{"id":4311,"date":"2026-09-05T12:47:32","date_gmt":"2026-09-05T02:47:32","guid":{"rendered":"https:\/\/wiselinkaccountants.com.au\/payg-instalments-october-2026-vary-gic-australia\/"},"modified":"2026-09-05T12:47:32","modified_gmt":"2026-09-05T02:47:32","slug":"payg-instalments-october-2026-vary-gic-australia","status":"publish","type":"post","link":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/payg-instalments-october-2026-vary-gic-australia\/","title":{"rendered":"PAYG Instalments 2026-27: What Is Due 28 October, and What 11.51% Interest Changes"},"content":{"rendered":"<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"PAYG Instalments 2026-27: What Is Due 28 October, and What 11.51% Interest Changes\", \"description\": \"The first PAYG instalment of the 2026-27 year is due 28 October 2026. The ATO published the October to December general interest charge rate at 11.51% on 4 September 2026, the highest quarterly rate since January to March 2012, and GIC incurred from 1 July 2025 is not deductible. Entry thresholds of $4,000, $1,000 and $500 for individuals, the 85% limit on varying instalments, the difference between an activity statement and an instalment notice, and the automatic exit tests. For individuals and business owners in Melbourne and Brisbane.\", \"image\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/09\/payg-instalment-notice-hero-2026-09-05.jpeg\", \"datePublished\": \"2026-09-05T09:00:00+10:00\", \"dateModified\": \"2026-09-05T09:00:00+10:00\", \"inLanguage\": \"en-AU\", \"mainEntityOfPage\": {\"@type\": \"WebPage\", \"@id\": \"https:\/\/wiselinkaccountants.com.au\/payg-instalments-october-2026-vary-gic-australia\/\"}, \"author\": {\"@type\": \"Person\", \"name\": \"Lily Zhang\", \"jobTitle\": \"Founder & Principal Accountant\", \"hasCredential\": [\"CPA Australia member\", \"Registered Tax Agent\", \"ASIC Registered Agent\", \"NTAA Member\"], \"worksFor\": {\"@type\": \"AccountingService\", \"name\": \"Wiselink Accountants\"}, \"knowsLanguage\": [\"en\", \"zh\"]}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"Wiselink Accountants\", \"logo\": {\"@type\": \"ImageObject\", \"url\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2020\/02\/logo.png\"}}, \"about\": \"Australian pay as you go (PAYG) income tax instalments: automatic entry thresholds for individuals, trusts, companies and super funds, quarterly due dates with the September quarter falling due 28 October, the difference between an activity statement and an instalment notice and the two week electronic lodgment concession, varying an instalment and the 85% general interest charge threshold, the general interest charge rate of 11.51% for the October to December 2026 quarter and the removal of deductibility for GIC incurred on or after 1 July 2025, and the automatic exit tests for leaving the PAYG instalments system\"}<\/script><\/p>\n<p><!--\n\u9009\u9898\u4f9d\u636e: demand-supply-map \u65e0\u73b0\u6210\u884c \u2014\u2014 \u65b0\u60c5\u5883\uff08\"\u62a5\u5b8c\u7a0e\u4e4b\u540e ATO \u53cd\u8fc7\u6765\u8981\u6211\u6309\u5b63\u9884\u7f34\"\uff09\u3002\n         \u4eba\u7fa4\u4e0e s11\/4308 \u76f8\u90bb\u4f46\u66f4\u9760\u540e\uff1a\u4ed6\u4eec\u5df2\u7ecf\u62a5\u5b8c\u3001\u5df2\u7ecf\u6536\u5230\u8bc4\u7a0e\uff0c\u6b63\u5728\u6536\u90a3\u5c01 PAYG \u5206\u671f\u7684\u4fe1\u3002\n\u65f6\u70b9: 2026-09-05\u3002\u4e24\u4e2a\u786c\u65f6\u70b9\u53e0\u5728\u4e00\u8d77\uff1a\u2460 FY27 \u7b2c\u4e00\u5b63\uff08Jul\u2013Sep\uff09\u5206\u671f 28 Oct 2026 \u5230\u671f\uff1b\n      \u2461 ATO \u4e8e 2026-09-04\uff08\u6628\u5929\uff09\u521a\u516c\u5e03 Oct\u2013Dec 2026 \u5b63 GIC = 11.51%\u3002\n      4308\uff0809-01 \u53d1\uff09\u5f53\u65f6\u660e\u5199\u300cOct\u2013Dec \u5b63\u5c1a\u672a\u516c\u5e03\uff0c\u4e0d\u5916\u63a8\u300d\u2014\u2014\u4eca\u5929\u516c\u5e03\u4e86\uff0c\u672c\u6587\u63a5\u4e0a\uff0c\u4e0d\u662f\u590d\u8ff0\u3002\n\u67e5\u91cd: \u4e24\u6587\u4ef6\u5939 + \u7ad9\u4e0a 44 \u7bc7\u5168\u67e5\u3002\u7ad9\u4e0a\u65e0\u4efb\u4f55 PAYG instalments \u4e3b\u9898\u6587\u7ae0\u3002\n      4308 \u8bb2\"\u5f80\u5e74\u6ca1\u62a5\u600e\u4e48\u6536\u573a\"\uff08\u7f5a\u5219\/FTL\/default assessment\uff09\uff0c\u672c\u6587\u8bb2\"\u62a5\u5b8c\u4e4b\u540e\u7684\u9884\u7f34\u4e49\u52a1\"\uff0c\n      query \u5b8c\u5168\u4e0d\u540c\uff08payg instalments \/ vary payg \/ instalment notice \/ 28 october\uff09\u3002\n      GIC \u662f\u552f\u4e00\u4ea4\u96c6\uff1a4308 \u7528\u7684\u662f 11.43%\uff08Jul\u2013Sep\uff09\uff0c\u672c\u6587\u7528\u65b0\u516c\u5e03\u7684 11.51%\uff08Oct\u2013Dec\uff09\u5e76\u5185\u94fe\u8fc7\u53bb\uff0c\u4e0d\u590d\u8ff0\u7f5a\u5219\u3002\n      4213\uff08\u4f55\u65f6\u62a5\uff09\u30014258\uff08\u65b0\u516c\u53f8\u7b2c\u4e00\u5e74\u5408\u89c4\u65e5\u5386\uff09\u5404\u5185\u94fe\u4e00\u6b21\u3002\n\u6570\u5b57\u53e3\u5f84: \u5168\u90e8 2026-09-05 \u4e00\u624b\u62a0\u81ea ATO \u9875\u9762\uff0c\u9010\u6761\u8bb0\u6765\u6e90\u4e0e\u9875\u9762\u300cLast updated\u300d\u65e5\u671f\u3002\n         11.51%\uff08Oct\u2013Dec 2026\uff0c\u9875\u9762 09-04 \u66f4\u65b0\uff09\u300111.43%\uff08Jul\u2013Sep 2026\uff09\u3001\n         \u81ea\u52a8\u8fdb\u5165\u95e8\u69db $4,000\/$1,000\/$500\uff08\u4e2a\u4eba\u4e0e\u4fe1\u6258\uff09\u4e0e $2m\/$500\/\u5408\u5e76\u96c6\u56e2\u5934\u516c\u53f8\uff08\u516c\u53f8\u4e0e\u57fa\u91d1\uff09\u3001\n         Q1 \u5230\u671f\u65e5 28 Oct\u3001\u7535\u5b50\u7533\u62a5\u53ef\u8fdf\u4e24\u5468\u300185% \u53d8\u66f4\u7ea2\u7ebf\u3001GIC \u81ea 2025-07-01 \u8d77\u4e0d\u53ef\u62b5\u6263\u3001\n         2026\u201327 \u6700\u9ad8\u8fb9\u9645\u7a0e\u7387 45c\uff08$190,000 \u4ee5\u4e0a\uff09+2% Medicare\u3002\n         \u300c\u7b49\u6548\u53ef\u62b5\u6263\u5229\u7387\u300d\u662f**\u8ba1\u7b97\u503c\u4e0d\u662f ATO \u6570\u5b57**\uff0c\u6b63\u6587\u4e0e\u8868\u683c\u5747\u5df2\u6807\u6ce8\u5047\u8bbe\u4e0e\u7b97\u5f0f\u3002\n\u5dee\u5f02\u5316\u56db\u70b9: \u2460 11.51% \u662f\u6628\u5929\u624d\u516c\u5e03\u7684\u6570\uff0cSERP \u4e0a\u6ca1\u4eba\u5199\uff1b\u2461 \u4e0d\u53ef\u62b5\u6263\u5e26\u6765\u7684 gross-up \u6362\u7b97\n           \uff0811.51% \u975e\u62b5\u6263 \u2248 21.7% \u53ef\u62b5\u6263\uff0c\u6309 47% \u8fb9\u9645\u7a0e\u7387\uff09\u2014\u2014\u8fd9\u6761\u628a\"\u5229\u7387\"\u7ffb\u8bd1\u6210\"\u771f\u5b9e\u6210\u672c\"\uff1b\n           \u2462 activity statement \u4e0e instalment notice \u662f\u4e24\u79cd\u4e1c\u897f\uff0c\u4e24\u5468\u7535\u5b50\u5ef6\u671f\u53ea\u5199\u5728\u524d\u8005\u540d\u4e0b\uff0c\n           \u62ff\u5230 notice \u7684\u4eba\u4e0d\u8be5\u5047\u8bbe\u81ea\u5df1\u6709\u5230 11 \u6708\uff1b\u2463 85% \u7ea2\u7ebf\u5728 11.51% \u4e0b\u7684\u542b\u4e49\u53d8\u4e86\uff1a\n           \u8c03\u4f4e\u7684\u4ee3\u4ef7\u4ece\"\u6e29\u548c\"\u53d8\u6210\"\u6309\u975e\u62b5\u6263 11.51% \u8ba1\u65e5\u590d\u5229\"\u3002\n\u6267\u4e1a\u8fb9\u754c: \u4e0d\u7ed9\u4e2a\u6848\u662f\u5426\u8be5\u53d8\u66f4\u7684\u5224\u65ad\uff08ATO \u81ea\u5df1\u4e5f\u5199 \"may want to get advice\"\uff09\uff1b\n         \u4e0d\u627f\u8bfa remission\uff1bgross-up \u53ea\u4f5c\u53e3\u5f84\u6362\u7b97\uff0c\u4e0d\u6784\u6210\u7a0e\u52a1\u7b79\u5212\u5efa\u8bae\u3002\n--><\/p>\n<p>You lodged your 2025-26 return, the assessment came back, you paid what it said. Then a letter arrived telling you that you are now in the pay as you go instalments system and the first payment is due 28 October 2026.<\/p>\n<p>Nothing has gone wrong. This is the automatic consequence of having reported business or investment income above a threshold. What changed this week is the price of getting the amount wrong. On 4 September 2026 the ATO published the general interest charge rate for the October to December quarter at 11.51% a year, the highest quarterly rate since January to March 2012.