Lower tax instalments for small business – PAYG in 2022-23
PAYG instalments are regular prepayments made during the year of the tax on business and investment income. The actual amount owing is then reconciled at the end of the income year when the tax return is lodged.
Normally, GST and PAYG instalment amounts are adjusted using a GDP adjustment or uplift. For the 2022-23 income year, the Government has set this uplift factor at 2% instead of the 10% that would have applied. The 2% uplift rate will apply to small to medium enterprises eligible to use the relevant instalment methods for instalments for the 2022-23 income year:
- Up to $10 million annual aggregated turnover for GST instalments, and
- $50 million annual aggregated turnover for PAYG instalments
The effect of the change is that small businesses using this PAYG instalment method will have more cash during the year to utilise. However, the actual amount of tax owing on the tax return will not change, just the amount you need to contribute during the year.
Related Insights
What the Proposed Negative Gearing Changes Could Mean for Property Investors
What the Proposed Negative Gearing Changes Could Mean for Property Investors
The Federal Budget proposes major changes to negative gearing. Understand who may be affected and what it could mean for future property investors.
Understanding the Proposed Trust Tax Changes
Understanding the Proposed Trust Tax Changes
The Federal Budget proposes changes to trust taxation. Understand who may be affected and the key considerations for trustees and families.
Preparing for the Proposed Capital Gains Tax Changes
Preparing for the Proposed Capital Gains Tax Changes
The Federal Budget proposes major CGT reforms. Understand the proposed changes and what they could mean for investors and asset owners.
We are here for you
We look forward to working with you to help you achieve a better financial future. Let us guide you on the path to financial success.
Contact your preferred Murray Nankivell office today.
