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PAYG Instalments: Which Method Should You Choose This September? Many business owners will shortly receive their September 2026 Activity Statements and be asked to choose a PAYG instalment method. PAYG instalments commonly apply to individuals, sole traders, primary producers, trusts and companies that earn business or investment income. Rather than paying all of their tax after lodging a tax return, affected taxpayers make instalment payments throughout the year towards their expected income tax liability. While PAYG instalments do not change the total amount of tax ultimately payable, selecting the most suitable method can help manage cash flow and avoid unexpected tax bills. For most taxpayers, the July to September quarter is the first PAYG instalment quarter of the financial year. If your Activity Statement outlines both methods, you generally need to lodge your Activity Statement and make your choice on or before the due date, and that election will usually apply for the balance of the income year. The Two Methods Option 1: Instalment Amount Method The ATO issues a fixed instalment amount based largely on your most recent tax return, which has been adjusted for expected growth by the GDP of 5% for the 2026–27 income year. This approach may suit businesses with relatively stable income and profits, or those who prefer predictable quarterly payments. Option 2: Instalment Rate Method Under this method, you multiply your ATO-issued instalment rate by your instalment income for the quarter. This usually comprises gross assessable business and investment income derived during the period, excluding GST. It is not the same as accounting profit or taxable income, and particular exclusions or adjustments may apply. For example, if your instalment income is $150,000 and the ATO-issued rate shown at T2 on your activity statement is 4%, your PAYG instalment would be $6,000 This method is often more suitable where income is seasonal, fluctuating or significantly different from the prior year. Which Option Is Best? When choosing a method, consider: Whether income is higher or lower than last year Seasonal fluctuations in revenue Changes in profitability or operating costs Significant capital purchases or deductions Changes in business structure or investments Cash flow preferences and payment predictability The instalment amount method can overestimate tax if your latest tax return reflected an unusually strong year. Conversely, the rate method may result in larger instalments during high-income quarters. Can You Vary an Instalment? If expected tax is materially different from the ATO calculation, it may be possible to vary the instalment amount or rate. A variation must generally be made by the instalment due date and applies to the remaining instalments for the income year unless varied again. A downward variation should be based on a reasonable estimate. If your varied instalments are less than 85% of the tax ultimately payable on your instalment income, you may have to pay general interest charge in addition to the outstanding tax. Penalties may also apply in some circumstances. Special Considerations for Primary Producers Eligible primary producers may be able to pay PAYG instalments twice a year using the instalment amount method: 75% of the annual amount due in April, and the remaining balance due in July. Eligible farmers can instead change to quarterly payments by choosing the instalment rate method by the first instalment due date.  Need Help? Before lodging your September quarter Activity Statement, contact us if your income, margins, seasonal conditions or business structure have changed. We can review your PAYG options, assess whether a variation is appropriate and ensure any available concessions are taken into account.

Has the ATO started you on PAYG instalments? Here's what you need to know. PAYG instalments are regular payments made towards your expected income tax liability throughout the year. Instead of receiving a large tax bill when you lodge your tax return, PAYG instalments allow you to spread your tax payments across the year, making it easier to manage cash flow and budgeting. The ATO will generally notify you if you are required to enter the PAYG instalment system based on the results of your most recently lodged income tax return. Most taxpayers make instalment payments quarterly. However, primary producers are typically required to pay in the March and June quarters, reflecting the ATO's recognition that these periods often coincide with higher seasonal cash flow. All PAYG instalments paid during the year are credited against your final income tax assessment. If your income changes, you may be able to vary your instalments, although reducing them too far could result in interest charges or penalties from the ATO. It is also important to note that PAYG instalments are different from PAYG withholding, which is tax withheld from employee wages and remitted to the ATO by employers.  PAYG instalments can help reduce the impact of a large year-end tax bill while allowing you to progressively meet your tax obligations throughout the year. If you have any questions regarding PAYG Instalments please get in touch with your accountant.