<\/p>\n<figure>\n  <img decoding=\"async\" src=\"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/09\/payg-instalment-notice-hero-2026-09-05.jpeg\" alt=\"Envelopes marked paid and due beside a calculator, representing a PAYG instalment notice due 28 October 2026, Wiselink Accountants Melbourne and Brisbane\" \/><figcaption>A PAYG instalment notice is a prepayment of tax you have not earned the full year of yet. The due date does not wait for the income.<\/figcaption><\/figure>\n<h2>Why you were put into the system<\/h2>\n<p>The ATO enters you automatically based on your most recent return. The test is mechanical, and for individuals all three conditions have to be met.<\/p>\n<table>\n<thead>\n<tr>\n<th>Who you are<\/th>\n<th>Automatic entry when<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Individual, including sole trader, or a trust<\/td>\n<td>All three: instalment income of $4,000 or more on your latest return, tax payable of $1,000 or more on your latest notice of assessment, and estimated (notional) tax of $500 or more.<\/td>\n<\/tr>\n<tr>\n<td>Company or super fund<\/td>\n<td>Any one of: instalment income of $2 million or more, estimated (notional) tax of $500 or more, or being the head company of a consolidated group.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Instalment income is your gross business and investment income, excluding GST and excluding capital gains. That last exclusion catches people out in the other direction: a one-off capital gain does not by itself put you into the system, but the tax payable it created does count toward the $1,000 test.<\/p>\n<p>Source: ATO, <em>Starting PAYG instalments<\/em>. Page last updated 17 December 2024. Retrieved 5 September 2026.<\/p>\n<p>The practical read of that table: a salaried employee who picked up $5,000 of dividends and franking credits, or a first-year sole trader who did better than expected, can land in quarterly instalments without ever having run a business bank account. Businesses with instalment income above $20 million pay monthly rather than quarterly.<\/p>\n<h2>What is actually due on 28 October 2026<\/h2>\n<p>Quarterly instalment due dates are 28 days after the quarter ends. Wednesday 28 October 2026 covers the July to September quarter, which is the first quarter of the 2026-27 year.<\/p>\n<table>\n<thead>\n<tr>\n<th>Quarter<\/th>\n<th>Period<\/th>\n<th>Due date<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>July to September<\/td>\n<td>28 October<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>October to December<\/td>\n<td>28 February<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>January to March<\/td>\n<td>28 April<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>April to June<\/td>\n<td>28 July<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Source: ATO, <em>When are PAYG instalments due<\/em>. Page last updated 3 March 2026. Retrieved 5 September 2026.<\/p>\n<h3>Check whether you have an activity statement or an instalment notice<\/h3>\n<p>These are two different documents and they carry different instructions.<\/p>\n<p>If you receive an <strong>activity statement<\/strong> and lodge it online, the ATO says you may be eligible to lodge and pay two weeks later than the usual due date. For the September quarter that would be Wednesday 11 November 2026. If you pay GST monthly, the two week concession does not apply to you and your due date is the 21st of the month.