Pay as you go (PAYG) instalments help you budget for your income tax and keep a healthy cash flow. By making regular payments during the year (through your activity statements) you won’t have to pay a large tax bill when you lodge your tax return.

You’ll receive a quarterly instalment notice, instead of a business activity statement (BAS), if you:

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