Free PAYG Instalment Calculator
Plan your quarterly ATO tax instalments and eliminate the end-of-year tax shock.
Est. Annual Tax
$19,320
Quarterly
$4,830
Estimates tax progressively. Instalments are a prepayment, not an extra tax
Includes the 85% variation safety check • Instant results • Mobile ready
Your realistic full-year estimate of net business/investment income.
The T7 instalment amount on your BAS or instalment notice. Leave blank to just estimate.
Quarterly Instalment Plan (2026-27)
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Free PDF report of the numbers above.
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Quarterly Due Dates
- Q1 (Jul-Sep): 28 October
- Q2 (Oct-Dec): 28 February
- Q3 (Jan-Mar): 28 April
- Q4 (Apr-Jun): 28 July
Premium Australian Business Intelligence
PAYG Instalment Plan Report
Estimated quarterly PAYG instalments on expected business profit for the 2026-27 financial year, including the 2% Medicare levy and Low Income Tax Offset.
Scenario Parameters
Financial Analysis
This document provides calculated estimates based on public Australian Taxation Office (ATO) guidelines and typical business parameters for the 2024-2026 financial years. AusCalc provides these models for strategic planning purposes only. These figures do not constitute personal financial, legal, or professional tax advice. Actual results depend on individual tax structure, deductions, and legislation changes. We mandate that you verify these projections with a Register Tax Agent or Financial Advisor before executing business strategies.
Invoice the job and see exactly how much of it to put aside for tax.
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
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Want the full picture on sole trader tax?
Read our Complete Sole Trader Tax Guide →How PAYG Instalments Are Worked Out (2026-27)
How This PAYG Instalment Calculator Works
PAYG instalments are the single most confusing part of sole trader tax. Mostly because the ATO's notified amount is based on your last lodged return, uplifted by a GDP factor, not on what you are actually earning this year. This calculator works forwards instead: enter your realistic expected profit for the current year and it applies the 2026-27 resident tax brackets, subtracts the Low Income Tax Offset, adds the 2% Medicare levy, and divides the result into four quarterly instalments.
If you enter the instalment amount from your activity statement (label T7), the calculator compares the ATO's backward-looking figure to your forward-looking estimate. When the ATO amount is higher, you may be able to vary down and keep that cash working in your business; when it is lower, the tool warns you to set aside the difference so the balance at tax time doesn't hurt.
Worked Example: $90,000 Expected Profit
1. Estimate the year's tax (2026-27 rates)
Income tax on $90,000 = $17,520.00 (15%/30% brackets, no LITO above $66,667)
2. Add the Medicare levy
$90,000 × 2% = $1,800 → total ≈ $19,320.00
3. Divide by four quarters
$19,320.00 ÷ 4 ≈ $4,830.00 per quarter
If the ATO notified you to pay $6,000 a quarter (because last year was stronger), varying down to ~$4,900 frees up over $4,400 across the year. And is safe provided your varied total stays above 85% of your actual final liability. If the ATO notified only $3,000 a quarter, you should bank the ~$1,900 quarterly difference yourself.
The 85% Rule: When Varying Down Is Safe
You can vary your PAYG instalment on each activity statement before its due date. The safety line is 85%: if your varied instalments (plus any withholding credits) end up totalling less than 85% of the tax actually assessed on your return, the ATO can apply general interest charge on the shortfall from the date each instalment was due. The practical rule: vary using a realistic, slightly conservative profit estimate, revisit it every quarter as your year firms up, and never vary to zero just to ease cash flow. The bill still arrives at tax time, with interest.
Key PAYG Instalment Facts (2026-27)
- Entry Threshold$4,000+ instalment income & $1,000+ tax on it (most recent return)
- Quarterly Due Dates28 Oct • 28 Feb • 28 Apr • 28 Jul
- Variation Safety Floor85% of actual annual liability
- At Tax TimeAll instalments credited against your assessment
Frequently Asked Questions (FAQ)
What are PAYG instalments?
PAYG (Pay As You Go) instalments are quarterly prepayments towards your expected income tax bill. The ATO automatically enters sole traders into the system once their business or investment income tax passes a threshold, so you pay tax progressively through the year instead of facing one large bill at tax time. Instalments are credited against your final assessment.
How does the ATO work out my PAYG instalment amount?
The ATO bases your instalment on the business and investment income in your most recently lodged tax return, uplifted by a GDP adjustment factor. Because it looks backwards, the notified amount is often wrong for your current year. Too high if your income has dropped, too low if you are growing.
Can I vary my PAYG instalment down?
Yes. You can vary your instalment amount or rate on your activity statement before the payment due date if you believe the ATO amount overstates your likely tax. But if your varied instalments end up totalling less than 85% of your actual tax liability for the year, the ATO can charge general interest charge (GIC) on the shortfall. So vary using realistic profit estimates.
When are PAYG instalments due?
For quarterly payers, instalments are generally due 28 days after each quarter ends: 28 October, 28 February, 28 April and 28 July. If you lodge your BAS through a tax or BAS agent, you may receive extended due dates.
What happens to my instalments at tax time?
Every dollar of PAYG instalments you pay is credited against the tax assessed on your return. If your instalments exceed your final liability you receive a refund; if they fall short you pay the balance. Instalments are a prepayment mechanism, never an extra tax.