<\/p>\n<p>If you receive an <strong>instalment notice<\/strong> and you intend to pay the amount printed on it, the ATO&#8217;s instruction is that you do not need to lodge anything. You pay the amount by the due date shown on the notice. The two week electronic concession is described against activity statements, not instalment notices, so do not assume a notice buys you until November. Look at which document you have before you plan the cash.<\/p>\n<p>Source: ATO, <em>When are PAYG instalments due<\/em>. Retrieved 5 September 2026.<\/p>\n<h2>The 11.51% that landed this week<\/h2>\n<p>General interest charge applies where an amount remains unpaid after it should have been paid, and the ATO lists an underestimated instalment of tax as one of the triggers. It is calculated daily and compounds.<\/p>\n<table>\n<thead>\n<tr>\n<th>Quarter<\/th>\n<th>GIC annual rate<\/th>\n<th>Daily rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>October to December 2026<\/td>\n<td>11.51%<\/td>\n<td>0.03153425%<\/td>\n<\/tr>\n<tr>\n<td>July to September 2026<\/td>\n<td>11.43%<\/td>\n<td>0.03131507%<\/td>\n<\/tr>\n<tr>\n<td>April to June 2026<\/td>\n<td>10.96%<\/td>\n<td>0.03002740%<\/td>\n<\/tr>\n<tr>\n<td>January to March 2026<\/td>\n<td>10.65%<\/td>\n<td>0.02917808%<\/td>\n<\/tr>\n<tr>\n<td>October to December 2025<\/td>\n<td>10.61%<\/td>\n<td>0.02906849%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Source: ATO, <em>General interest charge (GIC) rates<\/em>. Page last updated 4 September 2026. Retrieved 5 September 2026.<\/p>\n<p>That is four consecutive quarterly increases. The last time the rate was at or above 11.51% was the January to March 2012 quarter, at 11.62%.<\/p>\n<h2>The part that changes what 11.51% means<\/h2>\n<p>General interest charge incurred on or after 1 July 2025 cannot be claimed as a deduction. GIC incurred before that date remains deductible in the year it was incurred.<\/p>\n<p>Source: ATO, <em>General interest charge<\/em>. Page last updated 10 June 2026. Retrieved 5 September 2026.<\/p>\n<p>Comparing 11.51% to a business overdraft rate is no longer a like-for-like comparison, because interest on the overdraft is generally deductible and this is not. To compare them you have to gross the ATO rate up by your marginal rate.<\/p>\n<table>\n<thead>\n<tr>\n<th>Your marginal rate, including 2% Medicare levy<\/th>\n<th>A deductible loan would have to charge this much to cost you the same after tax<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>47% (taxable income above $190,000)<\/td>\n<td>21.7%<\/td>\n<\/tr>\n<tr>\n<td>39% (taxable income $135,001 to $190,000)<\/td>\n<td>18.9%<\/td>\n<\/tr>\n<tr>\n<td>32% (taxable income $45,001 to $135,000)<\/td>\n<td>16.9%<\/td>\n<\/tr>\n<tr>\n<td>30% company tax rate<\/td>\n<td>16.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>These four figures are our calculation, not ATO figures.<\/strong> The method is 11.51% divided by (1 minus your marginal rate). Marginal rates are from the ATO&#8217;s resident tax rates for 2026-27, which set 45c in the dollar above $190,000, 37c from $135,001, 30c from $45,001, and a 2% Medicare levy on top of all of them. The company figure uses the 30% rate and ignores franking effects. Your own position will differ.<\/p>\n<p>Read that table as the answer to one question: if the choice is between paying the ATO on time and borrowing elsewhere to do it, what does the alternative have to cost before the ATO becomes the cheaper option. For most people the answer is now a number they will not see from a bank.<\/p>\n<h2>Varying the instalment, and the 85% line<\/h2>\n<p>You are allowed to vary your instalment if the amount the ATO calculated no longer reflects your year. The ATO works the amount out from your last return, so a business that has slowed down, a property that sold, or a contract that ended can all leave you prepaying tax on income you will not earn.