PAYG Instalment Calculator Australia 2025-26
Australian businesses and investors earning above $4,000/year in investment income or $1 in business income must pay quarterly PAYG instalments. This calculator estimates your quarterly payment and whether you will receive a refund or owe extra at year end.
Find your ATO-issued instalment rate on your BAS or MyGov. Default 8% is a common rate.
Quarterly Instalment
AUD2,400
Annual Total (4 quarters)
AUD9,600
Estimated Annual Tax Liability
AUD31,867
Estimated Refund / (Extra Tax)
AUD-22,267
PAYG instalments pre-pay your expected income tax. The ATO issues an instalment rate or amount on your BAS. You can vary instalments if your circumstances change, but varying to less than 85% of actual liability may attract a shortfall penalty.
What is the PAYG Instalment Calculator?
PAYG (Pay As You Go) instalments are a system for pre-paying income tax on business and investment income throughout the year. The ATO issues an instalment rate (%) or instalment amount on your quarterly BAS. This calculator uses the rate method: Instalment = Quarterly Income × ATO Rate.
Formula
Quarterly Instalment = Annual Income × PAYG Rate% ÷ 4. Year-end balance = Total instalments paid − Actual tax liability.- I
- = Expected annual business/investment income
- r_PAYG
- = ATO-issued instalment rate
How to use the PAYG Instalment Calculator
- 1
Step 1
Enter your expected annual business or investment income.
- 2
Step 2
Enter your ATO-issued PAYG instalment rate (from your BAS or MyGov).
- 3
Step 3
Select the calculation method.
- 4
Step 4
View your quarterly instalment and estimated year-end position.
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Frequently asked questions
Who needs to pay PAYG instalments in Australia?
You are required to pay PAYG instalments if your most recent tax return showed tax payable of $1,000+ and business/investment income of $4,000+, or if you had $4,000+ in investment income. The ATO will notify you when you enter the PAYG instalment system.
Can I vary my PAYG instalment?
Yes. You can vary your PAYG instalment amount on each BAS if your income has changed. However, if you vary and underpay by more than 15% of your actual liability, the ATO may charge a shortfall penalty.
Sources
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