2021 company PAYG instalment error
The Australian Tax Office has advised that it is aware of an error in its PAYG instalment calculations for the 2021 year.
The ATO has advised that it is aware of an error in respect of PAYG instalments for the 2021 year. The error has resulted in the instalments being calculated for companies eligible for the lower tax rate using the former rate of 27.5% and not the correct rate of 26%.
For clients who have lodged their activity statements and paid an amount based on the incorrect instalment calculation, the ATO indicates they will refund the overpaid amounts without any further action required from the client.
Clients who are yet to lodge will have a choice between lodging based on the current instalment calculation on the activity statement in which case the ATO will refund excess amounts as outlined above, or making a variation which will not trigger a refund process.
Speak to your accountant on 02 9957 4033 for any additional guidance.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.