Glossary · 2026–27 income year
What are PAYG instalments?
PAYG instalments are regular prepayments of the income tax a business or individual expects to owe on business and investment income, so the liability is spread across the year rather than paid in one amount after the return. The ATO enters a taxpayer into the system based on the last return; instalments are usually paid quarterly with the BAS.
Also called: Pay as you go instalments
PAYG instalments are different from PAYG withholding, which is the tax an employer withholds from employees' wages and also reports on the BAS.
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