News

ATO

ATO provides PAYG instalment relief

ATO PAYG instalments

The ATO has decided to remove penalties on varied PAYG instalments for individuals who believe their payments are too expensive because of COVID-19.

The ATO will not apply penalties or interest on varied pay-as-you-go (PAYG) instalments for SMSFs that remain affected by COVID-19, provided the funds can show they have taken reasonable care to estimate their end-of-year tax.

“This means making a reasonable and genuine attempt to determine your liability. When considering if a genuine attempt has been made, we take into account what a reasonable person would have done in your circumstances,” the regulator said.

The ATO added the PAYG instalments will only apply for the 2022 income year and will not extend into the new income year, and the varied amount or rate will apply for all remaining payments for the income year or until another variation has been made.

It advised individuals to consider their current situation and use the PAYG instalment calculator to estimate and vary payments.

In the event incorrect PAYG instalments have been made, a revised activity statement or subsequent instalment can be lodged.

Where a payment cannot be made, an instalment notice should be lodged and a payment arrangement organised with the regulator to ensure no debt is accumulated.

PAYG variations can be lodged via the myGov business portal or through a registered tax or BAS agent.

Copyright © SMS Magazine 2024

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital