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Trevor Monaghan
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Hi Fryzie,

I think you are referring to your quarterly PAYG tax instalment. There are usually 2 methods to calculate the instalment.

1) The ATO gives you a % and you just need to apply your gross income for the quarter (excluding GST) to that percentage to work out your instalment amount. Your expenses are irrelevant (unless you receive a distribution from a partnership or trust).

2) The ATO gives you a flat amount to pay that they have already calculated for you.

You will only usually be offered both options in the September quarter and then you are locked in to that option for a further 3 quarters. Interestingly you can vary the ATO’s pre-filled amounts up or down if you have a good reason.

You should contact the accountant that will be completing your tax return and discuss this further with them as you may have some particular circumstances that need to be taken into account.

Trevor Monaghan
Chartered Accountant
Climax Business Strategies
http://www.climaxbusiness.com.au