<\/p>\n<p>Two rules govern the timing. The variation has to be lodged on or before the day the instalment is due, and before you lodge that year&#8217;s tax return. Once you vary, the new amount or rate applies to the remaining instalments for the year until you vary again.<\/p>\n<p>The limit is the one worth writing down. When your return is assessed, the ATO compares your actual instalments against the total tax payable on your instalment income for the year. If your varied instalments come to less than 85% of that figure, general interest charge can apply to the difference, on top of paying the shortfall, and penalties can apply depending on the circumstances.<\/p>\n<p>Source: ATO, <em>How to vary your PAYG instalments<\/em>. Page last updated 23 June 2026. Retrieved 5 September 2026.<\/p>\n<p>At 10.61% and deductible, an aggressive variation was a manageable mistake. At 11.51%, compounding daily, with no deduction, the same mistake costs materially more. The ATO&#8217;s own guidance on this is unusually direct: if you are not sure, do not vary, because overpaid instalments are refunded to you after you lodge.<\/p>\n<p>The ATO also notes that where a variation is needed because of floods or other disasters, it will not apply penalties or interest if you took reasonable care to estimate your end of year liability.<\/p>\n<h2>Getting out of the system<\/h2>\n<p>Entry is automatic and so is exit, but exit runs off your next return rather than a phone call. The ATO removes an individual from PAYG instalments where any of the following show up: business and investment income under $4,000 for residents, a tax debt under $1,000 after adjusting for instalments already paid, a calculated instalment rate of 0.0%, estimated notional tax under $500, eligibility for the seniors and pensioners tax offset, or the lodgment of a final return or non-lodgment advice.<\/p>\n<p>Source: ATO, <em>Stopping PAYG instalments<\/em>. Page last updated 18 December 2024. Retrieved 5 September 2026.<\/p>\n<p>If your circumstances changed mid-year, that means you can be sitting in the system for several more quarters while the return that would release you is still months away. Varying to nil is the mechanism for that period, and the 85% test still applies to it.<\/p>\n<h2>What we check before 28 October<\/h2>\n<p>For clients in this position the review is short and it is the same five questions every time.<\/p>\n<ol>\n<li>Which document arrived, an activity statement or an instalment notice, and therefore which due date applies.<\/li>\n<li>Whether you are on the instalment amount (option 1) or the instalment rate (option 2). If you are on the rate, your payment already moves with your income and a variation is usually only warranted when the taxable proportion of that income has changed.<\/li>\n<li>What this year&#8217;s income actually looks like against the year the ATO used to set the amount.<\/li>\n<li>If a variation is on the table, what 85% of the likely full-year tax on instalment income is, so the varied figure sits above that line rather than near it.<\/li>\n<li>Whether anything in the year ahead will trip the exit tests, which changes whether varying is worth the exercise at all.<\/li>\n<\/ol>\n<p>If you have unlodged returns from earlier years sitting behind all this, that is the more urgent problem, and we wrote about the 31 October consequences of it <a href=\"https:\/\/wiselinkaccountants.com.au\/overdue-tax-returns-australia-31-october-2026\/\">here<\/a>. If you registered a company recently and are trying to work out which obligations start when, the first-year compliance calendar is <a href=\"https:\/\/wiselinkaccountants.com.au\/new-company-first-year-tax-compliance-calendar-australia\/\">here<\/a>.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li>ATO, <em>Starting PAYG instalments<\/em>, last updated 17 December 2024.