur (adjusted by a gross domestic product (GdP) amout). You do t eed to kow how much icome you are earig to work out your istalmet amout. This is a good optio if you have difficulty gatherig iformatio i time For more iformatio, refer to PAYG istalmets for primary producers ad special professioals (NAT 4352). optio 2: Calculate PaYG istalmet usig icome times rate This optio is available to all taxpayers. uder optio 2, the amout you pay is based o your actual busiess ad ivestmet icome for the quarter, istead of a estimate based o your previous tax situatio. This may help your cash flow because istalmets go up ad dow i lie with fluctuatios i your actual icome. Varyig your istalmet rate If you thik that usig the pre-prited rate at T2 will result i you payig more (or less) tha your expected tax liability for the year, you ca vary it. You may be liable to pay the geeral iterest charge if you vary your PAYG istalmet amout dow, ad ed up payig less tha 85% of the actual tax that you should have paid o your busiess ad ivestmet icome 4 PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

7 PAYG INSTALmENT OPTION 1 LABELS Eligible primary producers ad special professioals who pay two istalmets should use the Two istalmets aually eligible primary producers ad special professioals table. If the result is a positive amout, write it at T9. If it s a egative amout or zero, write 0 at T9. t7 AtO IstAlmet AmOut If you choose optio 1, T7 will show a amout worked out by us. If you wat to pay this amout, copy it to 5A (PAYG icome tax istalmet) o your activity statemet. If you thik that usig the pre-prited amout will result i you payig more (or less) tax tha your expected tax for the year, you ca vary it. To vary your istalmet amout, you must fill i T8, T9 ad T4. T7 could also be your most recet varied amout if you have varied the istalmet amout i a previous quarter i the same icome year. I some cases, we may sed you a istalmet otice rather tha a activity statemet. If you do ot wish to vary the pre-prited istalmet amout(s), you oly eed to pay the amout show by the due date ad you do ot eed to lodge the otice. The istalmet otices are: quarterly PAYG istalmet otice (idetified by a R i the top left had corer) quarterly GST ad PAYG istalmet otice (idetified by a T i the top left had corer), ad aual PAYG istalmet otice (idetified by a N i the top left had corer). t8 estimated tax for the year If you wat to vary your PAYG istalmet amout, you must first estimate the tax you expect to pay o your busiess ad ivestmet icome for the year. Write this figure at T8. t9 varied AmOut for the quarter use the followig Four istalmets aually table to calculate the amout at T9. If it s a egative amout, you may wish to claim a credit at 5B Credit from PAYG icome tax istalmet variatio. four istalmets aually If the istalmet quarter is: The first i the icome year for which you must pay a istalmet Your secod for that icome year Your third for that icome year Your fourth for that icome year Your varied istalmet amout is: 25% of your estimated tax from T8 for the icome year. 50% of your estimated tax from T8 for the icome year, less the amout of your first quarter istalmet. 75% of your estimated tax from T8 for the icome year, less the amout of your first ad secod quarter istalmets, plus ay credit you claimed for the secod istalmet (amouts reported at 5B o a previous activity statemet). 100% of your estimated tax from T8 for the icome year, less the amout of your first, secod ad third quarter istalmets, plus ay credit you claimed for the secod ad third istalmets (amouts reported at 5B o a previous activity statemet). if you are subtractig a previous quarter istalmet as part of your calculatio: use the varied istalmet amout if that quarter was varied, ad subtract the amout whether you have paid the istalmet or ot. PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 5

