FAQs
What are PAYG instalments?
Taxpayers who earn income that is not taxed at source may be enrolled in the PAYG Instalment system. This is a the PAYG instalments system if you have all of the following:
instalment income from your latest tax return of $4,000 or more
tax payable on your latest notice of assessment of $1,000 or more
estimated (notional) tax of $500 or more.
Once you have entered the PAYG instalments system, you will receive activity statements or instalment notices showing your instalment rate or amount. You can view, manage and pay your instalments online through your MyGov account.
Can I opt out of PAYG Instalments?
No unfortunately not. You can vary the method by which the instalments are calculated or the amount online through your account.
What if my income from investments is lower this year?
You can vary your instalments if there has been a significant change in your income levels. This can be done online through your MyGov account
What happens if I pay too much?
Your instalments are claimed back on your income tax return. If you have overpaid these, they will be refunded on lodgement of your income tax return
What is Div 293?
Div 293 is additional tax on superannuation contributions for high income earners.
If your adjusted taxable income plus your superannuation contributions are over $250,000 in a financial year, an additional 15% tax is payable on your superannuation contributions.
Who pays the tax?
Div 293 is assessed to you personally. You have the option to elect to release the tax liability from your superannuation fund to pay the tax. You must complete this election online within 60 days.
Can I leave the funds in my super and just pay the tax?
Yes, you can. Releasing the amount from super is an election. You can choose to pay the tax amount personally.
What are Excess Concessional Contributions?
Having excess concessional contributions means you've contributed more than the concessional (pre-tax) contributions cap to your superannuation fund in a financial year. For the 2025 financial year that amount is $30,000.
prepayment of taxes. The assumption is that your income will be similar to the last return lodged and you will be asked to pay tax in advance on that basis.
These instalments are then credited in your income tax return for that financial year.
Who needs to pay PAYG instalments?
You will automatically enter
The excess amount over the cap is included in your assessable income and taxed at your marginal tax rate, minus a 15% tax offset. You may also need to pay Excess Concessional Contributions (ECC) charge (an interest charge).
This amount is often adjusted on lodgement of your income tax return and may be included in your notice of assessment. If not adjusted on lodgement, you will receive an amended notice of assessment once your superannuation contributions are reported from your fund.
Who pays the tax?
As the excess is added to your taxable income, you can choose to withdraw up to 85% of the excess amount from your super. This amount can then be used to pay the additional taxes.
You have 60 days from the notice to make this election online.
Can I leave the funds in my super and just pay the tax?
Yes, you can. Releasing the amount from super is an election. You can choose to pay the tax amount personally.
However, if you have already used your non-concessional super limit, you may be required to release the funds to avoid the additional unintended consequences. If this is the case, please discuss with your AGS Adviser.