Government Announcements
Reduced PAYG instalments for 2009-10
28.03.2009
In a joint media release issued on 28 March 2009 the Minister for Small Business and the Treasurer announced that the quarterly PAYG instalments for the 2009-10 income year will be reduced for taxpayers whose quarterly tax instalments are adjusted for previous years’ Gross Domestic Product (“GDP”) growth.
The expected increase in the Consumer Price Index (“CPI”) for 2009-10 (rather than previous year’s GDP growth) will be used to calculate tax instalments. This means that, for the 2009-10 income year, the GDP adjustment is to be reduced from 9% to 2%, aligning it with the expected CPI growth of 2% for 2009-10.
The reduction will provide cash flow benefits to around 1,500,000 taxpayers, cutting their PAYG instalments by around 6%. This will ensure that their PAYG instalments more closely approximate their actual income tax liability for the year.
Business owners who pay their GST quarterly will also benefit. The media release states that the Commissioner has advised that he will use the 2% adjustment factor when calculating GST instalments.
For the text of the media release (which includes an attachment explaining the PAYG instalment reduction), click here.