8 PAYG INSTALmENT OPTION 1 LABELS two istalmets aually eligible primary producers ad special professioals If the istalmet is due i: April July Your varied istalmet amout is: 75% of your estimated tax for the icome year. 100% of your estimated tax from the icome year, less the amout of your April istalmet. If we first otify you of a istalmet rate durig the secod, third or fourth quarters of the icome year ad you choose to vary your istalmet amout, you will eed to exclude the earlier quarters whe you work out your varied istalmet amout. This will result i a lesser amout. Refer to How to vary pay as you go (PAYG) istalmets (NAT 4159) for further iformatio. t4 reaso code for variatio If you ve varied your PAYG istalmet amout, you must tell us why. Choose the reaso from the table below that best describes why ad write the correspodig code at T4. Reaso Code Chage i ivestmets 21 Curret busiess structure ot cotiuig 22 Sigificat chage i tradig coditios 23 Iteral busiess restructure 24 Chage i legislatio or product mix 25 Fiacial market chages 26 use of icome tax losses 27 Cosolidatios 33 5A PAyG IcOme tax IstAlmet Copy the amout at T7 (or T9 if you are varyig) to 5A o your activity statemet. This is the total amout of your PAYG istalmet for the quarter. If your oly obligatio is PAYG istalmets, you ca write 0 at 5A if your istalmet amout for the period covered by the activity statemet is $50 or less. 5b credit from PAyG IcOme tax IstAlmet variatio If you decided to vary your istalmet amout ad the amout of the istalmet worked out at T9 is egative, you may be etitled to a credit from earlier istalmets for the same icome year. We offset this credit agaist your other liabilities o your activity statemet. We iclude it i your et obligatios amout at 9 i the Paymet or refud? sectio of your activity statemet. If the istalmet you are varyig is your first for the icome year, you ca t claim a credit. Eve if you are etitled to a credit, you do t have to claim it i your activity statemet. If your total istalmets for the year are more tha the tax o your busiess ad ivestmet icome, we will credit you with the overpaymet whe we assess your aual icome tax retur. To claim a credit where the amout worked out at T9 is egative, copy the amout at T9 to 5B. If you thik you may be etitled to a credit ad wish to claim it o your activity statemet, refer to How to vary pay as you go (PAYG) istalmets (NAT 4159). 6 PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

9 PAYG INSTALmENT OPTION 2 LABELS t1 PAyG IstAlmet IcOme Work out your istalmet icome for the quarter ad write this at T1. If you do t have ay istalmet icome for the period, write 0. Iclude at T1 all ordiary icome you eared from your busiess or ivestmet activities for the quarter (excludig GST) such as: goods or services that you sell or supply iterest received or credited to your bak accout gross ret divideds paid or reivested o your behalf (do ot iclude imputatio credits) royalties gross amout of icome where tax has bee withheld because you did ot provide your tax file umber or Australia busiess umber foreig pesios that are assessable i Australia your proportio of ay partership or trust icome, withdrawals from farm maagemet deposits (if you make a farm maagemet deposit, your istalmet icome for that period is reduced) fuel tax credits ad Taxatio of fiacial arragemets (TOFA) made up of total TOFA gais less TOFA losses but oly iclude if this is a positive amout. loas received ower s capital grats uder the product stewardship (oil) beefit ad the cleaer fuels grat scheme amouts trasferred betwee accouts imputatio (frakig) credits iterest or other earigs credited to a first home saver accout that you hold or a paymet to you from such a accout, or govermet cotributios paid uder the First Home Saver Accout Act do t reduce your istalmet icome by ay allowable deductios that you icur i derivig the icome. The allowable deductios that you claimed i your most recetly assessed icome tax retur will be reflected i your istalmet rate calculated by us. You ca vary your istalmet rate if you thik that usig the rate provided will result i you payig more (or less) tha your expected tax for the icome year. t2 IstAlmet rate The rate pre-prited at T2 will be either: the istalmet rate worked out by us, or your most recet varied rate if you have varied the istalmet rate i a previous quarter i the same icome year. If you wat to use the rate pre-prited at T2, multiply the amout show at T1 by this rate. Write the result at T11. To vary the istalmet rate, you must fill i T3 ad T4. For more iformatio, refer to: PAYG istalmets parterships (NAT 3494), ad PAYG istalmets trusts (NAT 3495). do t iclude at T1: Capital gais GST, wie equalisatio tax or luxury car tax you collected iput tax credits ay icome (such as salary, wages or icome subject to a PAYG volutary agreemet) where amouts have bee withheld or should have bee withheld (other tha icome that a amout has bee withheld from because you did ot provide your tax file umber or Australia busiess umber) t3 ew varied rate If you wat to vary your istalmet rate, write your ew rate at T3. For more iformatio, refer to How to vary pay as you go (PAYG) istalmets (NAT 4159). PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 7