<\/li>\n<li>ATO, <em>When are PAYG instalments due<\/em>, last updated 3 March 2026.<\/li>\n<li>ATO, <em>How to vary your PAYG instalments<\/em>, last updated 23 June 2026.<\/li>\n<li>ATO, <em>Stopping PAYG instalments<\/em>, last updated 18 December 2024.<\/li>\n<li>ATO, <em>General interest charge (GIC) rates<\/em>, last updated 4 September 2026.<\/li>\n<li>ATO, <em>General interest charge<\/em>, last updated 10 June 2026.<\/li>\n<li>ATO, <em>Tax rates for Australian residents<\/em>, 2026-27 resident rates.<\/li>\n<\/ul>\n<p>All figures retrieved 5 September 2026. The gross-up table is our calculation and is labelled as such. This article is general information and does not take your circumstances into account.<\/p>\n<p>Wiselink Accountants works with individuals and business owners in Melbourne and Brisbane in English and Chinese. Lily Zhang is a CPA and registered tax agent, and the firm has been advising Australian small businesses since 2013.<\/p>\n<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"Why did the ATO put me into PAYG instalments when I already paid my tax bill?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Entry is automatic and is based on your most recent tax return, not on whether you paid on time. An individual, including a sole trader, or a trust enters the system when all three of the following apply: instalment income of $4,000 or more on the latest return, tax payable of $1,000 or more on the latest notice of assessment, and estimated (notional) tax of $500 or more. Instalment income is gross business and investment income, excluding GST and excluding capital gains. A company or super fund enters if any one of these applies: instalment income of $2 million or more, notional tax of $500 or more, or being the head company of a consolidated group. Source: ATO, Starting PAYG instalments, last updated 17 December 2024, retrieved 5 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"When is the first PAYG instalment for 2026-27 due?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Quarterly instalments fall due 28 days after the end of each quarter. The July to September 2026 quarter is due Wednesday 28 October 2026. The remaining quarters are due 28 February, 28 April and 28 July. If you receive an activity statement and lodge it online, the ATO says you may be eligible to lodge and pay two weeks later, which would be 11 November 2026 for the September quarter. That concession is described against activity statements. If you receive an instalment notice and pay the amount shown, the ATO says you do not need to lodge it and you pay by the due date on the notice. Businesses with instalment income above $20 million pay monthly. Source: ATO, When are PAYG instalments due, last updated 3 March 2026, retrieved 5 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"What is the ATO general interest charge rate right now?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The general interest charge is 11.51% a year for the October to December 2026 quarter, a daily rate of 0.03153425%, published by the ATO on 4 September 2026. The July to September 2026 quarter was 11.43%. That is the fourth consecutive quarterly increase, and the last quarter at or above 11.51% was January to March 2012 at 11.62%. GIC is calculated daily and compounds, and the ATO lists an underestimated instalment of tax as one of the situations where it applies. Source: ATO, General interest charge (GIC) rates, last updated 4 September 2026, retrieved 5 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Can I claim the ATO interest charge as a deduction?