Navigating the aged care system can feel overwhelming, particularly when faced with the complex terminology, means testing rules, and various fees that may apply. Many families worry about whether they can afford aged care or whether a loved one will need to sell their home to pay for care. The good news is that Australia's aged care system is heavily subsidised by the Government, and there are protections in place to ensure that everyone can access appropriate care regardless of their financial circumstances. What Fees Apply in Residential Aged Care? If a person moves into an aged care home, there are generally four categories of costs that may apply. 1. Basic Daily Fee The Basic Daily Fee is paid by almost all residents and contributes towards day-to-day living expenses such as meals, cleaning, laundry and utilities. It is set by the Government and indexed regularly. As at March 2026, the maximum Basic Daily Fee is approximately $66.80 per day. 2. Means-Tested Contributions Depending on a person's income and assets, they may be required to contribute towards the cost of their care through means-tested arrangements. For people entering aged care under the newer fee arrangements, contributions may include: · Hotelling Contributions · Non-Clinical Care Contributions These fees are determined following a financial assessment conducted by Services Australia and are subject to annual and lifetime caps. Some residents pay nothing beyond the Basic Daily Fee, while others may make additional contributions based on their financial capacity. 3. Accommodation Costs Accommodation costs are often the most significant expense and are determined by the aged care provider. Residents may pay for accommodation by: · A Refundable Accommodation Deposit (RAD), being a lump sum payment; · A Daily Accommodation Payment (DAP); · Or a combination of both. A RAD is generally refundable when the resident leaves care, less any agreed deductions allowed under the legislation. 4. Additional Service Fees Some aged care homes offer enhanced services beyond the standard level of care. These may include superior accommodation, upgraded meal options, lifestyle programs or additional amenities. Where applicable, providers can charge additional fees for these optional services. Do You Have to Sell the Family Home? One of the most common concerns families raise is whether the family home must be sold to fund aged care. The answer is often "not necessarily." The home is only one factor considered in the aged care means assessment, and various rules apply regarding how much of the home's value is counted. In many cases, families can choose between paying a RAD, a DAP or a combination of both, allowing flexibility in managing cash flow and preserving assets. However, the decision to retain or sell the family home can have significant consequences for: · Aged care fees; · Centrelink entitlements; · Estate planning objectives; · Cash flow requirements; and · Tax outcomes. This is why obtaining specialist aged care advice is often worthwhile before making any major financial decisions. What About Home Care? For older Australians who remain living at home, government-funded home care programs can help support independence. Under the Support at Home framework, contributions are generally determined by a person's income and assets. Clinical services are typically government funded, while contributions may apply to other support services depending on financial circumstances. Unlike residential aged care, there is generally no accommodation component because the individual continues living in their own home. Can Everyone Access Aged Care? A common misconception is that people with significant assets are not entitled to government-supported aged care, or that those with limited resources cannot afford care. In reality, all eligible Australians can access government-subsidised aged care services. The financial assessment process is designed to determine an individual's contribution, while government funding covers the balance of approved care costs. Key Takeaways When considering aged care, families should remember: · Everyone generally pays a Basic Daily Fee. · Additional contributions may be payable depending on income and assets. · Accommodation can be funded using a RAD, DAP or a combination of both. · The family home can significantly affect aged care outcomes. · Government subsidies ensure aged care remains accessible regardless of financial position. · Obtaining financial and aged care advice before entering care can potentially save considerable costs and avoid unintended consequences. Final Thoughts Aged care is one of the most significant financial decisions many families will face. While the fee structure can initially appear complex, understanding the different components and planning ahead can make the process far less stressful. The best outcomes are usually achieved when aged care planning is considered alongside estate planning, tax advice, Centrelink entitlements and broader family objectives. Taking the time to obtain advice before entering care can help ensure that both the older person and their family make informed decisions with confidence.

In close to 57 years, I have received a lot of advice from many sources. Starting from my parents, my friends, community members, work colleagues, mentors across these fields as well as my clients. Below are a few that stand out. Some of which I live by, some I need to take more notice of. 1. Treat others as you would like to be treated. If you can be anything in this world, be kind. 2. It is never as bad as you think and its never as good as you think. 3. If it sounds too good to be true it usually is. 4. If you have bad news to deliver, get it over and done with. The longer you wait the harder it will be to deal with for you and the recipient. 5. It is impossible to know everything. If you are stuck, ask for advice, decent people will always help. 6. Comparison is the thief of joy. 7. If you want to learn something, surround yourself with people who see things differently than you. Collaboration is a great problem solver. 8. Borrowing to invest magnifies your result. If it is a crap investment, you will lose more by borrowing. If it is a great investment, you will get a great return in the long run. 9. Understand the importance of community and contributing to community groups. Volunteering and doing things for others provides immeasurable rewards. 10. Investing in anything (bank deposits, shares, property) all involves risk – the secret is to understand the risk you are dealing with. 11. Making mistakes is part of life, just get better at not making the same mistake twice. 12. Every investment needs to pass a “sleep at night” test. If you cannot sleep at night, do not invest in it. This test is different for every individual. 13. If you have a “bucket list” of things you want to do – tell others! Telling others will massively increase the chances of you achieving your bucket list items, because people will want to help you with your list. 14. Compounding investment returns are the eighth wonder of the world. 15. Measure your progress, it is OK to count your money. 16. Experience the thrill and energy of live music! 17. The only way to grow is by putting yourself in unfamiliar and uncomfortable situations. 18. The best time to invest is yesterday. 19. Be curious, it is amazing what you might find out. 20. Invest regularly, automatically and for the long-term, it pays off big time! 21. The best investment you can make is investing time and money with the people that mean the most to you. Invest in meals, get togethers, laughter, weekends with special friends and family – there is nothing like it!