10 PAYG INSTALmENT OPTION 2 LABELS t4 reaso code for variatio If you vary your istalmet rate, choose a reaso from the list below that best describes why ad write the appropriate code at T4. Reaso Code Chage i ivestmets 21 Curret busiess structure ot cotiuig 22 Sigificat chage i tradig coditios 23 Iteral busiess restructure 24 Chage i legislatio or product mix 25 Fiacial market chages 26 use of icome tax losses 27 Cosolidatios 33 There is o eed to vary just because your icome has goe up or dow sice your last quarter. The istalmet rate is a percetage, so the amout you pay will go up or dow i keepig with your icome. For example, if your ivestmet ad busiess icome for the quarter is zero, the amout you pay will also be zero, regardless of your istalmet rate. t11 t1 t2 (or t1 t3) Multiply the amout at T1 by either: the istalmet rate pre-prited at T2, or if you vary the rate, your ew varied rate that you wrote at T3. Write the result at T11. example I the first quarter of the icome year, you are offered a choice of optios. You decide to use optio 2 ad you place a X i the optio 2 box. Your icome for the quarter is: total sales of $22,000 (icludig $2,000 GST), ad iterest ad divideds received of $100. Your istalmet icome is $20,100 (that is $22,000 less $2,000 GST plus $100 other icome). Write the figure 20,100 at T1. Our calculated istalmet rate pre-prited o your activity statemet at T2 is 1.7%. You calculate the istalmet amout to pay as follows: T1 T2 = $20, % = $ Write the figure 341 at T11. Copy the figure 341 to 5A. X A PAyG IcOme tax IstAlmet Copy the amout at T11 to 5A o your activity statemet. This is the amout of your PAYG istalmet for the quarter. You ca write 0 at 5A istead of your istalmet amout if: your istalmet amout for the period covered by the activity statemet is $50 or less you are ot claimig a credit at 5B, ad PAYG istalmets is your oly obligatio PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

11 PAYG INSTALmENT OPTION 2 LABELS use the followig table to calculate the amout of credit you ca claim at 5B. 5b credit from PAyG IcOme tax IstAlmet variatio If you have decided to use a varied istalmet rate ad your varied istalmet rate at T3 is less tha the istalmet rate pre-prited at T2, you may be etitled to a credit from earlier istalmets for the same icome year. A credit will oly be available if the earlier istalmets were worked out usig a higher istalmet rate. We offset this credit agaist ay other tax liabilities o your activity statemet. This is icluded i your et tax paymet or refud amout at 9 i the Paymet or refud? sectio of your activity statemet. If the istalmet you are varyig is your first for the icome year, you ca t claim a credit. 1 Add up your earlier istalmets (the amouts reported at 5A) eve if you have t paid all of them 2 Add up ay credits claimed i previous quarters (amouts reported at 5B o a previous activity statemet) 3 Subtract the amout at step 2 from step 1 4 Add up istalmet icome for all earlier quarters of the icome year 5 Multiply the amout at step 4 by the varied istalmet rate 6 Subtract the amout at step 5 from the amout at step 3 7 If the result is a positive amout, this is the amout of credit that may be claimed at 5B $100 $0 $100 $1,000 $1,000 5% =$50 $100 $50 =$50 $50 Eve if you are etitled to a credit, you do t have to claim it i your activity statemet. If your total istalmets for the year are more tha the tax o your busiess ad ivestmet icome, we will credit you with the overpaymet whe we assess your aual icome tax retur. If you thik you may be etitled to a credit ad wish to claim it o your activity statemet, refer to How to vary pay as you go (PAYG) istalmets (NAT 4159). If you are etitled to a credit for a previous istalmet ad wish to claim it o your activity statemet, write the credit amout at 5B. example We otify you that your istalmet rate will be 10% for the first quarter. You multiply this rate by your istalmet icome of $1,000, resultig i a istalmet paymet of $100. For the secod quarter you choose to vary the istalmet rate to 5%. You multiply your curret istalmet icome of $1,000 by the varied rate, resultig i a istalmet paymet of $50. You the decide to claim a credit to put you i the positio that you would have bee i if your istalmet rate had always bee 5%. PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 9

