Some taxpayers are incorrectly varying their pay as you go (PAYG) instalment rate or amount.
This may result in a debt at the end of the financial year and attract a general interest charge (GIC) if the variation was significantly incorrect.
We may contact you to discuss your clients’ PAYG instalment variations and how to help them get it right.
Advise your clients:
- They may have to pay GIC if they vary an instalment rate or amount to less than 85% of:
- The actual tax payable on their business and/or investment income for the year; or
- The instalment rate that should have applied for the income year.
- To vary up if they think they underestimated their rate or amount.