The September tax instalment notices have recently been issued. You may notice that if you had previously varied your instalments down, they will have bounced back up again.
This is due to the fact that the September instalment is the first instalment for the 2016/17 year. As this is a new tax year, the ATO ignores any previous amendments to the instalments you may have made and goes back to looking at the last lodged return. You can tell which return the ATO is looking at by checking the year printed in tiny numbers next to the amount due box – it’s probably 2015.
The problem is easily fixed by varying the new instalment down if appropriate. Be careful though, as if you choose to pay less than the instalment and it turns out that you have not paid enough, there will be interest to pay when you lodge your 2016/17 return.
If you would like us to vary your instalment just get in touch with an estimate of your 2016/17 income.
Lindsay 0413 952 180