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PAYG instalments - calculate using cash or accrual income

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Hi.  Can anyone please tell me if the income for calculating the PAYG instalment (when using the ATO rate) is taken from cash income or accruals income?  The company is classified as a small business (under $10M turnover) and reports on a cash basis for gst.  I can't find anything on the ATO website - it only refers to cash or accrual for gst reporting.

Edited at 19 Feb 2020 02:46 PM GMT

  • Member in Practice
  • Practice Certificate
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  • # 118420

Donna Polok said:

“Hi.  Can anyone please tell me if the income for calculating the PAYG instalment (when using the ATO rate) is taken from cash income or accruals income?  The company is classified as a small business (under $10M turnover) and reports on a cash basis for gst.  I can't find anything on the ATO website - it only refers to cash or accrual for gst reporting.

Edited at 19 Feb 2020 02:46 PM GMT

 I lodge via Govreports and it auto fills this based on the GST basis, so if cash, then cash income. Even where the business is accrual for income tax.  It is only a rough estimate by the ATO anyway and there are always overs or unders to be sorted in the tax return

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