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The ATO asks for PAYG Instalments when a business makes a profit or gets investment income in the previous year, or when individuals get investment income. The ATO estimates what the likely profit or investment income will be based on that previous year (so long as it is over a threshold), and asks you to prepay a fraction of that estimate every quarter. That quarterly payment is your PAYG Instalment.

For clients who aren’t immersed in business, sometimes the names of the taxes they pay can be confusing. Especially when so many of them start with PAYG, and when wage and salary earners may have only met personal PAYG Income Tax. So, here’s a little intro to all the PAYGs.