Modified Pay As You Go (PAYG) instalments relief for small business from 1 July 2009
For the 2009-2010 financial year, the Government will provide cash flow relief by reducing PAYG instalments for all taxpayers who pay quarterly instalments based on their previous year’s tax adjusted by GDP growth. From next year the adjustment factor for calculating quarterly instalments will be reduced from 9% to 2% to align it with the expected increase in the consumer price index.
This reduction will ensure that eligible small businesses, individuals, trusts and small super funds will have additional cash flow by more closely aligning their PAYG instalment amounts with their likely income tax liability for the year.
