Stopping PAYG instalments

If you are no longer earning business or investment income, you may be able to exit PAYG instalments.

Last updated 17 December 2024

You may be able to exit pay as you go (PAYG) instalments if you are no longer earning business or investment income.

Automatic exit

We will automatically remove you from PAYG instalments if you:

are eligible to claim the senior and pensioners tax offset in your tax return
report business and investment income of less than $4,000 (for residents, or $1 for non-residents) in your tax return
have a tax debt of less than $1,000 (after adjustments for PAYG instalments and voluntary payments) in your tax assessment
have a calculated PAYG instalment rate of 0.0%
have an estimated (notional) tax liability of less than $500
are under 18 and your tax return shows Division 6AA income less than the lowest marginal threshold, or
lodge a final tax return or non-lodgment advice, or your tax agent lodges a 'further return not necessary'.

We will also remove a taxpayer from PAYG instalments if we are advised they are deceased.

We will automatically remove a trust from PAYG instalments if it:

has an estimated (notional) tax liability of less than $500
reports instalment income of less than $4,000 in its tax return
has a tax debt of less than $1,000 (after adjustments for PAYG instalments and voluntary payments) in its tax assessment, or
has a calculated PAYG instalment rate of 0.0%.

We will automatically remove a company or super fund from PAYG instalments if all of the following apply:

it has a calculated PAYG instalment rate of zero or an estimated (notional) tax liability of less than $500
it has instalment income (excluding capital gains) in its most recent income tax assessment of less than $2 million
it is not the head company of a consolidated group.

You can exit PAYG instalments if you are no longer earning business or investment income.

You can't exit PAYG instalments if you have:

become bankrupt and are in a debt agreement (under Part IX of the Bankruptcy Act 1966) or personal insolvency agreement (under Part X of the Act)
a tax debt of less than $500 that would have been more than $500 after including PAYG instalments for the year
received a refund that would have been a debt of more than $500 after including PAYG instalments for the year.

You can make a request to exit PAYG instalments using your myGov account linked to the ATO's Online services.

Select Tax > Manage > Tax registrations > Cancel. This option will only be available when you become eligible to exit PAYG instalments.

You can also ask to exit through your registered tax agent or you can phone us on 13 28 61.

You can request to exit PAYG instalments using Online services for business.

You can also ask to exit through your registered tax agent, or you can phone us on 13 28 66.

If you lodge a tax return with income or tax above the entry thresholds, we will contact you about re-entering PAYG instalments.

You can re-enter PAYG instalments voluntarily if your circumstances change or you want to plan ahead for your income tax.

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