12 LOdGING ANd PAYING The due date for lodgig ad payig is pre-prited at the top right had corer of your activity statemet. You ca lodge ad pay electroically, by mail or i perso, but you eed to do it o time to avoid iterest ad pealties. Eve if you have o amouts to report for the period, or are havig difficulty payig, it s still importat to make sure we receive your activity statemet by the due date. how to lodge electroically You ca lodge electroically usig oe of the followig: Busiess Portal stadard busiess reportig (SBR) electroic commerce iterface (ECI) over the iteret, or your registered aget. For more iformatio o electroic lodgmet, visit: or phoe us o for busiess tax equiries or for persoal tax equiries the SBR website. By mail Mail your origial, completed activity statemet with your cheque usig the pre-addressed evelope provided. If you misplace the evelope, you ca sed your activity statemet to: vic, TAS, WA, SA, NT NSW, QLd, ACT Australia Taxatio Office Australia Taxatio Office Locked Bag 1936 Locked Bag 1793 AlBuRY NSW 1936 PeNRiTh NSW 1793 It s importat that you sed your origial activity statemet, ot a copy or a versio geerated from a commercial software package. If you do use a commercial package, make sure you copy the iformatio oto your origial statemet. how to PAy We offer you a rage of coveiet paymet optios bpay make a paymet directly from your cheque or savigs accout to us usig your fiacial istitutio s telephoe or iteret bakig service. use Biller code The BPAY referece umber is the EFT code o your activity statemet. credit card make a credit card paymet coditios apply. You ca make credit card paymets o lie or over the phoe. To pay o lie go to to pay over the phoe call To make credit card paymets you will eed to supply your EFT or PRN from your paymet slip. direct credit Trasfer your paymet to us olie from your cheque or savigs accout. You ca trasfer fuds directly to the ATO usig iteret bakig or a computer based bakig software package. direct debit Have your paymet automatically deducted from your cheque or savigs accout. You will eed to complete a direct debit request to have your paymet electroically deducted from your omiated bak accout. mail Mail your paymet slip together with a cheque or moey order to us. You ca sed a cheque usig the pre-addressed evelope provided. Be sure to iclude the origial paymet advice slip if you have lodged your activity statemet electroically. make cheques payable to the deputy Commissioer of Taxatio ad cross them Not egotiable. do t attach your cheque with pis or staples ad do t sed cash. Registered to BPAY Pty Ltd ABN PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

13 LOdGING ANd PAYING australia Post Pay by cash (up to $3,000), cheque or EFTPOS at your Post Office (subject to daily limits). Your origial paymet slip must be preseted with your paymet. To order additioal or replacemet paymet slips, phoe If you make a paymet at Australia Post, or you pay electroically, you must still sed your completed activity statemet to us either by mail or electroically, uless we advise you otherwise o the form. For more iformatio about direct credit, credit card or BPAY: phoe betwee 8.00am ad 6.00pm, Moday to Friday, or paymet@ato.gov.au For more iformatio about BPAY, cotact your fiacial istitutio. For more iformatio about direct debit: phoe betwee 8.00am ad 6.00pm, Moday to Friday, or eft-iformatio@ato.gov.au what If I ca t lodge Ad PAy O time? You must phoe us o to check whether alterative arragemets ca be made. You must still lodge your activity statemet by the due date, eve if you ca t pay o time. The geeral iterest charge will apply to ay amout ot paid by the due date. A pealty may also apply if you fail to lodge o time. expectig A refud? Geerally, if you have a Australia busiess umber (ABN), we ca oly pay refuds directly ito your properly omiated fiacial istitutio accout, so it s essetial that we have your correct accout ad brach (BSB) umbers. Your omiated accout must be at a brach of the istitutio i Australia. Geerally this accout must be held by you or you ad aother taxpayer or your registered aget. Cotact us o if you eed to chage your fiacial istitutio accout details. You will eed to provide proof of idetity. This icludes either your tax file umber, ABN or ame ad specific idetifiers (such as iformatio from a previously geerated tax otice). If you do t have a ABN, we will pay your refud by cheque. We may ot issue a refud if you have ot lodged a previous activity statemet or if you have provided icorrect bak details. If you are due a refud, we may apply it to offset ay taxatio debt (regardless of whether it is due ad payable) ad/or ay other due ad payable Australia Govermet debt that you may have, such as a Child Support Agecy debt. PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 11