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Not if it was incurred on or after 1 July 2025. The ATO states that general interest charge incurred on or after that date cannot be claimed as a deduction, and that any such GIC later remitted does not need to be included as interest income. GIC incurred before 1 July 2025 can still be claimed in the financial year it was incurred, and if it is later remitted the remitted amount is included as income in the year of remission. Because it is not deductible, comparing the 11.51% rate to a deductible business loan is not like for like. Source: ATO, General interest charge, last updated 10 June 2026, retrieved 5 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Can I reduce my PAYG instalment if my income has dropped?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Yes, you can vary the amount or the rate, but the timing and the floor both matter. The variation must be lodged on or before the day the instalment is due, and before you lodge that year's tax return. The varied amount applies to the remaining instalments for the year until you vary again. When your return is assessed the ATO compares your actual instalments to the total tax payable on your instalment income. If your varied instalments come to less than 85% of that amount, general interest charge can apply to the difference on top of the shortfall, and penalties can apply depending on the circumstances. The ATO's position is that if you are unsure it is better not to vary, because overpaid instalments are refunded after you lodge. Source: ATO, How to vary your PAYG instalments, last updated 23 June 2026, retrieved 5 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"How do I get out of the PAYG instalments system?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Exit is also automatic and it runs off your next tax return. The ATO removes an individual where any of the following apply: business and investment income of less than $4,000 for residents, a tax debt of less than $1,000 after adjusting for instalments and voluntary payments, a calculated instalment rate of 0.0%, estimated notional tax of less than $500, eligibility for the seniors and pensioners tax offset, being under 18 with Division 6AA income below the lowest marginal threshold, or lodging a final return or a non-lodgment advice. Trusts, companies and super funds have their own equivalent tests. Because exit depends on a lodged return, a mid-year change in circumstances can leave you in the system for several more quarters, and varying is the mechanism for that period. Source: ATO, Stopping PAYG instalments, last updated 18 December 2024, retrieved 5 September 2026.\"}}]}<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You lodged, you paid, and then a letter said you are now in PAYG instalments with the first payment due 28 October 2026. On 4 September the ATO set the October to December general interest charge at 11.51%, the highest since early 2012, and it has not been deductible since 1 July 2025. What that does to the 85% variation limit, why an instalment notice and an activity statement carry different due dates, and the entry and exit thresholds behind the letter.<\/p>\n","protected":false},"author":5,"featured_media":4310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,17,61,18],"tags":[],"class_list":["post-4311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-topics","category-business-solutions","category-english-post","category-business"],"_links":{"self":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/comments?post=4311"}],"version-history":[{"count":0,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media\/4310"}],"wp:attachment":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media?parent=4311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/categories?post=4311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/tags?post=4311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}