Quarterly PAYG instalment notice

Is there a set amount when the ATO decides to send out a Quarterly PAYG instalment notice? If your 2018 tax return had a tax payable of $3,800, does a $1,190 Quarterly PAYG instalment notice sound correct? I thought that there was a threshold of $4k or $5k then the ATO sends these out?

 

The threshold applies to the choice to elect a single annual (deferred) instalment.

The voodoo maths behind the ATO calculations is dubious. It assumes your instalment untaxed income will increase by a huge factor.

The letter issued advising the amended or new instalments will advise if you have that choice. If so you call the number of the letter and verbally confirm you elect annual and then the instalment is deferred until October 2020. By that time you should be able to determine actual instalment income and estimate a true shortfall and vary to that.

However for quarterly instalments basically estimate what you think the income subject to no tax will be and divide by 4. If that number is less than the ATO value vary it down. Then repeat calculation each quarter for 50%, 75% and 100%. Just do that before the due date.

 

I get all sort of number, sometimes it a few K, sometimes it under a K I don't know how they calculates it, I assume it based on some sort of dividend income formula, but I just pay as I always has capital gain to pay each year so the tax bill is a little smaller at tax time

My dividend income varies greatly depend on how I stacked my shares holding each season, I just got one dividend for $2600 for one stock this half, last half it only $320 as I increase my shareholding by several fold in this business

 

You may find the first quarter offers a choice of methods. Once done it is then in force for the year. The instalment % may be easier. Add up all non-taxed income in the period and apply the %. Just do the 25, 50, 75 and 100% check progressively each quarter and if the amount is high vary the %