14 CHECkLIST have you: filled i the PAYG istalmet boxes that apply to you? checked your calculatios? copied amouts correctly betwee boxes? You may eed to: complete ay other sectios that apply to you ad copy the totals to the summary sectio calculate whether you must make a paymet or if you re etitled to a refud complete the paymet or refud details, ad/or cotact us to update your address (refer to How do I update my address?). You must: sig ad date your activity statemet lodge your origial activity statemet by the due date, ad pay ay amouts you owe by the due date. record keepig You should keep a copy of your activity statemet, ad the records you used to prepare it, for five years after they are prepared, obtaied or the trasactios completed (whichever is the later). These records must be i writig ad i Eglish. Iformatio stored o magetic tape or computer disk is ot i a writte form such records must be i a form that is readily accessible ad easily coverted ito Eglish. If you do ot have access to a photocopier, you ca dowload a copy of the form from copy the iformatio from your origial activity statemet oto this form ad file it for your records. FREQuENTLY ASkEd QuESTIONS do I still eed to lodge A AuAl IcOme tax retur? Yes. PAYG istalmets is a system for payig amouts towards your expected ed-of-year icome tax liability. We work out your actual tax liability whe we assess your aual icome tax retur. We credit your PAYG istalmets for the year agaist your assessmet ad work out whether you owe more tax or are due a refud. To make sure you receive the correct amout of credit i your assessmet, you must fialise your PAYG istalmets before you lodge your tax retur. how do I work Out my IstAlmet IcOme at t1? This amout should iclude all ordiary icome eared from busiess or ivestmet activities for the quarter (excludig GST). For details of what istalmet icome icludes, refer to T1 PAYG istalmet icome. do I Iclude AmOuts I received from fuel Grats i my istalmet icome at t1? No. You do t iclude these amouts at T1. what is the istalmet rate Prited at t2? If this is your first PAYG istalmet for the icome year, we calculate a istalmet rate for you ad pre-prit it at T2. If this is ot your first PAYG istalmet for the icome year, the istalmet rate at T2 will be either: the istalmet rate calculated by us, or the varied istalmet rate you otified o a previous activity statemet. I was told I could Get A credit for PrevIOus IstAlmets If my IstAlmet rate chages. Is this correct? You may be etitled to a credit from earlier istalmets i the same icome year if you have varied your istalmet rate ad the rate you have writte at T3 is less tha the istalmet rate pre-prited at T2. You ca oly claim credits if you have varied your istalmet rate ad your earlier istalmets i that icome year were based o a higher istalmet rate. You may also be etitled to a credit if you use optio 1 ad vary your istalmet amout. For more iformatio, refer to 5B Credit from PAYG icome tax istalmet variatio. 12 PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT

15 FREQuENTLY ASkEd QuESTIONS why have I received A IstAlmet rate whe my busiess Is O loger tradig? Your istalmet rate is based o your most recetly assessed icome tax retur. Geerally, if you are a idividual ad your last icome tax retur showed $2,000 or more of icome from busiess or ivestmets ad you had a tax debt of $500 or more (disregardig ay volutary paymets or PAYG istalmet credits that were applied), you will be give a istalmet rate. Most compaies ad superauatio fuds must pay istalmets, uless they have lodged a fial retur. If you are usig the optio 1 istalmet amout ad your busiess is o loger tradig, you may wish to vary your istalmets to reflect the tax you expect to pay o your busiess ad ivestmet icome for the year. You ca vary to zero if you thik you will have o busiess or ivestmet icome this year. If you are usig the istalmet icome x rate (optio 2) to work out your istalmets ad your busiess is o loger tradig, your istalmet icome for the period is likely to be zero. As a result, your istalmet will be also be zero. You will be removed from the PAYG istalmets system after lodgmet of the fial icome tax retur for your busiess. what If I make A mistake? You ca correct a mistake by strikig it out i black pe. Write the ew iformatio as close as possible to the boxes for the label. You ca also use tape whiteout to correct errors. Do ot use liquid whiteout this causes problems with scaig which will delay the processig of your activity statemet. what If I Oly realised the mistake After lodgig my ActIvIty statemet? usually, you eed to lodge a revised activity statemet phoe us o to obtai a revised activity statemet form. Revised activity statemets are also available from the Busiess Portal, if you are a registered user. how do I update my Address? To esure you receive the correct mail for each of your tax obligatios i a timely maer, we ecourage you to esure the address details we have for you are correct. To update your address for receivig activity statemets, you ca phoe us o or log o to the Busiess Portal. To register for the Busiess Portal, or for more iformatio, visit or phoe us o for Persoal Tax equiries or for Busiess Tax equiries. ca I make A volutary PAymet? Yes. But you do t make volutary paymets o your activity statemet. If you have a electroic fuds trasfer (EFT) code, you ca make a volutary paymet by BPAY or by direct credit. If you do t have a EFT code, phoe us o for help. Alteratively, you ca mail your paymet to: vic, TAS, WA, SA, NT NSW, QLd, ACT Australia Taxatio Office Australia Taxatio Office Locked Bag 1936 Locked Bag 1793 AlBuRY NSW 1936 PeNRiTh NSW 1793 It s very importat that you iclude the followig iformatio with your volutary paymet: paymet type for example, PAYG istalmet paymet your ABN or tax file umber your full ame ad address (as show o the frot of your activity statemet), ad a cotact phoe umber, icludig the area code. PAYG INSTALmENTS HOW TO COmPLETE YOuR ACTIvITY STATEmENT 13

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