PAYG Instalments

Understanding and Choosing the Right Method for a Business

Pay As You Go Instalments or PAYG Instalments are implemented by the Australian Taxation Office (ATO) to help businesses and individuals meet their income tax obligations throughout the financial year. It is particularly relevant for businesses that expect to have a tax liability at the end of the financial year. PAYG Instalments require businesses to make regular payments toward their expected tax liability, which are credited against their annual income tax assessment.

There are two primary methods to calculate and pay PAYG Instalments:

• Instalment Amount: Under this method, the ATO provides an estimate of your expected tax liability based on your previous year’s income and tax return. Businesses then make regular, pre-determined payments throughout the financial year, generally on a quarterly basis. The ATO’s estimate is designed to align with your expected income, ensuring your payments are proportional to your earnings.
• Instalment Rate: This method allows businesses to calculate their own PAYG Instalments based on their actual income and business activity. You are required to estimate your expected income for the current financial year and apply the applicable instalment rate, which can vary based on your business type and circumstances. Your payments will then fluctuate with your actual income, ensuring a more precise contribution to your annual tax liability.

Choosing the most suitable method for your business depends on various factors:

• Income Stability: If income is relatively stable and consistent from year to year, the Instalment Amount method may be more convenient, as it simplifies payment obligations.
• Income Variability: For businesses with fluctuating incomes, the Instalment Rate method offers flexibility by allowing adjustment to payments in accordance with actual earnings.
• Accuracy: If a business can make reasonably accurate income projections, the Instalment Rate method may help avoid overpaying or underpaying tax.

Source: ATO – Which PAYG instalment method best suits your needs?

The BAS Agent’s Role

A BAS Agent is permitted to make the changes on the BAS – to have the BAS calculate the correct PAYGI based on the information – however, it is not the permitted role of a BAS agent (nor any contractor who is not a Tax Agent) to advise on what a new PAYGI rate should be.

A BAS Agent needs to receive instructions from the correctly authorised person within a business (or the business’s Tax Agent) regarding the new PAYGI rate or outcome. The BAS Agent can then amend the rate on the BAS.

The Tax Agent’s Role

The revision of the PAYGI rate or amounts is the realm of the Tax Agent as it requires the interpretation and application of income tax laws to the business circumstances.

Cyber Wardens e-Learning Platform

Creating a Cyber Safe Environment

Cyber security is a challenge for us all. The last 12 months have shown us that no business, big or small, is immune to the cyber threat. Successful attacks are costly and significantly impact business reputation. Recovery is hard; we must learn to lock our digital doors to cyber criminals. As online scams and fraud continue to rise, Australia’s almost 5 million small business employees must be supported to upskill their cyber safety knowledge.

By bolstering the cyber capabilities of people who work in small business, we make it easier for small businesses to increase their cyber posture to prevent attacks and be resilient when and if they occur. Just like workplace safety officers help keep small businesses safe from physical hazards, Cyber Wardens will use the same skills to prevent and protect against digital threats.

Cyber Wardens e-Learning Platform

The Cyber Wardens e-Learning Platform has been developed and tailored specifically for small businesses. The program is designed by small business, for small business, giving owners and employees the tools they need to stay safe online. COSBOA’s Cyber Wardens program aims to become Australia’s first cyber safety workplace certification or micro-credential for the small business sector.

The Cyber Wardens program is a simple education tool designed to build a cyber-smart small business workforce. Cyber Wardens training can help you defend against digital break-ins and help you keep cyber criminals out of your business.

Anyone can be a Cyber Warden and help. The best part is that you don’t have to be tech-savvy or an IT wizard to put your hand up. Just like workplace safety officers help keep small businesses safe from physical hazards, Cyber Wardens will use the same skills to prevent and protect against digital threats.

The Vision

Over the next three years, the goal of the Cyber Warden Program is to train 60,000 small business Cyber Wardens. This initiative aims to arm them with the knowledge to:

• Identify cyber threats.
• Safeguard their businesses from digital threats.
• Access ongoing resources for support.

Visit the Cyber Wardens website for more information about the program:
Simplified Cyber Security for Australian Small Business

Click here for member access to the Cyber Wardens e-Learning Platform.