GST & BAS · AU

PAYG (Pay As You Go)

Paying tax through the year rather than in one lump.

PAYG is the ATO’s way of collecting income tax gradually through the year. PAYG withholding is tax an employer holds back from wages; PAYG instalments are prepayments a business or investor makes towards its own income tax, usually via the BAS, so there’s no big bill at year-end.

Grounded in ATO guidance. General information, not tax advice.

Related terms

BAS (Business Activity Statement)

The form GST-registered businesses use to report GST and PAYG.

GST (Goods and Services Tax)

Australia’s flat 10% tax on most goods and services.

Marginal tax rate

The tax rate on your next dollar of income.

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